INTRODUCTION Contributed by: Simon Cooper, DWF
struction of key policy terms in reinsurance as well as insurance contracts. Clearly, the courts’ conclusions on these issues will vary from jurisdiction to jurisdic- tion, and this guide provides an invaluable overview of the approaches adopted in key jurisdictions around the world. Vulnerability to cyber-attack is an increasing area of exposure for insureds around the world, with cyber criminals leveraging AI tools in increasingly sophis- ticated attacks. Insurance coverage for cyber risk is still relatively untested through the courts, and there remains significant uncertainty as to the way in which the courts of different jurisdictions will view this evolv- ing area. Again, this guide provides vital insights into the approach likely to be adopted in key areas. Modernising the global insurance industry In 2025, the drive to modernise the world’s insurance markets continued apace, and that trend will continue in 2026. The changes being introduced are in many cases fundamental and bring with them a range of legal and regulatory challenges for insurers, brokers and regulators alike. One aspect of the drive for modernisation is the con- tinuing search by established insurers for new mar- kets and territories in which to expand. The desire for expansion is being assisted by regulatory adjust- ments in some jurisdictions that are increasingly open to external investment, but it is also challenged by the growing assertiveness of insurers domiciled in emerging markets. It is imperative, therefore, that insurers, those in related professions and their advis- ers all understand the different legal and regulatory requirements for operating in different jurisdictions. This guide, written by experts from around the world, seeks to provide a practical overview of these require- ments in the key international jurisdictions. Insurtech The growth of insurtech and the wider use of artifi- cial intelligence (AI) presents both opportunities and challenges to insurers and brokers. Insurers are using insurtech to create more personalised and better-tar- geted insurance products through the development of sophisticated algorithms to analyse detailed source data and broader market data, to produce a highly
specific risk profile and price. Similar initiatives are being developed to speed up the handling of claims while increasing insurers’ ability to detect fraud and analyse the cost and benefit of claims disputes. At present, these advances are limited principally to personal lines insurance and SME business, but it is expected that they will be applied to larger commer- cial risks in the coming years. The increasing use of insurtech, and AI more gen- erally, brings with it significant legal and regulatory challenges, and the responses are likely to vary from jurisdiction to jurisdiction. For example, insurtech involves managing huge quantities of personal data, which is often of a sensitive nature. The EU’s General Data Protection Regulation (GDPR) has created a new legal regime within which insurers have to manage this data, with the risk of incurring very significant financial penalties for non-compliance. Importantly, although this is an EU regulation, it applies to insurers anywhere in the world that hold information about EU citizens, so it has potential ramifications for insurers and their advisers, wherever they may be. Jurisdictions outside Europe, of course, have different approaches to data protection, which this guide seeks to highlight. One of the key objectives of insurtech is to strengthen the connectivity between insurers and their clients. This is achieved through more personalised underwrit- ing and the adoption of different distribution meth- ods, including social media and internet apps. Many innovative new products rely on source data gath- ered through wearable technology and the internet of things (IoT). These communications, and information from things like wearable technology, are subject to the EU’s ePrivacy Directive, which is currently being updated in an effort to keep pace with the rapid devel- opments in this field. All of these technological advances are challenging existing legal assumptions, which are often based on laws developed for an entirely different commercial world. How the laws of different jurisdictions adjust to these challenges is one of the issues this guide seeks to address.
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