Predictions 2026 Insights From Outsystems Insurance Edge Net

Bonisiwe Shabane

-Dec 27, 2025, 7:26 AM

predictions 2026 insights from outsystems insurance edge net

Here are a few predictions for 2026 from: Ben Sekhon, RVP UKI at OutSystems, commented: 1. UK’s Hidden Edge: How Legacy Knowledge is key for 2026 – The UK has a lot of legacy enterprises who have been, historically, slow to adopt new technologies. However, we’ve seen them eagerly dive head-first into AI alongside the young startups. Fearmongering headlines may point to an AI bubble, but our on-the-ground feedback tells us the UK is going all in with AI mandates for 2026.

Old companies often mean old infrastructure; the number one priority for UK companies adopting AI in 2026 is app modernisation. Many existing systems are several decades old, patched together with countless upgrades. We no longer know how they operate and must therefore rely on AI to understand the system, rebuilding it to fit the modern architecture. However, legacy systems are also a largely untapped goldmine of institutional knowledge. They contain decades of built-in business rules and process logic; knowledge that no documentation library can fully capture. AI-powered systems and agents, deployed on the right kind of platform, can turn that dormant knowledge into a strategic asset.

Indranil Bandyopadhyay, Principal Analyst The global insurance industry is heading into a transformative year in 2026, with seismic shifts driven by the rise of AI, the urgency of customer experience (CX), expansion into uncharted markets such as gig-economy... The challenges are steep, but the opportunities are immense if insurers act boldly and strategically. At the heart of this transformation lies a simple truth: The insurance industry must evolve to meet changing customer expectations, counter new risks, and seize the power of emerging technologies such as AI. Here is a quick look at three predictions about the year ahead and what insurers need to do to thrive. In 2026, customer satisfaction will take center stage as insurers fight to retain clients in the face of rising premiums and growing mistrust.

Double-digit rate increases in 2025 sent shockwaves through the industry, leaving many customers frustrated and questioning their loyalty. To win them back, leading carriers will double down on CX investments, focusing on quick issue resolution, proactive communication, personalized policy options, and seamless claims experiences. The surge in natural disasters and social inflation is driving a mass exodus of private insurance from California and Florida. But in 2026, we predict that one innovative insurer will reenter these markets with a novel approach. Using internet-of-things devices, smart-home data, and incentivized risk mitigation, carriers can create personalized products for high-risk property markets. Advanced catastrophe modeling powered by AI and machine learning will pave the way for reentry into catastrophe-prone regions.

These innovations could provide new hope for homeowners struggling to secure coverage. As we move into 2026, the insurance industry is undergoing major changes. Embedded insurance, API-driven integrations, advanced AI, and new regulations are reshaping how insurance is bought and sold. These advancements are making insurance simpler, more personalized, and easier to access - while also creating new revenue opportunities for businesses. Here’s a quick look at the key trends shaping the future of insurance: These trends highlight how technology and regulation are working together to transform the insurance landscape, benefiting consumers and businesses alike.

By 2026, embedded insurance will become a regular part of digital transactions. Instead of requiring a separate purchase, insurance coverage will be seamlessly included in everyday activities - whether you're buying electronics, booking a trip, or making an online purchase. The embedded insurance market is growing fast, driven by its ability to boost revenue and improve customer satisfaction. By offering coverage at the point of sale, businesses make it easier for consumers to get the protection they need, right when they need it. It’s that time of year again when every corner of the insurance world starts rolling out bold predictions about AI, automation, and climate risk. Don’t worry, we’ll cover those too.

But this upcoming year has a story that runs a little deeper. 2026 isn’t just about smarter models or faster claims. It’s about a world where political volatility spills into underwriting, cyber threats keep expanding the definition of “risk,” and embedded insurance flips the value from who can sell the most policies to who can... The chatter around what’s to come has never been louder, but the real transformation is happening behind the scenes in workflows, data models, and how insurers decide what’s truly insurable. So instead of another forecast of buzzwords, this is a look at what’s actually changing the game of insurance in 2026 (the shifts you can feel in daily operations, not just read in reports). Although for some of us, AI has already felt like such an integrated part of our daily lives, in 2026, it’s stepping up in a huge way.

Insurers are embedding it into workflows and leveraging AI-driven insights to better segment clients and personalize offerings. Early adopters are already seeing 20–40% cost reductions across onboarding, claims, and back-office operations, with premium growth of 10–15% where AI helps better segment risk (McKinsey, 2025). While some industries have experimented with AI to replace employees entirely, insurance is taking a different approach by using AI to enhance human expertise. Repetitive tasks and data crunching are handled by AI, freeing underwriters, claims adjusters, MGAs, and agents to focus on judgment, strategy, and client relationships. How quickly does the insurance space evolve? Nearly three years ago, I wrote about five technologies impacting the industry, and artificial intelligence (AI) did not even make the list.Yet while technology advances quickly, it also follows a pattern of evolution.

Over the past 36 months, our industry has seen remote imagery emerge as a complement to telematics, Big Data morph into advanced analytics, and AI move from curiosity to an industry imperative. Each pivot represents the natural next step in the digital sophistication of carriers, agents and brokers. Today's top emerging tech trends in the insurance space also continue a trajectory I saw developing three years ago. The move-fast-and-break-things ethos that defined ambitious insurtechs has given way to a more measured approach centered on compliance and sustainability. One reason for this shift is financial, as global insurtech funding dropped by 47% in the first half of 2025. Startups now must demonstrate a credible route to profitability based on sound unit economics to attract the attention of a shrinking venture capital (VC) market.

With fewer unicorns and more realistic valuations, many insurtechs are restructuring to cut costs, reducing their marketing spend and concentrating on core competencies that can generate profit. Simultaneously, startups are moving away from disruption and toward cooperation. VC firms are choosing to invest in insurtechs that design solutions built to help carriers and brokers achieve maximum efficiency and growth. Given these global changes, what technological advancements can we expect to see across the insurance industry heading into 2026? These are the top five technologies that stand out.

Predictions 2026 Insights From Outsystems Insurance Edge Net

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