Emerging Risk Trends
Key Takeaways
Commentary: Diverging global regulations are driving operational complexity - firms must align compliance strategies across jurisdictions.
Commentary: Insurers are focusing on systemic risk events, supply chain resilience, and how well firms have segmented critical infrastructure.
Commentary: ESG is now a battleground—GB regulation is tightening while US scrutiny intensifies under a politically fractured landscape.
Regulatory and Political Risk
UK regulatory bodies continue to support FinTech growth, with UK Treasury determined to secure IPOs on the LSE for London domiciled FinTech unicorns, but expect enhanced reporting, especially around financial promotions and AI.
Open finance initiatives and evolving consumer data rights are fuelling regulatory uncertainty. Firms building APIs, aggregators, or B2B2C platforms face heightened risk around data use, disclosures and evolving liability standards.
Cybersecurity and Technology Risks
Core exposures include vendor risk, platform outages, data breaches, and deepfake fraud.
GenAI tools, especially customer-facing, are raising red flags around misinformation and liability.
Underwriters are seeking clear privileged access management and breach response plans.
IPO and M&A Readiness
While IPO activity remains quiet, insurers are examining corporate governance and growth-stage controls in detail.
VC-led governance models can complicate underwriting unless roles and responsibilities are clearly documented.
