Predictions AI Insurance: The Future of Pricing -

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OK, AI doesn’t have to make all the insurance sector decisions, let’s get that straight from the start. But next year will surely see more automated pricing, renewals, reinsurance and claims processing. It has to be progressive, managed and compliant of course. Caution has be balanced against the excitement of embracing the future, but it’s here. Insurers, brokers and MGAs can all play a part in building an industry that serves the customer faster, and more accurately, more personally, than ever before.

Let’s get some comments;

PEGASYSTEMS

Manoj Pant, Senior Director, Strategy and Solutions, at Pegasystems

Agentic AI
- “Gartner is predicting that by 2028, Agentic AI will enable 15% of day-to-day work decisions to be made autonomously. In 2026, the adoption of Agentic AI will accelerate in insurance unlocking massive potential for both insurers and customers.
- AI is enabling insurers to eliminate routine administrative duties, and potentially delivering more accurate outcomes at a lower cost. It is transforming underwriting by accelerating risk assessment and policy approvals, alongside automating claims processing and settlement, delivering real-time empathetic customer service in line with rising consumer expectations, and proactively detecting fraud.
- That said, insurers must ensure that alongside this adoption in 2026, they invest in legacy modernisation, as fragmented, poor-quality data can make it difficult to train reliable AI models. Some critical information remains unstructured and historical insurance data (e.g., handwritten claims, voice records) is hard to process without significant pre-cleaning. Having clean, integrated data, supported by strong governance and compliance frameworks is critical for AI success in the coming years.”

SUPERCEDE

Jerad Leigh, co-founder and CEO of Supercede, the leading reinsurtech for cedents and brokers, provides his predictions for 2026

Opportunities:

Technology will power more Cedent-centric collaboration, driving growth with challenger brokers

Historically, brokers have focused their technology efforts on building powerful analytics engines, tools to help evaluate and interrogate portfolios and software that determines the most effective use of capital for a cedent. All of that is essential work and leverages the unique expertise and positioning of the reinsurance brokers; however, it’s also work that’s done behind the scenes and within the walls of the broking house.

The experience for cedents has been to send data to their brokers, wait for a few days or weeks, and then be presented with a summary and a strategy on how they should approach the upcoming reinsurance purchases. But as cedents become increasingly technical (powered by their own innovation efforts), they’re demanding that they be included more in this process and treated as an active collaborator. This isn’t going unnoticed by brokers, either.

Every challenger broker that we speak with has set goals of being more cedent-friendly, collaborative, and easy to work with. They see the need to meet the cedents where they are and build collaboration into their core value proposition. Leaders of challenger brokers have come from the big two; they have seen where those solutions have been positioned and know first-hand the size of the opportunity if they focus on finding ways to get closer to their clients. But they also know that cedents don’t want countless different portals or ways to work with each broker. They’re leaning into solutions that are designed to be collaborative and that their cedents are already using. And they’re seeing it unlock opportunities to win new clients and grow their business with existing clients.

Cedent-centricity and cedent-collaboration will be a key theme for 2026.

DON’T BELIEVE THE HYPE, BELIEVE THE RESULTS, SAYS FEDERATO

It’s easy to get carried away with AI pilots, agents, data lakes and the latest whizz-bang buzzwords. Let’s see what 2026 actually delivers in terms of the bottom line.

Will Ross, Co-Founder and CEO of Federato, the AI-native platform that changes the way insurance work gets done, shares his 2026 predictions below;

“Serious dissatisfaction with the status quo. Executives get magic when they use ChatGPT at home, but they’re not getting it from the AI added to the old core.”

