Growth in Insurance Series: Insurance Predictions 2026

As part of the Deloitte Insurance growth series, we continue to look to the year ahead and what this will mean for insurers.

There is no doubt that 2026 is set to be a big year. The impact of geopolitical shifts, rapid technological change, climate pressures, regulatory change, and evolving customer and community expectations will shape the market and have an impact on how insurers operate, compete, and serve their customers. As premium rate increases soften and margins come under pressure, boards and executives will need to carefully balance where to invest, what to prioritise, and how quickly to move. 

We present eight predictions for the Australian Insurance industry in 2026, informed by both local and global trends. Our predictions reveal how insurers can outcompete, outgrow, and deliver unparalleled value to customers, communities, and shareholders.

1. The finance functions as a strategic co-pilot - Finance will shift from “getting the numbers out” to helping leaders steer the business. 
2. Execution depends on people - The successful execution of strategic priorities will hinge on an insurer's ability to win the war for scarce digital and AI talent. 
3. The hyper-personalisation imperative will be taken to a new level by generative AI - It will evolve from real-time data to the re-imagination of the entire customer life cycle. 
4. The AI reckoning: From subscale to scale - Insurers will pivot from broad AI experimentation to a ruthless focus on measurable ROI, leading to pruning of initiatives that fail to demonstrate tangible value.
5. The regulatory squeeze tightens - Regulatory pressure will intensify, moving beyond financial reporting to demand demonstrable progress on operational resilience (CPS 230), AI governance, and climate risk management. 
6. The augmented claims professional: Efficiency through intelligent automation - Insurers will accelerate the deployment of AI, advanced analytics, and intelligent automation to build highly efficient, scalable, and more accurate claims functions. 
7. Climate unaffordability: The new front line - Insurers will use more granular climate data and modelling to price risk, driving premium increases and tighter risk appetite in high-risk zones. 
8. The mental health insurance ecosystem at a tipping point - The Australian insurance industry will be forced to take action on fundamentally reshaping its approach to mental health claims, moving from a reactive claims-based model to a proactive, preventative ecosystem built on cross-sector collaboration. 

2026 will demand bold, human-centric strategies from Australian insurers. It is the year to accelerate delivery of strategic priorities through better use of human and non-human workforce.

Growth in Insurance series:

• 2025 Insurance Predictions​