Financial Services & Insurance Pulse Survey 2025

UK Viewpoint

This report presents a UK-specific snapshot of the Financial Services and Insurance (FSI) sectors, based on Dun & Bradstreet’s latest survey of 2,000 senior professionals in key markets across Europe and in the US. It explores how 500 UK firms are responding to rising threats, evolving data challenges, and the accelerating pace of digital transformation.

While the full global report will provide a broader view across regions, this teaser focuses exclusively on UK-based insights—offering a preview of the sentiment of British firms and how they are preparing for the next 12 months.

Unpreparedness persists, but risk awareness is growing

UK financial institutions are increasingly aware of traditional and newer threats posed by third parties, especially cybersecurity, fraud, and financial risk. Despite increased investment in these areas, many are left feeling underprepared. Across both sectors, the most common barriers to mitigating risks are limited budgets and regulatory constraints, as well as difficulty in quantifying the risk from third parties.

UK Financial Services

• Top concerns: Cybersecurity (43%), fraud (39%), financial risk (37%)
• Preparedness gap: 39% feel unprepared for cyber threats; 32% for financial risk
• Investment trends: 70% increased cybersecurity spend; 66% for fraud; 62% for ESG

UK Insurance Sector

• Top concerns: Macro-economic and financial risk (36%), fraud (35%) 
• Preparedness gap: 33% feel unprepared for cyber threats; 28% for financial and reputational risk 
• Investment trends: 64% increased cybersecurity spend; 63% for fraud and compliance 

By investing in their own resilience and response to threats, financial services and insurance firms can also contribute to systemic risk management across the wider financial ecosystem.

Third-Party Risk: A Costly Vulnerability

Poor management of third-party risk is costing UK financial services and insurance organisations in more ways than one.

UK Financial Services

• 92% have suffered negative impacts from being unprepared for risks relating to third parties 
• Top consequences: Financial loss (44%), security breaches (36%), reputational damage (33%) 
• Average financial cost: Around $600,000 per incident

UK Insurance

• 88% impacted by third-party risk 
• Top consequences: Reputational damage (34%), financial loss (34%), increased staff turnover (32%) 
• Average financial cost: Around $800K per incident 

Interestingly, over half of UK financial services and insurance firms rely on search engines or AI tools to assess third-party risk—highlighting a need for more robust, integrated risk intelligence to support risk management and avoid penalties.

Data Quality and manual processes causing innovation bottlenecks

Despite organisations taking steps towards increased usage of AI and analytics, and ambitions of transformation with new technologies, poor data quality and manual workflows are stalling innovation across UK FSI firms.

UK Financial Services

• Only 38% feel they can effectively make informed decisions with their current data 
• 54% distrust their own data; 52% report failed AI projects due to poor data quality 
• Key processes remain mostly manual (48%) 

UK Insurance

• Just 30% feel able to make informed decisions with current data 
• 59% report duplicate records and data distrust: 56% experienced failed AI projects 
• Onboarding, retention, and marketing processes are manual in over 50% of UK insurers 

Data integrity is the foundation of digital transformation. Without it, AI and technology adoption will continue to falter.

2026 Priorities: AI, Digital Transformation & Risk Reduction

UK FSI leaders are prioritising technology—but risks posed by lack of information on third parties threaten to undermine progress. Many are looking to improve their data to enhance their ability to achieve their goals in the next 12 months.

UK Financial Services

• Top priorities for 2026: Internal AI use (39%), digital transformation (39%) 
• Top concerns: Cyber risk (54%), poor data quality (46%) 
• Support needed: New technologies (62%), better data (60%) 

UK Insurance

• Top priorities: Internal AI use (36%), third-party risk reduction (33%) 
• Top concerns: Cyber risk (49%), poor data quality (40%) 
• Support needed: New technologies (55%), consultancy (48%), better data (46%)

The ambition is clear—but success will depend on bridging the gap between vision and operational readiness.

The path to resilience is not linear. As firms prepare for 2026 and beyond, the ability to manage systemic risk, harness trustworthy data, and adopt AI responsibly will define the leaders of tomorrow.

This teaser offers a UK-centric preview of the full global report, which explores: 

• Regional variations in risk perception and investment in UK, Germany, Switzerland, Sweden and the US

• Sector-specific strategies for resilience

• Case studies of successful transformation

• Recommendations for leaders

Keen to understand how the UK’s financial services and insurance sector shapes up against its international peers? Click the button below to read the full, global survey.