These insights are by Stuart Favier, Insurance Client Manager, Northdoor plc
Blueprint Two delays
Blueprint Two has now slipped to 2028 at the earliest, with heritage systems supported until 2030. Many firms had planned their technology roadmaps around these milestones, and the delay has created uncertainty.
Insurers can no longer rely on the wider market programme to drive their own modernisation. Instead, they need to update systems now, with Blueprint Two in mind but not dictating every decision.
Many firms are already taking this approach, improving internal systems and processes today, while ensuring whatever they build can integrate with Blueprint Two when it eventually arrives. The priority is to deliver improvements that offer value straight away, such as better data management, automated processes, and more reliable customer support tools.
Those that move early, rather than wait for the market to change around them, will be better prepared when Blueprint Two finally goes live.
Data integration becomes central to everyday operations
Insurers are putting much more emphasis on joining up their systems and removing manual work. API integrations are no longer optional, they are becoming the standard way to connect underwriting, claims, and external partners.
The aim is simple: reduce re-keying, improve data accuracy, and speed up decision-making. Automation is becoming a necessity for firms that want to reduce operational friction and make better use of the information they already have.
More insurers are adopting API-first architectures so that internal teams and external partners can share data cleanly and consistently. This makes it easier to combine human expertise with tools like AI and analytics.
Artificial Intelligence moves out of pilot projects and into everyday use
AI adoption is expected to reach around 90% of the insurance workforce by 2026, a steep rise from today. The technology is shifting from small test projects to practical tools that help with everyday tasks.
Common uses include extracting information from documents, standardising data, improving reporting, and supporting underwriting and pricing. Firms using AI report faster onboarding, more accurate data processing, and lower operating costs.
The focus has moved away from overly complex solutions toward simpler deployments that solve long-standing issues, particularly around unstructured data and manual workflows.
However, challenges remain, including security, skills shortages, and cultural resistance. Strong oversight, clear governance, and realistic implementation plans remain key to getting value out of AI. The key for the insurance industry to help ensure a smooth implementation of AI technology is communication, with internal teams and customers. AI should not be perceived as a threat to jobs and services. Rather a tool that can help humans do their jobs better and provide better customer service.
Cybersecurity pressures grow after major incidents in 2025
The high-profile breaches seen in 2025 highlighted weaknesses across all business sectors, especially in legacy systems and third-party dependencies. Without continued investment, similar incidents are likely in 2026.
A growing number of firms report security incidents linked to third parties. As a result, stronger vendor oversight, better access control, and more consistent patching are becoming core requirements. Boards and regulators are paying closer attention to cybersecurity than ever before. Policyholders are also facing more scrutiny, with insurers expecting clearer evidence of good security practices before providing cover.
AI-based security tools are proving effective in reducing breach costs, and investment in quantum-resistant technology is starting to grow—though still modestly.
The insurance sector in particular remains a tempting target for cybercriminals because of the nature of the data and information held. Cyber risk now has to be a routine part of leadership discussions, not an occasional concern.
Key steps for 2026
Insurers can’t afford to delay modernisation, even with market-wide programmes moving slowly. Improvements in data, AI, sanctions, and security all bring immediate benefits and reduce operational risk.
Key focus areas for 2026 include:
- Updating core systems to support modern integration needs
- Strengthening data usage to meet evolving requirements and competition
- Deploying AI in practical, high-value areas
- Enhancing cybersecurity, particularly around third-party risk
- Conducting regular audits and testing incident response plans
Companies that take action now will be better positioned for whatever the next few years bring.
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