Insurers will prioritize customer experience next year as declining customer satisfaction highlights the need to focus on customer retention.This is one of Forrester's predictions for the insurance industry for 2026.
Meanwhile, the increased use of artificial intelligence to increase operational efficiency will bring significant change to the insurance industry.Additionally, cyber insurance will rapidly expand to combat the new threats posed by AI.Insurers will re-enter high-risk property markets thanks to new underwriting techniques.And microinsurance providers will find new opportunities in the growing freelance economy, also known as the „gig“economy.
Forrester's five predictions for 2026:
1.Property and casualty insurers
Property and casualty insurers will increase their investment in customer experience to increase customer engagement.Forrester's Customer Experience Index scores for U.S. auto and home insurers fell in 2025. Declining customer satisfaction was fueled by double-digit rate increases.Growing mistrust and frustration have also led to customer retention problems.
Insurers identify customer experience as a key driver of financial performance and a way to differentiate themselves from competitors.
2.Cyber insurance
Cyber insurance will grow as new AI threats and data needs emerge.Forrester states that cyber insurers must go beyond providing financial protection and become active partners in cybersecurity by providing cybersecurity services, risk mitigation tools, and innovative ways to address new risks posed by artificial intelligence.
3.The cost factor
The expense ratio of the 50 largest insurers will decrease due to artificial intelligence and automation.Insurance growth slows globally after strong 2024, says Forrester.Insurers are redoubling their automation efforts, with improvements to claims processing and back-office processes at the center of this shift.
Forrester recommends that insurers develop an AI strategy focused on cost efficiency, prepare their data for AI and automation, and embed AI into their core operations to reduce cost ratios.
4.Insurers
An insurer will return to the property insurance market in California or Florida in a new way.The increasing frequency and severity ...
Insurers will prioritize customer experience next year as declining customer satisfaction highlights the need to focus on customer retention.This is one of Forrester's predictions for the insurance industry for 2026.
Meanwhile, the increased use of artificial intelligence to increase operational efficiency will bring significant change to the insurance industry.Additionally, cyber insurance will rapidly expand to combat the new threats posed by AI.Insurers will re-enter high-risk property markets thanks to new underwriting techniques.And microinsurance providers will find new opportunities in the growing freelance economy, also known as the „gig“economy.
Forrester's five predictions for 2026:
1.Property and casualty insurers
Property and casualty insurers will increase their investment in customer experience to increase customer engagement.Forrester's Customer Experience Index scores for U.S. auto and home insurers fell in 2025. Declining customer satisfaction was fueled by double-digit rate increases.Growing mistrust and frustration have also led to customer retention problems.
Insurers identify customer experience as a key driver of financial performance and a way to differentiate themselves from competitors.
2.Cyber insurance
Cyber insurance will grow as new AI threats and data needs emerge.Forrester states that cyber insurers must go beyond providing financial protection and become active partners in cybersecurity by providing cybersecurity services, risk mitigation tools, and innovative ways to address new risks posed by artificial intelligence.
3.The cost factor
The expense ratio of the 50 largest insurers will decrease due to artificial intelligence and automation.Insurance growth slows globally after strong 2024, says Forrester.Insurers are redoubling their automation efforts, with improvements to claims processing and back-office processes at the center of this shift.
Forrester recommends that insurers develop an AI strategy focused on cost efficiency, prepare their data for AI and automation, and embed AI into their core operations to reduce cost ratios.
4.Insurers
An insurer will return to the property insurance market in California or Florida in a new way.The increasing frequency and severity of natural disasters, combined with social inflation, have discouraged insurers from operating in the California and Florida property insurance markets.But Forrester predicts that techniques like the use of IoT devices and smart home data, along with driving risk mitigation and home fortification, will allow insurers to create customized protection products for these high-risk markets.
5.Microinsurance
Microinsurance to expand 5% as „gig“the economy.Forrester states that this segment of the labor market is expected to exceed $600 billion in 2025 and continue to grow.As more professionals rely on project-based income without traditional employer benefits, the need for affordable and flexible protection increases and creates strong demand for alternative insurance solutions.To serve these people, insurers need to provide them with the right coverage, simplify the underwriting process and use digital channels to provide modular, low-cost protection that fits these flexible business models.
Frequently Asked Questions
How will insurers improve the customer experience in 2026?
Answer: Insurance companies will invest more in digital channels and personalized communication.Service and claims processes will be optimized to ensure faster and easier access to services, increasing customer trust and engagement.
How will artificial intelligence reduce costs in insurance?
Answer: Artificial intelligence will automate claims processing and back office operations, reducing administrative costs and response times.Algorithms will support decision making, data analysis and more accurate risk assessment.
What new risks does artificial intelligence pose for cyber insurance?
Answer: AI creates new threats such as deepfakes, automated cyberattacks and data manipulation.In response, insurers will offer not only benefits but also preventive services such as monitoring, protection tools and real-time risk analysis.
Why will microinsurance grow with the gig economy?
Answer: Freelancers and freelancers do not have access to traditional packages through an employer.They are looking for flexible and affordable solutions tailored to their personal needs.Microinsurance offers modular products with low premiums and easy access via mobile apps.
