Insurance Industry Faces AI And Climate Risks

On February 27, 2026, industry experts report that insurers are confronting operational shifts driven by AI adoption, climate volatility, and changing consumer behavior, noting U.S. and U.K. commercial markets are softening and 2025 saw $61 billion in insured losses from severe convective storms. They also cite that fewer than ten percent of firms responsibly scale AI agents and that generative-AI-enabled fraud is rising. Insurers must strengthen data foundations, governance, and fraud intelligence to maintain underwriting discipline and financial resilience.