The People Risk 2026 report highlights a shift in how risk originates and spreads across organizations, with workforce-related factors now acting as primary drivers of loss. According to the report, inadequate cyber threat literacy ranks as the top global people risk, with more than 70% of organizations experiencing at least one material third-party cyber incident in the past year. For claims adjusters, this reinforces that many cyber losses stem from human error rather than system failure, affecting liability, E&O, and cyber policies.
Artificial intelligence is another emerging exposure. The report notes that many organizations are investing heavily in AI but failing to redesign workflows, creating inefficiencies and new risks such as data mishandling, bias, and system failures. Adjusters should expect more claims tied to AI-driven errors, including professional liability, product liability, and regulatory actions, especially where governance and training lag behind implementation.
Labor shortages and leadership gaps are also identified as major risk multipliers. On pages 19â€"20, the report explains that inadequate leadership skills can trigger downstream risks like unsafe working conditions, poor decision-making, and mental health deterioration. For claims professionals, these conditions often correlate with increased workplace injuries, workers' compensation claims, and operational losses tied to poor oversight.
Employee financial insecurity ranks as the fourth-highest global risk and has direct implications for claims frequency. Financial stress can lead to distraction, errors, and even misconduct, increasing the likelihood of workplace accidents and fraud-related claims. The report also notes that financially stressed employees may be more vulnerable to phishing and social engineering, raising cyber claim exposure.
Climate and environmental risks are another key takeaway. While ranked lower in perception, 77% of employees report being affected by climate events, which disrupt workforce availability and slow recovery after losses. For adjusters, this translates into longer claim cycles, higher business interruption costs, and more complex recovery scenarios when employees themselves are impacted.
Health risks remain underprioritized despite their operational impact. Mental health deterioration is a top-10 risk, yet many organizations lack effective support systems. This gap contributes to absenteeism, reduced productivity, and increased workplace incidents. Adjusters should view health-related workforce issues as leading indicators of future claims, particularly in workers' compensation and liability lines.
The report emphasizes that organizations with higher 'risk maturity' outperform peers in mitigating workforce-related exposures. These organizations integrate risk management into decision-making and are better positioned to reduce claim frequency and severity through proactive controls.
