The insurance industry continues to rapidly evolve through the most dynamic era of change in its history.Insurers that respond will survive and even thrive, Deloitte reports.Those who don't will fall behind."The future of insurance is here, and insurers will need to decide how to most effectively transform their infrastructure to remain profitable," concluded Deloitte in its report titled „Global Outlook for Insurance 2026“.Deloitte predicts a "split industry" in which technologically advanced insurers thrive while laggards struggle under cost and regulatory pressures.
The firm prepares its Global Insurance Outlook annually through conversations with industry leaders from around the world.With insurers facing many challenges, it is not surprising that Deloitte does not predict as much financial growth."We think growth will slow down," explains Joe DeSantis.He is responsible for the US insurance sector at Deloitte."While there is still growth in commercial auto and there will likely be growth in property insurance, we will not see it to the extent that we saw it in 2025."
Impact of climate change
Property and casualty insurers are facing an inexorable fallout from worsening weather events.From devastating wildfires in California to hurricanes in Florida.Highly intense events caused by climate change are costing insurers billions.Premiums have skyrocketed and many property insurance companies are reducing their coverage.
Weather events make it more expensive for primary firms to transfer risk, Deloitte says.Tightening reinsurance conditions and increased risk retention lead to higher loss ratios.This adds to a global coverage gap of $183 billion, the forecast found."We believe the severity of these crashes will escalate in the future," DeSantis says.
Property insurers face additional pressure from more lawsuits funded by international investors and broker consolidation.This makes it difficult for them to compete.Still, advanced technology can help minimize losses and improve risk management.
Slowdown in life insurance growth
Global life insurance growth ...
The insurance industry continues to rapidly evolve through the most dynamic era of change in its history.Insurers that respond will survive and even thrive, Deloitte reports.Those who don't will fall behind."The future of insurance is here, and insurers will need to decide how to most effectively transform their infrastructure to remain profitable," concluded Deloitte in its report titled „Global Outlook for Insurance 2026“.Deloitte predicts a "split industry" in which technologically advanced insurers thrive while laggards struggle under cost and regulatory pressures.
The firm prepares its Global Insurance Outlook annually through conversations with industry leaders from around the world.With insurers facing many challenges, it is not surprising that Deloitte does not predict as much financial growth."We think growth will slow down," explains Joe DeSantis.He is responsible for the US insurance sector at Deloitte."While there is still growth in commercial auto and there will likely be growth in property insurance, we will not see it to the extent that we saw it in 2025."
Impact of climate change
Property and casualty insurers are facing an inexorable fallout from worsening weather events.From devastating wildfires in California to hurricanes in Florida.Highly intense events caused by climate change are costing insurers billions.Premiums have skyrocketed and many property insurance companies are reducing their coverage.
Weather events make it more expensive for primary firms to transfer risk, Deloitte says.Tightening reinsurance conditions and increased risk retention lead to higher loss ratios.This adds to a global coverage gap of $183 billion, the forecast found."We believe the severity of these crashes will escalate in the future," DeSantis says.
Property insurers face additional pressure from more lawsuits funded by international investors and broker consolidation.This makes it difficult for them to compete.Still, advanced technology can help minimize losses and improve risk management.
Slowdown in life insurance growth
Global life insurance growth is slowing as "US policy and continued distribution consolidation forces insurers to rethink their go-to-market strategies," Deloitte concluded.Investing in private equity and strategic alliances with relevant partners can unlock new growth opportunities.Two trends are expected to continue –the boom in annuity sales, along with strong interest from investment firms seeking a stake in life insurance companies.
Big investment firms such as Apollo Global Management and Brookfield continue to be drawn to life insurers for new sources of capital they can invest, Deloitte said.Likewise, Lincoln Financial and Bain Capital formed a partnership to help the
insurer to accelerate its portfolio transformation and capital allocation priorities while leveraging the platform of asset managers across asset classes.Guardian Life and Janus Henderson announced a strategic partnership in April this year.
Other key opportunities for insurers in 2026 include:
- Group insurance options:
As health care costs rise, levels of participation in employer benefit programs decline, Deloitte found.Group insurers can find growth by capitalizing on growing demand for personalized employee benefits, such as healthy lifestyle and daycare products, and by prioritizing seamless digital connectivity.A recent study found that 40% of employers would switch insurers if their products could not be integrated with their online HR platform.
