What's Happening?
According to the Allianz Risk Barometer report, insurers in China are facing significant challenges due to the rapid rise of artificial intelligence (AI), which is now ranked as the second-highest concern for businesses in the country. Business interruption
remains the primary concern, driven by supply chain disruptions and geopolitical shifts. Changes in legislation and regulation are also major risk drivers. The report highlights AI's growing role as a source of operational, legal, and reputational challenges. China's 'AI Plus' initiative aims to integrate intelligent terminals into key sectors by 2030, further embedding technology into the risk landscape.
Why It's Important?
The rise of AI as a major concern for insurers in China reflects broader global trends where technology is reshaping risk landscapes. Insurers must adapt to these changes, which could impact underwriting practices and risk management strategies. The integration of AI into various sectors presents both opportunities and challenges, requiring insurers to develop new models to assess and mitigate risks. The geopolitical context, including trade restrictions, adds complexity to business operations, influencing insurance needs. As AI adoption accelerates, insurers must navigate these shifts to remain competitive and protect their clients effectively.
