Predictions 2026: Broking, Underwriting and MGA Sectors -

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Next year will see the acceleration of AI across underwriting, pricing risks, and in turn an impact on the MGA and broker sectors. Let’s get some thoughts from across the industry;

PIB

Martin Lacey, Chief Broking Officer at PIB Insurance Brokers:

“Across many specialty classes we’re clearly moving into a softening phase, driven by increased capacity and selectively improved reinsurance terms for non-catastrophe exposures. Over the next 9–12 months we expect the softening market to continue in the UK specialty arena, albeit at a reduced pace, with challenging and claim-affected risks continuing to attract firm pricing.

“Competition is intensifying for well-performing portfolios, and brokers are beginning to regain leverage after several insurer-led years. We are seeing greater flexibility, not only in terms of price but also on coverage with lower retentions and a willingness from insurers to offer multi-year arrangements.

“Clients are mainly focused on price, but they are not looking to compromise on carrier stability or claims performance. For clean books, there is a clear appetite for material reductions and broader cover.

“We anticipate healthy competitive tension rather than a slide into undisciplined underwriting in 2026. A broker’s role is to ensure clients secure sustainable deals with partners that are able to withstand future market shifts.”

IINTERNATIONAL UNDERWRITING ASSOCIATION

Tom Hughes, Director of Underwriting sees emerging risks ahead;

Insurers face a number of challenges in 2026, with market conditions placing pressure on growth, rate adequacy and profitability. However, opportunities remain for those willing to be disciplined, innovative and committed to providing that front-to-end-service that clients need and value. At the same time, companies are also facing emerging risks on an unprecedented level.

There is a continuous need to monitor and adapt to threats arising from geopolitical unrest, climate extremes, rapid advances in artificial intelligence, malicious cyber-attacks and litigation trends that outpace regulation. In an increasingly interconnected world, many of these issues transcend borders, industries and sectors. Tackling them calls for a commitment to open communication and collaboration with the aim of growing our collective understanding.

The IUA will, next year, be publishing research examining insurance protection gaps relating to emerging risks. We will also be monitoring the cross-class development of PFAS (per- and polyfluoroalkyl substances) risks and, in particular, their impact on existing pollution clauses.

SAGACITY

Sagacity sees two key trends: AI will help sharpen up data, making it more valuable in terms of underwriting. Plus we will see new regulations open up opportunities for MGAs and brokers alike;

Insurers will be forced to go back to basics on data in order to get AI ready. “After a year of excitement around AI in insurance, 2026 will see insurers take a step back to focus on solid foundations. Across the industry, forward-thinking insurers have ambitious plans for AI – spanning underwriting to customer service – but many have found their data estates aren’t AI ready yet. Insurance is a data-heavy industry, but fragmented, inconsistent, and incomplete data means AI models are deployed on shaky ground.

“Next year, we’ll see insurers return to the basics, rolling up their sleeves to migrate, standardise, and cleanse their data for the AI use cases that offer real value. Removing outdated records and eliminating duplicates may seem like background work, but it will separate the leaders from the laggards in the AI race. Stakeholders expect efficiency gains and measurable ROI from AI investments, but those results will depend on strong data foundations – making this a top business priority for 2026.” Dean Standing, Chief Revenue Officer

Regulatory changes will offer new opportunities for insurers. “Incoming regulation will be a key driver of insurance uptake in 2026. From the EU’s Entry/Exit Systems, which will prompt people to confirm if they have insurance, to the CMA’s potential plans requiring vets to publish treatment prices, new rules are set to influence customer behaviour and create fresh opportunities for insurers.

“As these changes come into force, proactive, data-focused insurers can play a leading role in helping consumers navigate new landscapes. By guiding customers on what these regulations mean and providing relevant cover options for people’s specific needs, insurers can build relationships with new audiences. This could be travellers buying protection for the first time or pet owners reassessing the value of insurance. Greater transparency and awareness driven by regulation could expand the market and prompt new and existing customers to rethink the role insurance plays in their life.” Sam Jayes, Head of Client Services.

PEGASYSTEMS

Meanwhile Manoj Pant, Senior Director, Strategy and Solutions, at Pegasystems, sees AI and automation improving the customer experience next year;

CX and Digital Transformation
- “Improving customer experience remains a top strategic priority, and insurers are asking more and more on how technology can be used to retain customers and attract new ones. By leveraging advanced analytics and AI, insurers will be able to deliver proactive value driven customer engagement in 2026.”
- “As insurers rethink their products and distribution models, the focus is turning to Gen Z consumers and trying to engage this demographic of digital natives who prefer seamless, mobile-led interactions over traditional channels. In the life and pension insurance markets especially, there is a pressing need to modernise offerings and make them relevant to younger audiences, as well as ensuring more popular offerings in the cyber and auto spaces are optimised with this generation in mind.”
- “Embedded insurance will continue to gain traction in 2026, with coverage integrated into broader customer journeys. This approach simplifies access and aligns insurance with customer intent at the point of need.”

SUPERCEDE

Jerad Leigh, co-founder and CEO of Supercede, sees potential risks ahead for those who rush towards an AI utopia in 2026;

Companies will abandon first principles in pursuit of AI dreams

AI is the hottest game in town and, if even part of its potential is realised, could have a transformative impact on the reinsurance industry. However, AI project failure rate within large enterprises has shown to be as high 95%. There are myriad reasons why this failure rate is so high but the simplest common thread would be the abandonment of first principles – teams and businesses losing focus of the core problem they’re trying to solve.

This problem is more pronounced with AI because it’s easy to get caught up in the utopian future state that we’re promised. That problem will be especially true with reinsurance. With heaps of messy data, complex and nuanced contract terms, and the dynamic nature of the reinsurance purchasing process, it’s no wonder that we’re taken by the dream of an AI-powered universe that makes it all ‘easy’.

But that utopia is a fiction. Especially if we try to go directly to that promised land all at once.

For AI to have a meaningful, real-world impact on business, cedents, brokers and reinsurers will need to start with hyper-specific use cases and select AI solutions that can help them prove out that value. If successful, they can move on to the next area; rinse and repeat.

If companies maintain their first principles and start small, they can see meaningful value delivered through AI. If they don’t, they could see a sizeable investment vanish with nothing to show for it.