- Real Business Impact of Artificial Intelligence:
Insurers are realizing the real business impact of AI as they move from testing to integration, such as real-time AI-based fraud analysis, which could save property and casualty insurers up to $160 billion by 2032, Deloitte reports.However, the same innovative technology also increases the risk of cyber attacks, which require stronger data foundations and advanced systems to ensure cyber resilience.
- Advantages and Controversies of the New One Big Beautiful Bill Act:
US insurers benefit from a reduced corporate tax rate of 21% and other tax breaks under the new tax rules, but the details of international tax regulations that affect multinational insurers remain unclear, Deloitte reports.
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Frequently asked questions
What does Deloitte predict for the future of the insurance industry?
Answer: Deloitte expects a "split industry" where technologically advanced insurers will grow and laggards will lose market share.Companies that do not invest in digitization and automation will be squeezed by costs and regulations.Managers must modernize their infrastructure to remain competitive.Adaptability becomes a key condition for survival.
Why is climate change putting increasing pressure on insurers?
Answer: Extreme weather events are causing record damage and driving up claims costs.Wildfires, hurricanes and floods force insurers to raise premiums and limit coverage.Reinsurance becomes more expensive, further increasing the risk for primary companies.Deloitte predicts that these losses will continue to grow.
What are the main trends in life insurance?
Answer: Life insurance growth is slowing due to changes in regulations and consolidation of distribution channels.At the same time, there is increased interest in annuities and alternative investments.Large investment groups are entering the sector through partnerships with traditional insurers.This is changing business models and capital strategies.
How AI is changing the insurance business?
Answer: Artificial intelligence is already delivering real results in the fight against fraud and process automation.Real-time AI analytics could save the industry up to $160 billion.Insurers are moving from test phases to full integration.However, this also raises the need for better cyber security.
What new opportunities does Deloitte see in 2026?
Answer: Group insurance offers serious potential through customized solutions for employees.Digital integration with HR platforms is becoming increasingly important for employers.Legislative changes in the US provide tax relief but create international ambiguities.Companies that respond flexibly will have an advantage.
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The insurance industry continues to rapidly evolve through the most dynamic era of change in its history.Insurers that respond will survive and even thrive, Deloitte reports.Those who don't will fall behind."The future of insurance is here, and insurers will need to decide how to most effectively transform their infrastructure to remain profitable," concluded Deloitte in its report titled „Global Outlook for Insurance 2026“.Deloitte predicts a "split industry" in which technologically advanced insurers thrive while laggards struggle under cost and regulatory pressures.
The firm prepares its Global Insurance Outlook annually through conversations with industry leaders from around the world.With insurers facing many challenges, it is not surprising that Deloitte does not predict as much financial growth."We think growth will slow down," explains Joe DeSantis.He is responsible for the US insurance sector at Deloitte."While there is still growth in commercial auto and there will likely be growth in property insurance, we will not see it to the extent that we saw it in 2025."
Impact of climate change
Property and casualty insurers are facing an inexorable fallout from worsening weather events.From devastating wildfires in California to hurricanes in Florida.Highly intense events caused by climate change are costing insurers billions.Premiums have skyrocketed and many property insurance companies are reducing their coverage.
Weather events make it more expensive for primary firms to transfer risk, Deloitte says.Tightening reinsurance conditions and increased risk retention lead to higher loss ratios.This adds to a global coverage gap of $183 billion, the forecast found."We believe the severity of these crashes will escalate in the future," DeSantis says.
Property insurers face additional pressure from more lawsuits funded by international investors and broker consolidation.This makes it difficult for them to compete.Still, advanced technology can help minimize losses and improve risk management.
Slowdown in life insurance growth
Global life insurance growth ...
The insurance industry continues to rapidly evolve through the most dynamic era of change in its history.Insurers that respond will survive and even thrive, Deloitte reports.Those who don't will fall behind."The future of insurance is here, and insurers will need to decide how to most effectively transform their infrastructure to remain profitable," concluded Deloitte in its report titled „Global Outlook for Insurance 2026“.Deloitte predicts a "split industry" in which technologically advanced insurers thrive while laggards struggle under cost and regulatory pressures.
