Many people see AI as a threat to jobs in the insurance sector. To some extent that may be true as regards basic admin functions, but surely automating claims settlements or policyholder updates is a good thing? Then are pricing challenges on Specialty that require some AI number/data crunching, which in turn empowers brokers and MGAs in specific fields.
Here are some thoughts from Wakam on fraud, sector consolidation, plus the way AI can enhance and empower insurance brands – and their staff – in 2026.
Mark Christer, CEO of Wakam UK
Prediction 1:
The future becomes clearer when you understand the path that brought us here. With this in mind, the data from 2024 and 2025 tells a blunt story. Climate risk has moved from a future possibility to a present operating condition. Last year was the warmest ever recorded. The UK experienced its fourth-warmest year. Six of the ten wettest years have occurred since 1998. Flood warnings reached a record high. Property claims hit £4.1 billion, the largest figure on record. Climate is no longer a volatility event.
At the same time, fraud is rising just as sharply. In the first half of 2025, Allianz identified £92.6 million in fraud, an annual increase of 34 per cent. The UK Government estimates the total insurance fraud burden at £8.3 billion. The new failure to prevent fraud offences coming into force in late 2025 reinforces one expectation. Insurers will need to detect and deter fraud with far greater precision.
Set this against an economic backdrop defined by weak growth and rising costs. GDP is expanding by barely 1 per cent. Rates are softening in several lines. For most carriers, 2026 will be the year these pressures converge.
Prediction 2:
I think we’re seeing a structural realignment under way. Consolidation at the top of the market, reflected in moves such as Aviva with Direct Line and Ageas with Esure, shows what happens when scale becomes the primary defence in volume-driven personal lines. At the same time, MGAs are expanding. Capacity providers expect to increase MGA allocations over the next two years. Eighty-four per cent of MGAs plan to launch new lines. Specialty business now represents more than a quarter of all M&A activity.
The implication is personal lines will consolidate, while growth and innovation shift toward specialty. MGAs that can execute quickly, underwrite with discipline and operate in underserved niches will be the ones that gain ground.
For Wakam UK, this shift confirms what we already believe. Speed matters. Data matters. Oversight matters. Accessibility of decision-makers matters. As climate volatility, fraud pressures and economic uncertainty intensify, partners will prioritise markets that respond quickly and operate with low friction.
To this end, my prediction for 2026 is simple. Insurers that cling to legacy structures will experience this convergence as a squeeze. Insurers that simplify, specialise and empower their teams to act with conviction will turn it into an advantage.
Dean Witherington, Chief Claims Officer at Wakam UK
Prediction 1:
The insurance market has spent much of the past year talking about AI-powered case handling. Faster decisions, automated triage and digital assistance have dominated the conversation. What far fewer people are discussing is where the real transformation will happen in 2026: the use of AI for oversight.
AI-driven oversight will allow claims teams to spot patterns earlier, identify inconsistencies, monitor quality in real time and support better decision-making across high volumes of cases. It has the potential to raise standards across the entire workflow, not just individual touchpoints.
Crucially, this is not about replacing people. At Wakam UK, the team has already been told clearly that nobody is losing their job because of AI. The technology is being introduced to enable them, not remove them. By giving teams smarter tools, clearer visibility and instant feedback loops, AI will strengthen human judgement rather than sideline it.
The insurers who stand out in 2026 will be the ones who use AI to enhance oversight, elevate quality and support their people. This aligns directly with the way Wakam UK is building its claims function for the future.
Vicky Gardner, Head of HR at Wakam UK
Prediction 1:
In 2026, many large organisations will continue rolling back hybrid work. We are already seeing employers raise the minimum expectations. Teams that were previously asked to be in the office for two days are now being told they must come in for three or even four. The direction is clear: less flexibility and more compulsory attendance.
Wakam UK is deliberately setting a different example. The business will continue prioritising genuine flexibility, giving colleagues the freedom to choose the working pattern that helps them perform at their best. Whether that means coming into the office or working from home, people are trusted to manage their time in a way that supports both their wellbeing and the quality of their work.
In a year when many companies risk losing talent by tightening the rules, Wakam UK believes the organisations that succeed will be the ones that respect individual working styles and empower people to do their best work wherever they are most effective.
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