As insurers move into 2026, they face an environment defined by compounding volatility: geopolitical shocks, inflationary aftereffects, and structural changes in distribution, capital markets, and customer expectations. The traditional boundaries between insurers, distributors, asset managers, and technology providers are dissolving, while the cost and competitive pressures of a softening cycle intensify. (1) 

Yet amid these pressures, a clear direction is emerging: 2026 will be the year when AI transitions from experimentation to enterprise integration. 

Insurers across Europe are shifting from debating AI’s potential to actively deploying it in underwriting, claims, distribution, fraud detection, portfolio optimization, and customer operations. However, according to Deloitte Research Center the real differentiator is no longer AI itself—it is data architecture, digital infrastructure, and the ability to scale intelligent technologies safely and at speed (2). 
This creates a window of opportunity for collaboration with fintech innovators positioned to strengthen insurers’ data foundations, build modular digital ecosystems, and accelerate AI deployment without compromising compliance or security. 

 

P&C Insurance in 2026: Margin Pressure Meets the Rise of Predict-and-Prevent Technology

The prolonged hard market appears to be easing, but the underlying pressure remains. Globally, P&C (Property and Casualty Insurance) premium growth is expected to slow through 2026 amid intensifying price competition, weaker rate momentum, and rising trade-policy-driven costs. (1) 

In Europe, ROE gains are forecast—up from 9.1% in 2024 to 11.6% in 2025—primarily due to easing cost pressures.Yet this relief is fragile: supply chain disruptions, labor shortages, geopolitical conflicts, and inflation continue to push claims severity higher (1). The P&C sector must therefore pivot from pure risk transfer to risk prediction, prevention, and real-time mitigation (2) . 

Across personal and commercial lines, the opportunity for insurers lies in: 

  • AI-powered risk modeling, informed by satellite imagery, IoT sensors, drones, and geospatial data. (3-4)  
  • Automated claims triage, enabling faster FNOL, routing, and fraud detection.(2) 
  • Predict-and-prevent products, where real-time data reduces losses and creates new recurring revenue opportunities. (2) 
     

    2026 will mark the shift from traditional indemnification toward intelligent protection ecosystems. 

 

AI at Scale: The Defining Competitive Edge for Insurers in 2026 

According to Deloitte Research Center 2025 was the year of pilots; 2026 will be the year of industrialized AI.  But the gap between leaders and laggards is widening due to legacy systems, data sprawl, and internal talent constraints. Insurers now recognize that AI success depends on: 

1. Data quality and governance

Fragmented data remains the biggest barrier to scaling AI insights across underwriting, pricing, and claims. Standardization and master data management are essential. 

2. Modernized architecture & cloud adoption

Insurers are now adopting hybrid cloud strategies, modular cores, and GPU-enabled actuarial modeling. ( 5-6) This shift supports both computational intensity and rapid model development. 

3. Secure deployment 

Cyber risk is rising as digital connectivity expands, with major breaches underscoring the need for robust third-party vetting and zero-trust security models.

4. Responsible AI frameworks 

Regulators in Europe, Asia, and Latin America are encouraging innovation but expect explainability, fairness, and strong model governance. (7)  Fintech partners with domain-specific AI capabilities, compliant architecture, and strong data integration frameworks will be essential for insurers in 2026. 

 

Human + AI Collaboration: The Workforce Reinvention Imperative 

AI transformation is not only about automation—it requires a complete redesign of work.  Insurers face acute demographic and talent challenges: 

  • retiring experts, 
  • difficulty attracting young digital talent, (8) 
  • mid-career employees embedded in legacy systems, (8) 
  • and new hires trained in AI who are not yet deployed in AI-driven roles. (8) 

In 2026, insurers must adopt workforce strategies rooted in human-machine collaboration, including: 

  • targeted reskilling toward AI-assisted decision-making, 
  • behavioral science capabilities to enrich customer interactions, 
  • gig and partner networks to fill specialized skill gaps, 
  • redesigning workflows to embed AI into daily roles. (8-9) 

The insurers that thrive will be those that empower employees, advisors, and customer-facing teams with AI-assisted tools—not those that merely automate tasks. 

