We're proud to announce the release of the fourth annual edition of The Carrier Perspective: 2026 Claims Insights, which is available now. Our complimentary industry-leading whitepaper examines the evolving risks, regulatory and economic pressures, workforce challenges, and technological advancements that are transforming the Australian insurance market.
Built on the responses of 250 industry leaders across Australia, North America, and the UK, and spanning traditional insurers, managing general agents, and underwriting agencies, the 2026 Claims Insights whitepaper also offers a balanced insight into the challenges and strategic responses shaping the global insurance industry today.
For Australian respondents, premium affordability and insurability emerged as the foremost challenge, with nearly one in four ranking it their top concern for 2026. This result reflects the compounding pressure facing insurers as they strive to maintain profitability while preserving market accessibility.
Data and cybersecurity followed closely at 20%, while talent attraction and retention ranked third.
Join us as we take a closer look at the data-driven insights that reveal the operational and strategic challenges reshaping the Australian insurance landscape, and access your complimentary copy of The Carrier Perspective: 2026 Claims Insights to discover more about the strategic responses being employed by industry leaders to counter these trends:
Claims are getting more complex, expensive, and frequent. Over the past year, 74% of insurers reported an increase in claim complexity, while 70% observed higher costs per claim and a surge in claim frequency.
Medical inflation identified as a key cost driver. Fifty-eight percent of Australian respondents identified medical inflation as one of the leading contributors to rising claims-related costs, pushing treatment and rehabilitation expenses beyond actuarial expectations.
Technology and AI emerge as a key driver of and defence against fraudulent claims. Sixty-two percent of Australian insurers said technology-enabled fraud and AI manipulation are significantly increasing cost pressures, with 70% countering fraud-related challenges using AI and digital tools.
Economic instability is driving product innovation and geographic expansion. To counter economic volatility and trade and tariff impacts, 60% of Australian insurers are targeting new industries to capture growth, particularly in sectors less exposed to tariff-sensitive conditions, while one in three is expanding into new geographic regions to reduce concentration risk.
AI adoption is high, but concerns and barriers to adoption also remain prevalent. The number of Australian insurers adopting AI for claims resolution reached 74% in 2025, surpassing the global average of 68%. However, regulatory risk, lack of trust in accuracy, and skills and talent gaps represent significant barriers to adoption, with regulatory risk concerns ranking higher in Australia than any other region.
Talent shortages raise increased concern for Australian insurers. Over three-quarters of Australian insurers experienced difficulties finding qualified candidates over the last 12 months. To overcome these challenges, 68% of respondents are looking to increase investment in training and development, a significant increase from 48% in 2025.
The Carrier Perspective: 2026 Claims Insights paints a clear picture of the forces influencing the Australian insurance industry. Get your copy for more indispensable insights and strategies to help insurers stay ahead of the curve in Australia's rapidly evolving insurance landscape.
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