Insurers need to focus on three interconnected imperatives to stay competitive in today’s evolving landscape that is driven by the push for stronger engagement, innovation and customer value, according to Capgemini Research Institute.
Top insurance trends in 2026 that align with the three key imperatives are:
Distribution and engagement
With 60% of customers willing to share personal data for tailored coverage, the shift from static to dynamic, personalised models is becoming essential. As competition intensifies, seamless omnichannel engagement and advisory-led interactions will be key differentiators for sustaining trust and lifetime value.?
With 67% of under-40 consumers seeking digital access alongside advisor support, modernising workflows is critical. Empowering agents with real-time analytics, unified customer data, and instant quoting tools enables faster, more personalised recommendations that deepen trust and drive premium growth.
- Opening the youth segment
Insurers are shifting from traditional life insurance to flexible, lifestyle-linked products that resonate with younger generations. With over 40% of under 40s looking for living benefits—like cash withdrawals for life events, and health and wellness benefits from insurers—repositioning insurance as an active financial tool is paying dividends.
- Collaboration for customisation
Today’s policyholders expect tailored coverage and consistent communication across touchpoints. To meet these evolving customer demands, insurers need to collaborate with healthcare providers to deliver personalised care pathways, guiding customers to chosen providers. This collaboration reduces service overuse and costs, strengthens trust, and drives better health outcomes—positioning insurers as leaders in customer-centric innovation.
Operational efficiency
AI in the insurance industry is changing the game. Insurers are transforming raw data into actionable insights for pricing, risk assessment, and personalised engagement. As digital ecosystems expand, real-time intelligence becomes essential for delivering customised experiences and sustaining competitive advantage.
Manual rule-based processes are being replaced by automated, AI-powered underwriting that accelerates decision making and improves accuracy. By leveraging predictive analytics and real-time data, carriers can offer instant quotes, dynamic risk assessment, and personalised coverage.
Escalating healthcare costs, fragmented care delivery, and rising demand for improved patient outcomes are prompting insurers and providers to pursue value-driven models. To keep pace, insurers are leveraging interoperable provider data and advanced analytics to integrate shared accountability, clear metrics, and aligned incentives into provider agreements—enhancing cost control, profitability, and value.
- Climate and catastrophe resilience
Risk concentration, regulatory requirements, and strict reinsurance terms propel insurers to adopt climate-resilient risk models.
Technological innovation
The shift away from outdated core systems in favour of cloud-native platforms continues. By modernising core systems and simplifying rigid architectures through cloud-native, GenAI solutions, carriers can launch new products faster and reduce operational costs.
- AI transformation at scale
2026 is the year that AI starts to drive serious value. By moving beyond pilots and scaling AI across underwriting, claims, and customer engagement, the insurance industry will unlock better efficiency and personalisation. Enterprise-wide AI will empower insurers to act in real time and proactively manage risks, driving improved performance and sustainable growth.
Today’s trends are tomorrow’s reality
The insurance industry is entering a transformative era where technology is more than an enabler—it’s the foundation for resilience, growth, and trust. In 2026, distribution and engagement, enhanced operations and technological innovation will redefine how institutions operate and engage with customers. M