Insurers in Singapore are experiencing higher anxiety levels than their global counterparts due to increasing risks from cyber crimes, artificial intelligence (AI), and macroeconomic uncertainties, according to the latest ‘Insurance Banana Skins’ report by PwC Singapore and the Centre for the Study of Financial Innovation (CSFI). The report reveals that Singapore’s Banana Skins Index rose to 3.44, compared to the global average of 3.22, indicating a more cautious risk perception among local insurers in 2025.
The report, now in its tenth edition, highlights that Singapore’s preparedness in managing these risks is slightly below global benchmarks, with a Preparedness Index of 3.21 compared to the global 3.24. Cyber crime has been identified as the number one risk for Singapore insurers, reflecting the sector’s growing reliance on technology and the increasing sophistication of threat actors using generative AI.
AI has emerged as a significant concern, moving from outside the top 10 local risks in 2023 to the sixth position in 2025. This mirrors its global rise as a top risk, driven by its rapid development and the challenges it poses in monitoring and governance. Macroeconomic factors also weigh heavily on Singapore insurers, given the country’s status as a trade-dependent financial hub.
Ang Sock Sun, Insurance Leader at PwC Singapore, emphasised the need for insurers to integrate AI-driven solutions and enhance cyber resilience. “The focus must shift towards integrating AI-driven solutions, enhancing cyber resilience, and recalibrating economic strategies,” she stated. The next phase for Singapore insurers involves operationalising resilience in cyber and AI, and leveraging talent for transformative change.
