ASIC Releases 2026 Key Issues Outlook, Impact of AI Top of Mind

ASIC has flagged insurance claims handling, AI-driven consumer harm and regulatory gaps as key priorities for 2026.

In its 2026 Key Issues Outlook, ASIC said artificial intelligence is reshaping financial services while fueling a surge in AI-powered cybercrime. The regulator said consumers face growing risks from automated decisions, AI-driven interactions and scams being amplified by technology. It has warned that there is “variable maturity” when it comes to businesses adequately dealing with AI-related governance risks.

For insurers, the focus is on catastrophe-related claims. Disasters in Victoria and Queensland recently underscore pressures from concurrent severe events that can lead to delays, errors and poor communications.

Beyond insurance, ASIC pointed to a system in structural transition, with private markets expanding and digitalisation accelerating, while changes to ASX governance requirements may reshape listed-company transparency and market confidence. It also warned that diverging global regulatory settings are fragmenting compliance and raising the risk of uneven consumer protections. Perimeter oversight of digital assets and payments remains a priority.

ASIC’s focus on the impact of technology and AI and regulation closely reflect the key drivers noted in NIBA’s groundbreaking Ready or Reacting report, that sets the agenda for the decade ahead.

NIBA’s research found brokers rank technology and automation, regulatory demands and the new risk landscape as the top disruptive forces to 2035. While 83% expect technology and automation to have significant impact, only 61% feel prepared. And although 86% anticipate increased regulation, just 62% say their business is prepared.

Read ASIC’s 2026 Key Issues Outlook here.

Know more insights from NIBA’s Ready or Reacting report here.