How Dutch insurers are tackling banana skins

With the rapid pace of technological change, AI continues to evolve — and with it come new risks. That’s really the ‘banana skin’ for insurers: managing these risks effectively demands a great deal of focus and resources. The top three risks are closely connected, though each has its own nuances.  

Korver: ‘When it comes to technology, many insurers still have to deal with legacy IT systems — older software and infrastructure that lag behind modern standards. Mergers between insurance companies often complicate matters, as they bring together different systems that are costly and time-consuming to integrate, increasing the risk of data loss. As a result, insurers often continue running outdated systems until new integration projects are completed. This makes maintaining proper security a challenge, as these systems are more vulnerable to breaches. Making strategic choices about what to prioritise is important. 

On top of that, as software solutions are increasingly outsourced to third parties and cloud providers, a new layer of risk emerges: insurers no longer have full control over where their data resides. On the upside, the use of generative AI in the IT delivery chain, especially in understanding and transforming legacy software, can strongly accelerate the transition to target technology. 

So for the insurance world, the rapid rise of AI seems to be both a curse and a blessing. AI’s rapid rise to second place — jumping from number six just two years ago — reflects both excitement and anxiety within the sector, Korver agrees. ‘Insurers are exploring how AI can help predict claims patterns or detect fraud more accurately. Yet many of these innovations fall under regulatory scrutiny. Models that influence pricing or claims decisions may be subject to regulatory scrutiny.’ 

‘That’s a key constraint,’ Korver explains. ‘The industry wants to innovate, but it must do so responsibly. Regulators are rightly asking: how do we make sure these models don’t hallucinate, discriminate or undermine fairness? It’s a balancing act between speed and governance.’ 

The cautious pace is partly cultural. ‘It’s a traditional sector,’ Korver says. ‘You see insurers looking at AI adoption carefully. The push is there, but it has to be consistent, accurate and compliant.’ 

In the Dutch results, change management ranks fifth, slightly higher than in the global rankings. Toward the end of the report, the preparedness index shows that the Netherlands scores above the global average. This indicates that Dutch insurers feel that they are better prepared, and are more proactive in finding solutions than their global peers. Interestingly, the ‘anxiousness index’ in the barometer shows that Dutch insurers feel somewhat less anxious about these risks.

For Dutch insurers, Korver says, the awareness is high and the risk management frameworks are mature. ‘Dutch insurers take this seriously,’ she stresses. This likely reflects the fact that they recognize the importance of issues like change management and have already taken steps to address them.’

Besides the undeniable top three risks, it is notable that for Dutch insurers Climate Change has dropped from 1 to 6. But that doesn't mean this issue is actually less urgent, maybe also because of the Omnibus developments that it gets less attention, Korver explains. ‘I think it's important to see the different types of insurance companies that answered this; you need to pull them apart a little bit. Climate change is quite high on the agenda for insurance companies, especially P&C (property and casualty) (re)insurers — for example, when a flood destroys your house.’  

‘That makes sense, because climate change and the claims from adverse climate events have really escalated over the last two years. Two years back, it was still seen as a medium-term risk, but now it's at the forefront. The results don’t show that clearly, because for some parts of the insurance market, like life insurance, it’s a bit less relevant — they’re more affected by macroeconomic conditions and global events. So it looks like it’s slipping a bit, but that’s not really a fair way to look at it. 

In the Netherlands, with its tight labour market, it is not surprising that 'human talent' also scores high on the risk list. We have an aging population in the Netherlands. Human talent is a challenge in this environment because much of it requires technical, programming, and cybersecurity skills — and everyone is competing for the same people. It’s a classic war for talent.’ 

And the insurance world does not exactly have an advantage in terms of image, as also noted in the global report: ‘Insurance is not exactly the career one wakes up to get into after college.’ 

AI will also impact the workforce. ‘Many organizations are struggling with determining the impact of AI on the workforce - less young people or exactly the opposite? This uncertainty obviously is an increasing risk,’ Korver says.  

The Insurance Banana Skins study, conducted every two years by PwC in partnership with the Centre for the Study of Financial Innovation, gauges the risk perceptions of insurance professionals worldwide. Respondents identify and rank the top emerging risks facing the sector, scoring each for both ‘anxiety’ (how worrying it is) and ‘preparedness’ (how well the industry is equipped to deal with it).

The 2025 edition gathered responses from nearly 700 participants across 42 countries, including 20 from the Netherlands — providing a uniquely local lens on global risk dynamics.