Premium affordability has emerged as a primary concern, moving from sixth place in 2025 to the top spot in 2026. Factors contributing to this shift include rising inflation, increasing climate-related losses, and regulatory pressures. These elements are influencing how premiums are priced and the extent of coverage available, potentially leading to higher costs for policyholders.
Cybersecurity remains a significant issue, maintaining its position as the second most pressing challenge for insurers. The increasing reliance on digital and cloud-based systems has expanded the potential exposure to cyber threats. Data from the Office of the Australian Information Commissioner indicates that in the first half of 2025, malicious or criminal attacks accounted for 59% of reported data breaches, with an average of over 10,000 individuals affected per incident.
Workforce challenges have also intensified, with the difficulty of attracting and retaining employees now ranking third, up from seventh in the previous year. Changing workforce expectations and skills shortages are key issues, particularly as insurers become more digital and customer-focused.
For personal trainers and small business owners, these developments have direct implications. Rising insurance premiums can impact the affordability of necessary coverage, while increased cyber threats highlight the importance of robust cybersecurity measures to protect sensitive client information. Additionally, workforce challenges within the insurance industry could affect the quality and availability of services provided to policyholders.
To navigate these challenges, personal trainers and small business owners should consider the following strategies:
- Regularly review and compare insurance policies to ensure they are getting the best value and coverage for their needs.
- Implement strong cybersecurity practices, such as regular software updates, employee training, and data encryption, to safeguard client information.
- Stay informed about industry developments and regulatory changes that may affect their insurance coverage and business operations.
In conclusion, ASIC's identification of key risks for insurers in 2026 underscores the need for personal trainers and small business owners to be proactive in managing their insurance needs and cybersecurity practices. By staying informed and implementing appropriate strategies, they can better protect their businesses and clients in an evolving risk landscape.
