Change is certain – for insurers and insured
It is the Ancient Greek philosopher Heraclitus of Ephesus who is credited with the immortal words that the only constant in life is change.
As 2026 gathers momentum, it is clear that business as usual is not an option for insurers or brokers if they are to effectively respond to a changing global context or conditions at home that are severely impacting the sector.
How the insurance industry embraces change in 2026 will both be driven by, and have impacts on, business and individual clients.
A global industry
Insurance is very much a global industry – one of the largest – which is why EBM has made a point of forging global partnerships and connections, including memberships of the Worldwide Broker Network (WBN), GBN Worldwide, and Asia Australasia Alliance.
Last month, WBN CEO, Olga Collins, succinctly expressed the balancing act facing the sector and clients saying, ‘As we enter 2026, the global risk management and insurance industry finds itself balancing two competing realities: a softening market cycle offering some relief to buyers, and a world marked by volatility demanding sharper discipline from the entire value chain. Brokers, carriers, and clients alike are navigating an environment where economic strain, geopolitical instability, and transformed workplace expectations converge to reshape risk – and the business of managing it.’
According to a report from Ernst & Young and Insurtech Australia released in December, ‘the global insurance industry is on the verge of a new era in innovation’. It referenced the digital transformation underway, and how ‘products and processes are increasingly being designed around evolving customer expectations for seamless, digital and personalised experiences.’
Deloitte’s Centre for Financial Services’ 2026 Global Insurance Outlook tells a similar story, opening with: ‘Heading into 2026, there is little doubt insurers are entering an era of considerable uncertainty—from economic and geopolitical volatility to the increasing frequency and severity of catastrophic events. At the same time, clearly defined boundaries are blurring, distributors are consolidating and refashioning, and the technology landscape continues to alter business models. Layered onto this are rapidly evolving customer expectations, redefining what value, convenience, and trust mean in the context of insurance.’
In its Underwriting Trends Report 2026, Insurance technology (insurtech) company, Send, says ‘After several years of transition, insurers are now facing a convergence of softer pricing, rising operational complexity, intensifying regulatory oversight and the rapid industrialisation of AI. Together, these forces are reshaping how underwriters assess risk, manage portfolios and collaborate with brokers, MGAs and reinsurers.’
It lists 10 top trends:
- Softening rates are testing underwriting discipline
- Insurance operating models are being rebuilt
- Fragmentation defines the global risk landscape
- Operational fundamentals are no longer optional
- Connectivity between the broker and carrier becomes indispensable
- The underwriting talent pipeline is being reshaped
- Reinsurance enters its next era
- AI moves from hype to underwriting impact
- Parametric solutions narrow the protection gap
- Regulation becomes a strategic pressure point.
Local challenges, local action
At its national conference last October, Insurance Council of Australia Chair, Steve Johnston summarised the industry’s major challenges of the last five years. ‘The post COVID economic distortions, the hyperinflation, and the once in a generation reset in global reinsurance markets have collectively challenged the industry unlike any other period in recent history.’
APRA’s Executive Board Member, Suzanne Smith, said that in the year ahead, ‘Risks are on the rise, with businesses facing geopolitical instability, cyber threats and a changing climate. Despite these evolving challenges, communities continue to expect that insurers get the basics right. Each claim filed tests how well those expectations are met. Enhancing consumer understanding of policies is vital, or diminishing trust could undermine the social licence of insurers.’
APRA is the independent statutory authority that supervises institutions across banking, insurance and superannuation and Ms Smith had some clear, specific challenges for the industry, based on the conference themes of resilience, innovation and leadership:
- Master the basics, every day – how you run your business, manage risks, treat customers, innovate products and, ultimately, build trust and resilience in your industry.
- Embrace innovation – to futureproof insurance, support a thriving, competitive industry, improve customer engagement, deliver cost efficiencies to address affordability pressures, and to identify and respond to risks.
- Lead with a strong risk culture – boards that drive real change, executives who challenge constructively and staff who feel safe to speak up; clear roles and accountability; a risk culture embraced across the organisation.
Ms Smith also acknowledged APRA’s own challenges to ‘get the balance right including progressing a range of initiatives to minimise regulatory burden for the industry to support productivity’. ‘For the general insurance sector, areas of focus include:
- the adjustments of reinsurance settings to promote cost-effective access
- the ongoing review of data collections; and
- the identification of data sharing opportunities with other government agencies to minimise complexity and duplication.’
ICA Chair, Steve Johnston outlined its key strategic pillars for 2026 to the same conference – ‘Continuing to advance the case for resilience and mitigation, partnering to address the affordability challenge, innovating around new product design, updating the code and arguing for tax reform.’
That will include a rewrite of the General Insurance Code of Practice as part of the response to the Parliamentary Inquiry into insurers’ responses to 2022 major floods claims which reported in October 2024.
‘While there is still much that needs to be done there is no question that our industry has responded well (to the Inquiry’s report). All industry participants have made the investments that will substantially improve our preparedness and response to future events of this magnitude.’
Deloitte’s Centre for Financial Services’ 2026 Global Insurance Outlook details five key pieces of advice for insurers worldwide. ‘As the landscape becomes more complicated and uncertain, it is important for insurers to consider greater investment in the right partnerships, people and innovative tools,’ it says, under the heading ‘The time is now to walk the talk.’
