Like many industries the global insurance sector has undergone significant transformation over the past few years - a trend that shows no signs of slowing.

However, this transformation has amplified the challenge of managing third-party risk as insurers expand their reliance on external partners to support their digital transformation initiatives. This, combined with increasingly complex insured risk profiles and more frequent global supply chain disruptions in recent years, means third-party risks have become more pronounced. 

While financial exposure has long been a primary concern, insurers now face a convergence of specific non-financial risks related to third parties, such as fraud, cyber threats, geopolitical instability, and operational vulnerabilities. Understanding and managing this combination demands a new level of resilience and oversight when it comes to key processes.

To understand the influence these emerging challenges are having, and to identify business priorities for the next 12 months, Dun & Bradstreet surveyed over 2,000 senior professionals in the Financial Services & Insurance (FS&I) sector across the UK, USA, Germany, Switzerland, and Sweden. Below, we explore the responses from insurers and brokers in these key regions.

The Preparedness Gap

The findings were clear: despite increased investment in cybersecurity, fraud prevention, and financial risk management, the global insurance industry feels more vulnerable today than it did 18 months ago. This research reveals a global preparedness gap, but with notable differences in threats and priorities by region.

• Insurance businesses globally cited cybersecurity as the threat that makes them feel most vulnerable, with 84% of insurance leaders in the UK and Switzerland reporting high levels of worry, followed closely by the USA (81%).

• Fraud risk is the next most pressing issue, cited among the top concerns for insurers in all regions. Switzerland leads with 87%, followed by the UK (83%) and the USA (69%). Despite this, 17% of firms in Switzerland admit they have decreased investment in this area over the last 18 months.

• Geopolitical risk weighs heaviest in the UK (83%), while Sweden (80%) and Switzerland (79%) are less concerned, but still recognise the substantial impact of external conflicts on operations.

Together, these pressures have created a “perfect storm” of digital, operational, and external risks that insurers are looking to address.

Shifting Strategic Priorities

While cyber risk continues to dominate the near-term agenda, over 60% of insurance firms are more concerned about the following non-financial risks than they were 18 months ago:

• Fraud risk is more of a concern than it was 18 months ago particularly for insurers in Sweden and Switzerland (75%), followed by the UK (71%). 

• Competitor risk has risen fastest among insurers in Sweden (72%) and the UK (71%). 

• Strategic risk has risen fastest in Switzerland (75%) while 54% of insurers in the USA are more concerned compared to 18 months ago.

• Insurance firms in Switzerland (78%) and Sweden (73%) have seen concerns surrounding macro-economic risk increase more than other markets. 

This shift highlights that insurance industry leaders are not only focused on safeguarding operations, but also on preserving trust in an increasingly volatile environment.
 

Investments Rising but Gaps Remain

Across all markets, insurers have increased investment in cybersecurity over the past 18 months. Fraud is also a major focus area with 63% of firms having boosted their investment over the past year and a half. This has been led by Sweden where 75% of insurers are increasing investment in fraud prevention. Additionally, operational risk management (including supplier risk) has been prioritised by 75% of insurers in Switzerland, 70% of firms in the UK, 69% in Sweden and 67% in the US, but only 48% in Germany.

However, despite this increased spending, many insurance firms still feel unprepared for fraud risk, creating a significant preparedness gap.

The financial implications are significant. More than one in four insurers (43%) in the USA have suffered financial loss from non-financial risk costing on average almost $400,000. However, firms in Germany have been hit hardest with the average cost per incident cited as more than $2,000,000.

A Data Quality Crisis on the Horizon

Perhaps most concerning is the emergence of data quality as a top-tier risk for insurance firms in 2026 - especially in Switzerland, where 52% of firms now list it as a leading concern.

This represents a fundamental shift: while insurers have invested heavily in digital transformation, and many are looking to introduce AI internally or to support customer experience in 2026, many are struggling with the reliability, accuracy, and governance of their foundational data. Without trustworthy data on which to base decisions on who to trust, risk management, fraud detection, and regulatory compliance are all compromised.

• 79% of insurers in Switzerland and 64% in Sweden say they distrust their own data.

• In the UK, 71% report challenges with duplicate information.
   

What’s Next?

While 43% of the insurers surveyed in our report currently use third-party data processes to support their key processes, 46% recognise they need to start, or increase their use of support from external providers to help with data accuracy and trust.

To thrive amid risk challenges, insurance businesses must continue to address evolving threats across their digital and operational landscapes. Those that invest in clean, connected, and compliant data will be best positioned to manage risk now and prepare for what may come down the line.