 

Customer Experience in 2026: Hyper-Personalization, Empathy, and Intelligent Channeling 

Customer expectations continue to rise across Europe, shifting from static policy interactions to dynamic, connected experiences. According to research, insurance is increasingly judged not solely by payout but by speed, personalization, transparency, and empathy (2). 

Key CX trends for 2026 include: 

  • Hyper-personalized recommendations supported by behavioral analytics and continuous data flows. (10-11) 
  • Right-channel orchestration—steering customers intelligently to digital, hybrid, or human channels based on intent. (10-11) 
  • Embedded prevention services, particularly in P&C, using IoT and real-time underwriting. (10-11) 
  • Human-AI advisory, where agents use AI-driven support, insights, and scripts to deliver more empathetic service. (10-11) 

Fintech ecosystems—particularly those enabling omnichannel orchestration, embedded insurance, and real-time analytics—will be essential for insurers looking to modernize CX. 

 

Conclusion: 2026 Is the Year to Build an AI-Native Insurer 

The insurance industry is entering 2026 facing structural complexity, emerging climate and legal risks, distribution consolidation, and rising customer expectations. Yet the real competitive divide will be defined by technology—specifically, the ability to integrate AI, data, and digital infrastructure into every layer of the business. 

To remain profitable and relevant, research encourages insurers in Europe to: 

  • Invest in modernization and quality data. 
  • Transform the workforce for human-AI collaboration 
  • Forge strategic partnerships with fintech and insurtech innovators 
  • Elevate customer-centricity through personalization and intelligent channeling
  • Shift to proactive, predictive risk management models 

The future of insurance is not “digital”—it is AI-native, data-driven, and ecosystem-powered.  2026 is the year insurers must move decisively from exploration to execution. The future of financial digitalisation is more about building shared ecosystems where technology, governance, and expertise work smoothly alongside each other.

 

Sources: 

  1. Roopali Aggarwal et al., “Sigma 2/2025: World insurance: A riskier, more fragmented world order,” Swiss Re Institute, July 9, 2025. 
  2. Deloitte. (2025a, October 30). 2026 global insurance outlook. Deloitte Insights. https://www.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/insurance-industry-outlook.html  
  3. Barry Chen, Doug Sweeney, and Matt Hutton, “2025 Insurance M&A Outlook,” Deloitte, March 27, 2025. 
  4. Sandee Suhrada, Anshumita Sen, Napoleon Howell, and Rohan Shinde, “Implications of generative AI for insurance,” Deloitte, Nov. 3, 2023. 
  5. Belinda Wong, “Manulife leads the charge in generative AI innovations: Enhancing productivity and elevating customer experience,” Manulife, Oct. 2, 2024. 
  6. Jessica Yeung, “IA’s insurtech initiatives for 2025,” Insurance Authority, March 26, 2025. 
  7. Caroline De Souza and Fernando Casanova, “Latin America market report 2024: Growth to decelerate as global risks rise”, Swiss Re Institute, Nov. 12, 2024. Deloitte subject matter specialist analysis. 
  8. Deloitte, “Deloitte’s ‘2025 Global Human Capital Trends’ aims to help leaders navigate complex workplace tensions,” March 24, 2025.  
  9. Discussion with Deloitte subject matter experts Tina Whitney, Andy Liakopoulos, Kedar Kamalapurkar, and Nicole-Scoble Williams. 
  10. Leonne Jongejan, “Reinventing customer service, holistically,” Deloitte, July 2, 2024. 
  11. Sandee Suhrada, “Framing the future of insurance and generative AI,” Deloitte, Dec. 4, 2024. 
Maria Ceruti
Maria Ceruti
Maria Ceruti joined Gambit Financial Solutions as a Product Marketing Specialist, where she played a pivotal role in building the company’s marketing ecosystem from the ground up. Her responsibilities spanned product positioning, communications, content strategy, and event coordination. She successfully integrated ESG narratives and compliance themes into the company’s messaging, enhancing Gambit’s visibility in both the financial and fintech sectors. Her contributions bridged product innovation with thought leadership, reinforcing the brand’s credibility and relevance.