Core Insights - AXIS Capital Holdings Limited has published research on how artificial intelligence (AI) is transforming the risk environment, based on insights from CEOs and CISOs [1][3] Group 1: AI's Impact on Risk and Cybersecurity - AI is recognized for enhancing data analytics, innovation, and operational efficiency, while also introducing new risks [4][5] - The dual nature of AI as a productivity enhancer and a source of unprecedented risk is emphasized as central to modern cyber risk [5] - AI strengthens cyber defense tools but also empowers cybercriminals, creating new vulnerabilities [6] Group 2: Survey Findings on AI Threats - AI-driven attacks are the leading concern for 29.6% of US respondents and 20.8% of UK respondents [7] - A generational divide exists, with only 23.1% of executives aged 55 and over believing AI will enhance cyber defenses, compared to 77.4% of leaders aged 35–44 [8] Group 3: Regional Differences in AI Preparedness - There is a notable contrast between US confidence and UK caution regarding AI threats, with 85% of US leaders feeling prepared compared to 44% of UK leaders [9] - 88.4% of US CEOs believe AI will strengthen protections, while only 55% of UK CEOs share this view [9] Group 4: Return on Investment and Cyber Insurance - In the US, 93.5% of CEOs and 87.5% of CISOs believe AI delivers ROI in cybersecurity, compared to 69.1% of CEOs and 74% of CISOs in the UK [10] - 94% of US respondents carry cyber insurance, while only 68.4% of UK respondents do [10] Group 5: Perspectives of CEOs vs. CISOs - CEOs view AI as a lever for productivity, while CISOs associate it with increased exposure [11] - 60.2% of CEOs feel better prepared than peers for AI-related threats, compared to 50.6% of CISOs [12] - CEOs identify data leakage as the primary AI-related threat (28.7%), while CISOs rank shadow AI as the top risk (27.2%) [12] Group 6: Trust and Concerns in AI Decision-Making - In the US, 31.2% of CEOs and 27.7% of CISOs cite AI-driven attacks as their greatest concern, while in the UK, the figures are 22% for CEOs and 19.7% for CISOs [13] - Trust in AI decision-making tools among UK CEOs is mixed, with 49.6% expressing trust and 37.4% expressing distrust [13] Group 7: Strategic Tension in Organizations - The findings highlight a strategic tension between the optimism of CEOs regarding AI and the caution of CISOs regarding security [14] - CEOs champion AI as a catalyst for innovation, while CISOs view it as a new frontier of exposure [14]

Core Insights - Cyber incidents remain the top global risk for companies in 2026, marking the fifth consecutive year at this position with a record score of 42% of responses, reflecting a 10% increase from the previous year [6][10] - The rapid adoption of artificial intelligence (AI) has propelled it to the second position in the risk rankings, with 32% of respondents identifying it as a significant concern, up from 10th place in 2025 [8][9] - Business interruption has dropped to the third position, indicating a shift in risk perception, although it remains a significant concern due to its connection with other risks [2][10] Cyber Risks - Cyber incidents are the primary concern across all regions, driven by increasing reliance on digital technology and evolving cyber threats [6][7] - Smaller and mid-sized enterprises are particularly vulnerable due to limited cybersecurity resources, while larger companies are investing in cybersecurity measures [7] - The evolving nature of cyber risks is compounded by reliance on third-party providers and the increasing threat landscape introduced by AI [7] Artificial Intelligence Risks - AI has emerged as a complex source of operational, legal, and reputational risks, with companies recognizing both its strategic opportunities and potential liabilities [9] - The rapid integration of AI into business operations is outpacing governance and regulatory frameworks, leading to heightened exposure to system reliability and data quality issues [9] - Concerns regarding automated decision-making and potential biases in AI models are becoming more pronounced as organizations scale their AI capabilities [9] Business Interruption and Geopolitical Risks - Business interruption is closely linked to geopolitical risks, with rising protectionist policies and regional conflicts contributing to uncertainty in global supply chains [10][11] - Political risks and violence have climbed to the seventh position in the risk rankings, reflecting growing concerns over geopolitical volatility [3][11] - Trade restrictions have significantly increased, affecting an estimated $2.7 trillion of merchandise, which is nearly 20% of global imports, prompting companies to explore alternative supply chain strategies [10]

🛡️Cyber risk & #digital resilience will drive ESMA’s Union Strategic Supervisory Priorities agenda in 2026.🤝 With support from national authorities and #DORA alignment, #ESMA calls for continued efforts on ICT risk management and effective supervision.https://t.co/1B5UDjTplC https://t.co/cOR6Dwtj4E ...

Economic Impact of Government Shutdown - The U.S. government shutdown is causing delays in key economic data, including the September jobs report, which is expected to heighten volatility and reinforce the Federal Reserve's data-dependency dilemma [2][5] - U.S. employers added only 22,000 jobs in August, with the unemployment rate rising to 4.3%, the highest since 2021, indicating a cooling labor market [1][3] Business Confidence and Planning - Businesses rely on official data for hiring, investment, and pricing decisions; the shutdown-induced data blackout undermines confidence and increases planning risk [3][5] - CFOs are advised to prioritize agility in scenario planning to prepare for market volatility and disruptions to federal contracts and operations [5] Employment Trends - In August, employers announced 85,979 job cuts, the highest total for that month since 2020, reflecting a challenging employment landscape [3] - ADP reported a decline of 32,000 jobs in the private sector for September, marking the first back-to-back monthly job losses since 2020 [4] Market Activity - E*TRADE reported that clients were net buyers across all 11 S&P 500 sectors in September, with consumer staples, utilities, and consumer discretionary sectors showing significant net buying activity [8][9] - Despite the defensive appearance of some buying activity, significant investments were made in nuclear power stocks and megacap stocks in the consumer discretionary sector [9] Risk Management Insights - Aon's Global Risk Management Survey indicates a rise in geopolitical volatility risks, now among the top 10 global risks, alongside cyber attacks and economic slowdown [11][12] - Only 14% of organizations track their exposure to the top 10 risks, highlighting a gap in risk management practices [12]

Group 1 - Markel Insurance has launched a new cyber insurance product that provides coverage of up to US$5 million for indirect losses resulting from acts of war [1][3][5] - The product addresses the growing concern of cyber risks, particularly for large organizations in critical sectors, as state-sponsored cyber threats are increasing in frequency and severity [2][6] - This new offering is designed as a wrap-around solution for corporate clients with existing cyber insurance policies, allowing them to cover gaps in war-related exclusions [4][6] Group 2 - The new product is part of Markel's response to the evolving needs of clients who require coverage for the indirect impacts of war on their cyber insurance [6][7] - Markel has allocated a fixed aggregate limit specifically for this product, indicating a commitment to addressing these emerging risks in the insurance market [5][7] - The initial limit of coverage is set at US$5 million per risk, with the potential for future expansion based on market demand [5][7]