Moving into 2026, insurers could:
- Invest in modernisation and ensure good quality of data: Embrace AI, strengthen data foundations, and modernise core systems to enhance efficiency, improve customer experience and mitigate risks.
- Transform the workforce: Attract, retain and upskill the workforce to meet the demands of a digital-first environment.
- Forge strategic partnerships: Collaborate with technology providers, reinsurers and other stakeholders to access new capabilities, share risk, and develop and deploy innovative products and services more effectively and efficiently.
- Prioritise customer-centricity: Meet evolving customer expectations for speed, convenience, and personalised experiences with a holistic approach, which should involve integrated digital and human touchpoints to deliver seamless and empathetic service.
- Shift to proactive risk management: Leverage data-driven insights, invest in predictive modelling and work with stakeholders to implement preventative measures to mitigate losses.
Customers – driving force
Customers are a driving force of change in the insurance industry as it adapts and innovates to meet global and local challenges.
Industry leaders, regulators and analysts have given some indication of what business might expect in three key areas in 2026:
- When it comes to product innovation:
‘It’s time for insurance to modernise, for products to be designed to meet the needs of customers in areas where traditional products simply can’t respond,’ ICA Chair Steve Johnston told its October 2025 conference.
‘Going forward, we need to work constructively with government on solutions. We need to innovate at pace, and we need to be able to recognise risk mitigation and resilience in pricing.’
‘It’s in this spirit the industry stands ready to work with Government on solutions to the affordability challenges facing customers in our most exposed geographies. Our social license dictates we cannot be an industry for 70 or 80 percent of the population. Through our own efforts, and in partnership with the Government, we must strive to provide affordable insurance for all our citizens.’
Insurtech company, Send’s Top 10 insurance trends shaping underwriting in 2026 also says ‘The ability to harness data is accelerating product innovation to address protection gaps, while investment in InsurTech, particularly underwriting solutions and claims processes, is soaring as carriers battle to remain competitive using technology to their advantage.’
- When it comes to communication and transparency
APRA’s Executive Board Member Suzanne Smith gave ICA conference delegates a powerful reminder to put the customer at the centre of innovation.
‘While I encourage you to embrace innovation, I have one reminder: solve for the customer – and do this transparently. What more can you do to help your customer understand why their premium has changed, the factors that contribute to an increasing price and importantly what role, if any they can play to bring the cost down? Transparency builds trust – and trust builds your business.’
Brokers are acutely aware that quality two-way communication with clients is key. As NIBA’s October 2025 research report pointed out, ‘The Vero 2025 SME Insurance Index reveals that most businesses don’t fully comprehend the consequences or aren’t concerned about underinsurance. This highlights an urgent need for education about critical risks of underinsurance.’
- When it comes to working with brokers
Vero’s SME Insurance Index delivers insights on Australian business trends using quantitative and qualitative data on insurance attitudes, behaviours and expectations of Australian businesses.
In introducing its 2025 report, Head of Distribution, Commercial Insurance, Anthony Pagano said ‘As economic pressures, technological advancements and emerging global challenges reshape the landscape, businesses are increasingly looking to the insurance industry not just for coverage, but for strategic support in managing complex and evolving risks.
‘Insurance brokers are at the forefront of this shift, with their expertise becoming integral to helping clients make informed decisions and protect what matters most.’
The role of brokers as key partners to business is only set to strengthen in the years ahead.
‘As we look toward 2035,’ NIBA,’s Ready or Reacting? report states, ‘the role of the broker is undergoing a transformation. No longer confined to transactional functions, brokers are emerging as strategic advisers, educators, and resilience champions anchoring trust in a world shaped by volatility, complexity, and innovation.
‘The global risk landscape is undergoing a dramatic shift… In this evolving context, brokers are not just intermediaries, they are interpreters of risk. Their ability to translate complex data into actionable insights is becoming indispensable, especially as businesses grapple with the unfamiliar.
‘The Insurance Council of Australia sees brokers as embedded players in national resilience efforts, leveraging data, advocating for policy reform, and supporting communities through risk mitigation and recovery.’
In her opinion piece reported widely last month, WBN CEO, Olga Collins said ‘2026 is the year to lead with clarity, helping clients turn uncertainty into opportunity through insight, collaboration, and foresight. The risks are evolving, the market is softening, and organisations are demanding more partnership and insight from their advisors. For brokers, this means elevating our role as connectors – across markets, across borders, and across disciplines. At WBN, we’ve always believed in the power of global collaboration and local expertise. In 2026, that belief becomes not just an advantage, but a necessity.
‘The broker’s role will continue to shift from transactional to consultative. In today’s environment, helping clients understand and define their risk-bearing ability and appetite is critical. This will require deeper analytics, scenario planning, and alignment of risk strategy with business goals.’
Key takeaway
The global insurance industry enters 2026 facing pressures shared by many business sectors, including economic pressures, geopolitical volatility, and the increased frequency and severity of catastrophic events.
Locally, the emphasis in on clients as the industry moves forward with digital transformation workforce changes, improved communication and transparency, innovation and a focus on communication and transparency.
In this dynamic context, business can be proactive too, managing risk proactively and working in partnership with their strategic risk partners to explore and identify the best risk management solutions.
Need expert guidance?
Talk to your EBM Account Manager about risk management in 2026. Your broker can help you assess the risks specific to your business and explore the insurance policy options best suited to you and your business.
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