The forecasts for next year are based on a variety of proprietary Sollers data, supplemented by external sources. In view of the increasing commercial pressures, insurance markets will be characterised by a drive for efficiency and economies of scale.
2026 will be a decisive year for cloud technology in the insurance industry, emphasises Sollers Consulting in its prediction report ‘A breakthrough year for cloud in the insurance industry’. According to Sollers research, cloud-based systems are becoming the norm, driven by the need for operational flexibility in the insurance industry and innovations on the part of IT providers. In its outlook for 2026, the Sollers report analyses the labour markets and the demand for skilled workers at 123 insurance companies in ten markets. The report integrates various proprietary and external data sources. Previous forecasts had an accuracy rate of more than 91%.
‘The adoption of the cloud is progressing at different speeds,’ comments Michal Trochimczuk, President of Sollers Consulting. ‘Markets such as Australia, New Zealand and the UK are developing rapidly, while Japan and continental Europe remain more cautious. Cloud infrastructure offers flexibility and security, but many insurers are still learning how to fully exploit its economic potential.’
In 2026, the insurance sector will enter a phase of consolidation and make targeted investments. According to the report, extensive M&A activity in the UK, German-speaking markets, the Nordic countries, Australia and Japan is expected to spread to Central and Eastern Europe. Insurers will prioritise simplification and automation to achieve economies of scale.
Here is a selection of the forecasts mentioned in the Sollers report:
Health insurance will emerge as the most dynamic business area.
Profitability will decline due to lower investment income.
Regulatory control will remain high in the areas of claims settlement and pricing.
The year 2026 will be characterised by a more cautious approach to digitalisation.
The technological gap between market participants will widen.
One of the main drivers for cloud computing in the insurance industry will be artificial intelligence.
In response to a more challenging market environment characterised by falling insurance rates and lower interest rates, insurers are expected to increase their spending on technology. System integration will be an important focus in most markets. The report highlights that process automation and self-service solutions will be expanded in the retail business, while more commercial insurers will use underwriting workbenches to leverage automation tools.
‘As insurers extend digitalisation to areas beyond traditional economies of scale, AI offers transformative potential – making underwriting not only more efficient, but also more accurate and sophisticated,’ Trochimczuk emphasises.
Technology-driven efforts to increase efficiency are being driven by slower economic growth. This is likely to have a dampening effect on premium growth and profitability, notes the Sollers report. As pressure on insurance premiums increases and claims inflation remains high, technology will become increasingly important.
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