As for what he sees as the biggest emerging AI trends in insurance for 2026, he says:

“We’ll see the end of small-scale, go-nowhere AI pilots bolted on to legacy systems. It’s obvious now they aren’t delivering ROI — or anything at all, really. The rise of context as king. AI is only as smart as the data it can use.“

DIGITAL WORKFORCE

AI and tool,s like ChatGPT can help improve customer relationships, says Karli Kalpala, Head of Strategic Transformation & Financial Services Industry at Nasdaq-listed Digital Workforce

Public perception of AI shifted in 2025 compared to the initial ChatGPT hype

“The conversation around AI in 2025 has shifted from hype to an acceptance that the technology is no longer just a productivity tool. Large institutions, such as major banks, have introduced generative AI-based agents and solutions to their end customers, proving that we’ve passed the tipping point. Looking ahead, businesses are increasingly prioritising employee upskilling and the integration of AI tools and agents into day-to-day operations.

Previously, there was some hesitation about allowing end customers to engage in free-flow chat with generative AI solutions due to concerns around prompt injections and associated risks. Today, customer calls and chats can be driven by AI, with humans remaining in the loop as a safety measure, and organisations are embracing this more autonomous approach.

Upskilling employees to use and manage AI responsibly will become a key priority in 2026. Companies will need to ensure their teams are AI-literate across departments and workflows, able to collaborate effectively with autonomous agents, and able to oversee the platforms they adopt.”

Industries moving fastest on AI adoption, and those lagging behind

“Large institutions and organisations in financial services and healthcare have been the most visible movers this year, particularly in deploying customer-facing AI solutions. The key shift has been moving from internal process automation to customer-facing applications, which signals a commitment to transformation.

This momentum will accelerate in 2026 as AI becomes further embedded across customer interactions, compliance and decision-making processes. However, business and tech leaders should recognise that speed of adoption isn’t solely about technology deployment. The fastest-growing industries are those whose leaders understand that progress requires change management, process redesign, and people transformation. Those lagging behind are often stuck in the pilot phase, treating AI as a productivity tool instead of recognising that most of the work involves people and processes, not just the technology itself.”

CARPE DATA

LLM Wrappers on Bad Data are Lipstick on a Pig – says Scot Barton, Chief Product Officer

In 2025 we were introduced to “vibe-coding,” and systems that once required full engineering teams or top-tier design talent became easier to implement, delivering sleek interfaces and fast, intuitive workflows. This innovation spurred both opportunity and concern for insurers. While the sky-high promises of speed and efficiency from AI technology was alluring, many of the “AI-first” firms offering solutions to insurers’ challenges turned out to be little more than GPT wrappers with a fancy UI.

Looking forward to 2026, insurers will demand substance over style from technology vendors. Chatbots and glossy UIs don’t matter if the underlying product is built on generic data that can’t deliver meaningful value. Insurers need differentiated insights backed by real industry experts to plug into their own models. As a result, future technology investments will be won by firms with the strongest data foundations and custom models that are proven to produce immediate, actionable insight. Anything less is just lipstick on a pig, and insurers aren’t buying it.

EIP

Let’s end with some insights on AI and parametric cover from Ross Sinclair, founder and CEO at embedded insurance tech provider EiP;

Increased use of AI in insurance

“As AI adoption continues to gather pace across all financial services, insurance is no exception. Throughout 2026, we expect to see insurers shifting from AI experimentation to scaled deployment. In particular, Voice-led AI will become more commonplace throughout the industry, especially in non-regulated customer interactions.

“However, AI is not a silver bullet for the insurance industry. While there are significant benefits to its use in underwriting, fraud detection and customer service, there are certain regulatory dangers in allowing machine learning to make regulated claims decisions. The firms that come out on top will be those who balance AI implementation with operational oversight, transparency, consistency and auditability.”

Parametric insurance will shift from niche innovation to industry mainstream

“Throughout 2026, demand for parametric insurance products that pay out automatically once certain triggers are met will increase significantly. This will be significant within the renewable energy industry, wherein global warming and extreme weather events continue to increase.

“The rise in parametric insurance coincides with shifting customer expectations, moving the onus away from the customer for making the claim and responding to demands to improve the speed of claim settlement processes.”