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Insurers will prioritize customer experience next year as declining customer satisfaction highlights the need to focus on customer retention.This is one of Forrester's predictions for the insurance industry for 2026.
Meanwhile, the increased use of artificial intelligence to increase operational efficiency will bring significant change to the insurance industry.Additionally, cyber insurance will rapidly expand to combat the new threats posed by AI.Insurers will re-enter high-risk property markets thanks to new underwriting techniques.And microinsurance providers will find new opportunities in the growing freelance economy, also known as the „gig“economy.
Forrester's five predictions for 2026:
1.Property and casualty insurers
Property and casualty insurers will increase their investment in customer experience to increase customer engagement.Forrester's Customer Experience Index scores for U.S. auto and home insurers fell in 2025. Declining customer satisfaction was fueled by double-digit rate increases.Growing mistrust and frustration have also led to customer retention problems.
Insurers identify customer experience as a key driver of financial performance and a way to differentiate themselves from competitors.
2.Cyber insurance
Cyber insurance will grow as new AI threats and data needs emerge.Forrester states that cyber insurers must go beyond providing financial protection and become active partners in cybersecurity by providing cybersecurity services, risk mitigation tools, and innovative ways to address new risks posed by artificial intelligence.
3.The cost factor
The expense ratio of the 50 largest insurers will decrease due to artificial intelligence and automation.Insurance growth slows globally after strong 2024, says Forrester.Insurers are redoubling their automation efforts, with improvements to claims processing and back-office processes at the center of this shift.
Forrester recommends that insurers develop an AI strategy focused on cost efficiency, prepare their data for AI and automation, and embed AI into their core operations to reduce cost ratios.
4.Insurers
An insurer will return to the property insurance market in California or Florida in a new way.The increasing frequency and severity ...
Insurers will prioritize customer experience next year as declining customer satisfaction highlights the need to focus on customer retention.This is one of Forrester's predictions for the insurance industry for 2026.
Meanwhile, the increased use of artificial intelligence to increase operational efficiency will bring significant change to the insurance industry.Additionally, cyber insurance will rapidly expand to combat the new threats posed by AI.Insurers will re-enter high-risk property markets thanks to new underwriting techniques.And microinsurance providers will find new opportunities in the growing freelance economy, also known as the „gig“economy.
Forrester's five predictions for 2026:
1.Property and casualty insurers
Property and casualty insurers will increase their investment in customer experience to increase customer engagement.Forrester's Customer Experience Index scores for U.S. auto and home insurers fell in 2025. Declining customer satisfaction was fueled by double-digit rate increases.Growing mistrust and frustration have also led to customer retention problems.
Insurers identify customer experience as a key driver of financial performance and a way to differentiate themselves from competitors.
2.Cyber insurance
Cyber insurance will grow as new AI threats and data needs emerge.Forrester states that cyber insurers must go beyond providing financial protection and become active partners in cybersecurity by providing cybersecurity services, risk mitigation tools, and innovative ways to address new risks posed by artificial intelligence.
3.The cost factor
The expense ratio of the 50 largest insurers will decrease due to artificial intelligence and automation.Insurance growth slows globally after strong 2024, says Forrester.Insurers are redoubling their automation efforts, with improvements to claims processing and back-office processes at the center of this shift.
Forrester recommends that insurers develop an AI strategy focused on cost efficiency, prepare their data for AI and automation, and embed AI into their core operations to reduce cost ratios.
4.Insurers
An insurer will return to the property insurance market in California or Florida in a new way.The increasing frequency and severity of natural disasters, combined with social inflation, have discouraged insurers from operating in the California and Florida property insurance markets.But Forrester predicts that techniques like the use of IoT devices and smart home data, along with driving risk mitigation and home fortification, will allow insurers to create customized protection products for these high-risk markets.
5.Microinsurance
Microinsurance to expand 5% as „gig“the economy.Forrester states that this segment of the labor market is expected to exceed $600 billion in 2025 and continue to grow.As more professionals rely on project-based income without traditional employer benefits, the need for affordable and flexible protection increases and creates strong demand for alternative insurance solutions.To serve these people, insurers need to provide them with the right coverage, simplify the underwriting process and use digital channels to provide modular, low-cost protection that fits these flexible business models.
Frequently Asked Questions
How will insurers improve the customer experience in 2026?
Answer: Insurance companies will invest more in digital channels and personalized communication.Service and claims processes will be optimized to ensure faster and easier access to services, increasing customer trust and engagement.
How will artificial intelligence reduce costs in insurance?
Answer: Artificial intelligence will automate claims processing and back office operations, reducing administrative costs and response times.Algorithms will support decision making, data analysis and more accurate risk assessment.
What new risks does artificial intelligence pose for cyber insurance?
Answer: AI creates new threats such as deepfakes, automated cyberattacks and data manipulation.In response, insurers will offer not only benefits but also preventive services such as monitoring, protection tools and real-time risk analysis.
Why will microinsurance grow with the gig economy?
Answer: Freelancers and freelancers do not have access to traditional packages through an employer.They are looking for flexible and affordable solutions tailored to their personal needs.Microinsurance offers modular products with low premiums and easy access via mobile apps.