“The insurance industry has always been shaped by cycles, but the pace of change today is different because of multiple forces compounding simultaneously. Volatility, shrinking margins and shifting risk profiles have brought pricing and underwriting to the forefront, with collaboration across functions now central to how carriers compete and deliver profitability. At the same time, AI-driven technological change offers a genuine opportunity to achieve both efficiency and profitability gains, and is driving ‘in-production’ results faster than any technology in history. Recent industry findings highlight that transformation is already in motion, but the real challenge is how effectively insurers can connect data-driven underwriting insights with operational execution.
Technology and talent as differentiators
“As we look ahead to 2026, the question is not whether insurers invest in technology, but how intelligently they do so. Pricing and underwriting are now recognised as the critical engines of decision making, and the winners will be those who modernise their infrastructure to unlock value. AI is moving beyond hype into practical adoption, embedded across workflows to enhance quality and depth of insight, speed and confidence. The fear of replacement is fading as actuaries and underwriters increasingly see AI as a collaborator, amplifying human expertise rather than substituting it. Upskilling and AI fluency are becoming essential, ensuring talent can focus on judgement, innovation and experimentation with new data sets.
From efficiency to performance
“Efficiency gains will remain important, but they are no longer the differentiator. The true measure of success will be portfolio performance and the ability to steer towards profitability in a softening, highly competitive market. That requires investment not only in automation, but in equipping teams with the skills and tools to make sharper, data-driven decisions.
The next phase of transformation
“By 2026, insurtech ecosystems will expand further, simplifying data exchange and reducing friction across the market. Intelligent automation will relieve the burden of manual tasks, while AI powered platforms will connect the underwriting workflow end to end. This cultural shift towards collaboration between human expertise and cutting edge tools will advance the frontier of what is possible in insurance. The tools, talent and ambition are already in place. The next phase of transformation will belong to those who connect them, moving beyond winning business at all costs to meaningful and measurable profitability advantage.’’
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