Outlook 2026: Agility will trump data in 2026

This year has witnessed the rapid advancement of AI and its application within the P&C insurance sector across Asia. As we look ahead to 2026, it is becoming clear that the next phase of transformation will be led by the emergence of AI-first companies. These are organisations whose operations and strategic initiatives are centered on harnessing AI at their core.

1. One of the most significant shifts we will observe is that data itself will no longer serve as a key differentiator among companies. In the past, the ability to source, curate and leverage superior data sets was crucial for developing more accurate predictive models and supporting sound decision-making. However, as AI technologies advance, enabling rapid extraction, ingestion and analysis of vast quantities of data, the competitive advantage derived from owning better data will diminish. Data will become increasingly commoditised, accessible to all, and no longer exclusive to organisations with deep pockets or sophisticated collection mechanisms. The democratisation of data will fundamentally reshape how companies seek differentiation in the marketplace.
2. In this new environment, the true differentiator will shift toward agility and adaptability. Companies that can quickly deploy predictive models—and, more importantly, continuously monitor their performance and recalibrate them in response to fast-changing macroeconomic variables, will stand out. The ability to anticipate and respond to external factors with speed and precision will be critical. This will require a robust AI infrastructure, dynamic data pipelines and organisational cultures that foster experimentation and rapid iteration.
3. We are already witnessing these trends unfold in Commercial and Specialty lines insurance. Insurers in these sectors are adopting more active portfolio management strategies, moving away from static per-risk underwriting in favor of dynamic, algorithmic business models.
4. In markets such as the London market and Bermuda, a growing share of insurance business is being written algorithmically or through Managing General Agents (MGAs). These developments point to a future where underwriting excellence will increasingly depend on the ability to tackle complex risks, nurture relationships and innovate in product design. Traditional underwriting will evolve with greater alignment between risk and capital, driven by sophisticated AI-powered analytics and management systems.
5. On the life insurance side, the landscape is also shifting. For several years, life insurers have been primarily focused on keeping pace with regulatory changes, such as the implementation of IFRS17 and Risk-Based Capital (RBC) frameworks. These compliance-driven initiatives have demanded significant resources and attention. However, as the regulatory environment stabilises and the pace of change slows, life insurance companies are poised to redeploy their capabilities.
6. The coming year will see a strategic pivot toward embracing new technologies more quickly, with AI leading the charge. The impact will be broad, touching everything from operational efficiency to product innovation and customer engagement. Historically, concepts such as digitalisation and hyper-personalisation have been associated mostly with non-life insurance. Now, we see these ideas gain traction in life insurance, thanks to advancements in AI, cloud computing and GPU technology. These will empower life insurers to deliver more personalised, customer-centric experiences, streamline modeling and respond to market shifts with unprecedented agility.
7. Recently, there has been an increase in capital investment in non-life insurance; however, as the market changes, some investments may move toward life insurance. This shift is likely to be associated with technology adoption, digitalisation and innovation in products and distribution, particularly for living benefits such as wellness and financial planning delivered through hybrid channels.

Embedded products will become even more attractive with AI significantly reducing costs of claims management. Given ongoing macroeconomic uncertainty and potential economic downturns, the counter-cyclical characteristics of life insurance could result in attention shifting to customer retention activities and a focus on wealth management products and services. The uptick seen in US investor appetite into cat bonds, ILS and sidecars will likely spread to other territories, including Asia with some regulators continuing to provide subsidies on alternative capital issuances.

As AI-first companies become the norm, the insurance industry in Asia, and globally, will undergo profound transformation, with technology driving the next chapter of growth and competitive advantage.

The views above were first published by Asia Insurance Review, December 2025 issue.

Author

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Mehul Dave

Asia Pacific P&C Leader, Insurance Consulting & Technoloyg

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