The firm prepares its Global Insurance Outlook annually through conversations with industry leaders from around the world.With insurers facing many challenges, it is not surprising that Deloitte does not predict as much financial growth."We think growth will slow down," explains Joe DeSantis.He is responsible for the US insurance sector at Deloitte."While there is still growth in commercial auto and there will likely be growth in property insurance, we will not see it to the extent that we saw it in 2025."
Impact of climate change
Property and casualty insurers are facing an inexorable fallout from worsening weather events.From devastating wildfires in California to hurricanes in Florida.Highly intense events caused by climate change are costing insurers billions.Premiums have skyrocketed and many property insurance companies are reducing their coverage.
Weather events make it more expensive for primary firms to transfer risk, Deloitte says.Tightening reinsurance conditions and increased risk retention lead to higher loss ratios.This adds to a global coverage gap of $183 billion, the forecast found."We believe the severity of these crashes will escalate in the future," DeSantis says.
Property insurers face additional pressure from more lawsuits funded by international investors and broker consolidation.This makes it difficult for them to compete.Still, advanced technology can help minimize losses and improve risk management.
Slowdown in life insurance growth
Global life insurance growth is slowing as "US policy and continued distribution consolidation forces insurers to rethink their go-to-market strategies," Deloitte concluded.Investing in private equity and strategic alliances with relevant partners can unlock new growth opportunities.Two trends are expected to continue –the boom in annuity sales, along with strong interest from investment firms seeking a stake in life insurance companies.
Big investment firms such as Apollo Global Management and Brookfield continue to be drawn to life insurers for new sources of capital they can invest, Deloitte said.Likewise, Lincoln Financial and Bain Capital formed a partnership to help the
insurer to accelerate its portfolio transformation and capital allocation priorities while leveraging the platform of asset managers across asset classes.Guardian Life and Janus Henderson announced a strategic partnership in April this year.
Other key opportunities for insurers in 2026 include:
- Group insurance options:
As health care costs rise, levels of participation in employer benefit programs decline, Deloitte found.Group insurers can find growth by capitalizing on growing demand for personalized employee benefits, such as healthy lifestyle and daycare products, and by prioritizing seamless digital connectivity.A recent study found that 40% of employers would switch insurers if their products could not be integrated with their online HR platform.
- Real Business Impact of Artificial Intelligence:
Insurers are realizing the real business impact of AI as they move from testing to integration, such as real-time AI-based fraud analysis, which could save property and casualty insurers up to $160 billion by 2032, Deloitte reports.However, the same innovative technology also increases the risk of cyber attacks, which require stronger data foundations and advanced systems to ensure cyber resilience.
- Advantages and Controversies of the New One Big Beautiful Bill Act:
US insurers benefit from a reduced corporate tax rate of 21% and other tax breaks under the new tax rules, but the details of international tax regulations that affect multinational insurers remain unclear, Deloitte reports.
See more inInsurance.bg website!
Frequently asked questions
What does Deloitte predict for the future of the insurance industry?
Answer: Deloitte expects a "split industry" where technologically advanced insurers will grow and laggards will lose market share.Companies that do not invest in digitization and automation will be squeezed by costs and regulations.Managers must modernize their infrastructure to remain competitive.Adaptability becomes a key condition for survival.
Why is climate change putting increasing pressure on insurers?
Answer: Extreme weather events are causing record damage and driving up claims costs.Wildfires, hurricanes and floods force insurers to raise premiums and limit coverage.Reinsurance becomes more expensive, further increasing the risk for primary companies.Deloitte predicts that these losses will continue to grow.
What are the main trends in life insurance?
Answer: Life insurance growth is slowing due to changes in regulations and consolidation of distribution channels.At the same time, there is increased interest in annuities and alternative investments.Large investment groups are entering the sector through partnerships with traditional insurers.This is changing business models and capital strategies.
How AI is changing the insurance business?
Answer: Artificial intelligence is already delivering real results in the fight against fraud and process automation.Real-time AI analytics could save the industry up to $160 billion.Insurers are moving from test phases to full integration.However, this also raises the need for better cyber security.
What new opportunities does Deloitte see in 2026?
Answer: Group insurance offers serious potential through customized solutions for employees.Digital integration with HR platforms is becoming increasingly important for employers.Legislative changes in the US provide tax relief but create international ambiguities.Companies that respond flexibly will have an advantage.