Insurers in Australia worry most about cyber crime, followed by regulation and climate change, according to a biennial survey by consultancy PwC.

Reputation placed fourth, followed by human talent, technology, macroeconomy, cost reduction, political risk and change management.

Cost reduction jumped four places since the last survey to make it to the top-10 list of risks, reflecting the pressure facing insurers as customers struggle with inflation.

PwC says concerns are mounting over insurance affordability due to the large premium rises required to keep up with inflation. At the same time, climate-related events have increased in prevalence, affecting claims frequency and severity. The speed of policy payments is also under the spotlight, as vulnerability and financial hardship issues escalate.

“What our report shows is that cost is a rising area of concern, and became a particular focus for the industry in the second half of last year,” PwC Australia Insurance Leader Antonie Jagga told insuranceNEWS.com.au.

“As cost-of-living pressures impact businesses as well as households across Australia, insurers have a role to play by providing affordable cover to their customers.” 

See Analysis.