Actuaries Institute Calls for AI, Climate Reforms in 2025-26 Budget

The Actuaries Institute's 2025-26 Pre-Budget submission emphasizes the need for Australia to enhance economic resilience and social equity through strategic investments in climate adaptation, healthcare, and education. It highlights five key areas for government action, including tax reform to address inequality and the importance of a strong STEM workforce for future capabilities. Meanwhile, a recent report reveals that artificial intelligence has emerged as the top risk for the global insurance sector in 2025, overtaking sustainability concerns. Partner responses from the global law firm Kennedys indicate that AI adoption, alongside cyber threats and extreme weather, will significantly impact the insurance market in the coming years. Furthermore, social inflation is a growing concern in the U.S., where it ranks among the top issues cited by insurance professionals. This shift underscores a broader trend in the industry as it grapples with evolving risks amid economic volatility and technological advancements.