What to Expect in 2026: Our Leader’s Insights for the Year Ahead

As insurers prepare for the challenges and opportunities of 2026, our leadership team shares insights and predictions to help navigate the road ahead. From adapting to evolving customer expectations and addressing the complexities of shifting regulatory landscapes to embracing the transformative power of technology, here's how insurers can stay ahead.

Maintaining a Competitive Advantage Through Personalisation

While many insurers have embraced the benefits of generative AI and technology, the value of human understanding cannot be overstated. In fact, our team has observed an uptick in demand for human expertise in response to generative AI, with greater focus on soft skills such as communication, adaptability, and emotional intelligence.

According to Manan Sagar, CEO of Gallagher Bassett Europe, Middle East, and Asia, "As the use of these tools continues to proliferate, I see the role of the TPA evolving into something more geared towards negotiation, flexibility, and relationship building, the human elements of our job."

Katie Lamb, general counsel at Gallagher Bassett Europe, Middle East, and Asia, draws a similar conclusion, "The key to success will be how these advancements are complemented by human expertise and judgement. At Gallagher Bassett, we've seen that technology doesn't replace people, it empowers them."

Striking the right balance between technological precision and human insight will therefore be crucial in 2026, as personalised solutions become a key metric for service excellence.

"Clients now expect more than tailored products; they expect bespoke, proactive support, delivered through true partnerships." said Sarah Penny, Gallagher Bassett's Client Services Director.

For Sam Moore, managing partner at Caytons — A Gallagher Bassett Company, these true partnerships nurtured through soft skills that determine success. "With increased competition for insurers and MGAs operating in the market, the level of service provided to brokers and policyholders needs to be first class."

Insurers looking to maintain or gain a competitive edge in 2026 will need to balance technology's efficiency, speed, and accuracy with human expertise and experience to build strong relationships that will carry insurers through 2026 and beyond.

External Stressors Driving Claims Volumes and Complexity

Despite the insurance industry's agility, unexpected challenges continue to drive claims volumes. This year, Ashley Easen, managing director, Consulting Solutions, is predicting an evolution in these challenges, as insurers witness shifts in the regulatory landscape and extreme weather patterns impacting claims.

"A significant change I expect SMEs to navigate in 2026 is an increasing volume of claims, arising through changes in legislation such as Awaab's Law impacting the social housing sector and an increase in frequency and severity of weather events."

Simon Hoskin, managing director, Claims and Loss Adjusting, echoes this sentiment, stating, "Issues such as airport fires and climate-related events have significantly increased delayed departure and missed departure claims. Wildfires across Europe have also led to uninhabitable accommodation and widespread trip cancellations, further driving claims volumes."

When it comes to compliance, he cites the evolving demands of the FCA's Consumer Duty regulation as being particularly influential, with insurers likely to face greater scrutiny around how claims are handled.

"Claims processes will need to become even more customer centric. SMEs will need to ensure their claims teams are equipped to meet these heightened expectations," Hoskin said.

As claims pressures intensify, the volume and complexity of claims are expected to put a strain on internal resources, highlighting resource gaps and vulnerabilities that, if left unchecked, will affect claims outcomes.

"We have witnessed an increase in requests for our burst resourcing service to support the handling of excess claims and relieve pressure for in-house teams," Easen said.

Insurers who anticipate disruptions, manage resources effectively and invest early in scalable, robust support will be better equipped to manage rising claims volumes and deliver superior outcomes.

Technology's Continued Importance in 2026

Following a year of unprecedented advancements in generative AI and data analytics tools, the question for 2026 is not whether technology will continue to disrupt the insurance landscape but how.

Once key to gaining a competitive advantage, Anthony Smith, CEO of W K Webster and Co, a Gallagher Bassett Company, believes expectations have changed: "Tech isn't just an enhancement; it's become a baseline expectation. Our clients now expect us to deliver faster, smarter processes, driven by automation, AI triage, and real-time data validation."

For John Fearn, COO of Gallagher Bassett, while the rapid advancements in generative AI and predictive analytics have strengthened decision-making, it has also produced an expectation for frictionless, instantaneous results, and insights.

"SMEs should prepare for a market where insurers increasingly use real-time data and IoT (Internet of Things) devices to assess risks and offer tailored coverage options. This change will require SMEs to be proactive in adopting technology within their operations, as insurers will likely prioritise businesses that can provide accurate and actionable data."

Proactivity will be particularly important for countering fraud, where the growing incidence and sophistication of fraudulent claims propelled by emerging and accessible technology necessitates equally advanced approaches to detection and mitigation.

Chris Sturridge-Packer, director at Strata Solicitors — A Gallagher Bassett Company, said: "Our efforts to combat fraud continue, and one thing we all need to prepare for is the increased use of AI to facilitate fraudulent claims, staying one step ahead."

Technology's role in 2026 is only expected to grow, facilitating more efficient, accurate, and innovative solutions to complex claims management problems.

As challenges evolve and expectations shift, insurers looking to increase market share and gain a competitive advantage can achieve this by remaining agile and proactive. Whether it's delivering tailored and personalised solutions, adjusting internal resources to address the volume and complexity of claims or harnessing the power of emerging technologies, embracing change will help insurers thrive. Connect with our team to learn more about what lies ahead in 2026.