The Big Question: What will industry innovation for UKGI look like in 2026?

George Beattie, head of innovation, CFC Underwriting

The global insurance industry, including UK general insurance (UKGI), faced a once in a generation grey swan event this year in the form of artificial intelligence (AI). 

Some in the industry prefer to treat AI as a fad. But at CFC Underwriting, our view is that UKGI has entered a new industrial revolution and that inaction around AI could lead to an acute ‘Kodak moment’ across the sector.

The reasoning behind this view is twofold.

Firstly, the AI uptick was the first industrial revolution to impact white collar, knowledge-based roles. Secondly, AI has become much smarter a lot faster than previously thought possible.

Some systems have already passed the Turing test, for example – which examines a machine’s ability to exhibit intelligent behaviour equivalent to humans – and commentators believed the sector could reach the technological singularity in the 2040s, where intelligent machines can design more advanced systems without human involvement.

In 2026, the insurance industry urgently needs to address how to harness AI for the operational benefit of its workforce.

For example, at CFC Underwriting, we talk about how AI is going to superpower underwriters, giving them greater financial responsibilities and making their roles more enjoyable. Agentic AI, properly implemented, could strip out labour intensive and low value repetitive activities – like human led data extraction – from the ongoing anachronism of the wider sector.

The sector also needs to address AI risks. This includes the acceleration of existing exposures – for example, directors’ and officers’ (D&O) cover for AI non-executive directors – to novel exposures requiring new insurance products.

UKGI has previously lacked sufficient expertise and understanding of how AI systems really work and how they could reshape the risk landscape. This presented a systemic risk for the industry, as well as a huge missed income opportunity that could exacerbate insurance’s decline in relevance to the future economy.

Put simply, this slow burn innovation crisis is not distinct to AI. It stems from a lack of infrastructure to enable insurance to penetrate the growing protection gap – the space between what insurance does today and what it needs to do to enable the economy of tomorrow.

Andre Symes, chief executive, Genasys Group

What will innovation in UKGI really look like in 2026? Probably not that Uber moment everyone has been predicting since 2016. The more things change, the more they stay the same.

Another year of noise follows, another wave of AI hype and another set of bold predictions. Behind all the fanfare, however, the real innovation is quieter, more practical and far more grounded.

In 2026, the innovation shift is from big ideas to useful ones. Insurers, MGAs and brokers will focus on technology that actually helps them launch products faster, connect data without creating new headaches and run leaner operations that still satisfy regulators and – most importantly – customers.

That is where the real change lives. Not in flashy concepts, but in systems that can assist the average Tuesday morning in underwriting or claims.

AI keeps maturing, but its role is less heroic and more helpful. Fewer experiments done for show start to appear, with more embedded, measurable outcomes evident. That repeated sentiment continues –problems exist and technology is absolutely part of the answer.

Technology, however, should not be used for the sake of technology. This industry has a habit of swinging Maslow’s Hammer around – continuously tapping into technology as an overfamiliar tool – and assuming every challenge must be a nail.

In 2026, UKGI’s winners will be the firms that pair modern tooling with discipline, clarity and restraint. Repeatable processes. Better connectivity. Simpler operations. Real value.

It is technology evolution, not revolution.

Kim Darrington, director of market operations and transformation, International Underwriting Association

Technological innovation is transforming both the risks that insurers are covering and the way in which the sector is providing clients with insurance propositions.

We are seeing an increasing use of AI models to make predictions, parametric triggers and smart follow algorithmic underwriting. Digitisation of business processes within the London market continues too and it is essential that the sector develops a robust market infrastructure that is easily extendable for a data first approach in future.

Delivery of the Velonetic services refresh under the Blueprint Two banner will remain on the market’s radar throughout 2026, with a focus on testing these services to assure their functionality before delivery.

In 2025, there was a trend towards production and adoption of market-wide data standards and we expect to see a continuation of that in 2026.

Some market participants have made significant efforts to integrate data standards into their operations and workflow. We therefore consider it likely that a lot of work next year will be put into education, training and further adoption.

The effectiveness of digitisation work depends not just on the technologies deployed, but also on the quality and consistency of the data shared.

Automating heavily embedded processes to handle thousands of messages between hundreds of market participants on a daily basis is a hugely complex task. Testing new technology is vital and we must take the time required to ensure this is done thoroughly.

Jo Sykes, broker divisional director, Markel UK

AI is transforming the underwriting process. In the past, underwriters spent much of their time on administrative duties – like gathering documents, sorting risks manually and reviewing structured forms. By 2026, however, AI powered systems will handle these tasks automatically, allowing underwriters to concentrate on complex risk assessments and strategic decisions.

Companies like Markel UK that adopt this type of technology early are already experiencing increased decision accuracy and faster quoting times, ultimately providing better service to brokers. 

Technology is also streamlining claims processes by improving data flows and interpretation, leading to faster settlements. However, the industry must balance automation with personal service. Markel UK views technology as a support tool, ensuring that people are available to assist brokers or customers where needed.

To effectively meet customers’ needs, ongoing product innovation is essential within the industry.

As market rates soften, it is important to avoid an overemphasis on price, as this may result in inadequate coverage for clients. Markel UK’s strategy therefore focuses on developing specialised, sector specific products to ensure clients receive the protection they require.

Jon Walker, chief executive, Axa Commercial

Looking ahead to 2026, the industry is poised for more transformation, driven by technological innovation and a greater focus on customer-centric propositions.

Embracing AI, capturing and analysing data and using technology has the potential to significantly improve underwriting decision-making, as well as enhance risk assessment and claims management, enabling faster and more accurate decisions.

These innovations will not only enhance operational efficiency, but ensure we provide customers with positive outcomes.

In 2025, Axa Commercial delivered profitable growth amid a softening market. I think market conditions will start to stabilise in H2 next year, while remaining competitive, and insurers have a responsibility to guide customers and brokers through market cycle changes and help them understand what to expect.

Supporting our customers to protect what matters most to them is central to everything we do – we must be agile and responsive in the way we develop new products and services. When facing into the challenge of predicting future risks, a strategic focus on prevention and education will be vital.

Axa’s October 2025 Future Risks Report – an annual survey of the public and experts’ key concerns – ranked climate change as number one for the UK public for the fourth consecutive year. It is crucial that insurers respond to this concern and do all we can to help build resilience against climate and environmental risks.

Ultimately, our goal is to help customers navigate an ever-changing world with confidence, ensuring the UK remains resilient in the face of future uncertainties.