Executives and directors in the global insurance industry are rebelling against excessive regulation, and Australian companies are also anxious about a forthcoming round of mergers and acquisitions.

More than 70% of global insurance executives say they are saddled with too much regulation, which they say is stifling innovation and creating barriers to competition.

The “Banana Skins” survey, from the UK-based think tank Centre for the Study of Financial Innovation, also highlighted concerns about consolidation in the insurance industry among Australian respondents.

Kim Smith, a partner at report co-author PricewaterhouseCoopers, says local executives expect merger and acquisition activity to increase. “With rigorous due diligence, the risk of a rotten deal is fairly small,” he said.

“The biggest challenge facing boards and executives during a transaction is being able to execute it effectively without distracting the organisation from day-to-day operations.”

Apart from over-regulation, concerns about natural catastrophes and climate change are among the most common responses. Pollution comes in at 21st in the most common risks.

“Climate change was the fastest-rising risk globally and is a hot issue here in Australia,” Mr Smith said.

“There is a heightened risk of loss around flood, storm and fire damage, but the real challenge for insurers is to get the models and pricing right in a rapidly changing and uncertain climate.”