Top 5 digital insurance trends 2026

As we enter 2026, insurers are analyzing factors and trends that will impact their business throughout the year. What was once considered an experiment with digitalization is now becoming a necessity for the coming year. In this article, we gathered and summarized five digital insurance trends identified as top by leading companies providing consulting and technology services to the insurance industry. This summary will help your insurance business keep up with the times and take appropriate actions to stay competitive.

Trend 1 – Digital engagement can improve group insurance

After peak growth in 2024, traditional group insurance products are expected to decline over the next few years.

Recent research by the Life Insurance Marketing and Research Association found that 40% of employers would switch their insurance providers if their current provider could not connect products to their benefits platform. This research shows that digital solutions and integration APIs are encouraging insurers to modernize their outdated systems to offer a better customer experience.

Trend 2 – Adoption of new technologies depends on effective data management

The insurance sector is actively exploring AI capabilities, but true adoption remains a plan because many insurers struggle with siloed, fragmented data. According to Deloitte’s 2026 Global Insurance Outlook, to realize the full value of AI integration, it needs to be effectively embedded into workflows that rely on standardized data.

Thus, the success of AI launch in the insurance business depends on a well-defined master data management strategy and effective DWH solutions.

Trend 3 – Insurers can improve customer engagement with the proper digital channels

CX Pilots’ “The State of Digital CX in Insurance 2026 Benchmark Report” reveals a significant gap between industry and customer expectations. In its report, CX Pilots agrees with J.D. Power’s “U.S. Insurance Digital Experience Study,” saying that 47% of auto insurance consumers buy policies through digital channels. It is considerably more than the number of policies purchased through agents (35%) and call centers (17%). These findings show that implementing digital interaction touchpoints is crucial for insurers to retain and attract customers.

Trend 4 – Insurers choose AI and generative AI as top-priority technologies to invest in

According to Reuters’ “Special Report: The European Insurer’s Digital Transformation Journey,” AI is dominating technology roadmaps today. Artificial intelligence and generative AI are among the most popular technologies European insurers plan to invest in. As shared by respondents, 62% plan to invest in generative AI, and 56% plan to invest in machine learning and AI over the next three years.

Also, the survey reveals that a significantly higher percentage of European insurers plan to invest in various technologies compared to those in other regions.

Another report, KPMG’s “Insurance transformation: The new agenda,” also says that insurers are actively adopting AI across specific workflows. 48% of respondents say they have already introduced AI to enhance customer engagement, while 26% plan to launch AI to improve the customer experience over the next two years.

Trend 5 – Digital transformation and profitability are closely linked

According to KPMG’s report “Insurance transformation: The new agenda,” insurance carriers see the close connection between transformation and profitability. As shared by survey respondents, there are high expectations for a return on investment from digitalization and the automation of key operations. This also includes legacy system modernization and the introduction of new technologies, resulting in optimizing cost per customer and cost to serve.

Understanding these trends is critical to success. The most proactive insurers are already embracing new technologies, modernizing their legacy systems, and implementing modern digital solutions.

The time is now to act

With many emerging risks, ever-changing customer expectations, and the advent of digital technologies, the insurance sector is about to enter a new era of ubiquitous digitalization and automation. Now is the time for insurance businesses to invest in the right partnerships, software solutions, and technologies. We at DICEUS are ready to help you:

• Automate your back-office operations with our solution for policy administration and group insurance management
• Take your underwriting process to the next level with intelligent decision support powered by AI
• Increase customer engagement with our customer-facing solutions like Super App and Customer Web Portal
• Turn your captive insurance company or captive management company into a fully digitalized business
• Ensure good quality of data with our Data Warehouse for insurance companies
• Make your collaboration with brokers fully automated

Explore all DICEUS solutions for insurance