The broad predictions made for insurance in 2026 have largely held up. But according to analysis from Tietoevry, the story emerging from the first quarter is not simply one of trends playing out, it is about which insurers can translate ambition into something controllable, governable and credible enough to scale.
Artificial intelligence remains the industry’s dominant conversation, but its character has shifted decisively. Compliance, supervision, explainability and responsible usage have replaced enthusiasm for proofs of concept. The European Insurance and Occupational Pensions Authority’s 2026 agenda reflects precisely that shift, with AI governance sitting firmly at the top of its priorities. Tietoevry’s analysis is unambiguous: governance has overtaken novelty as the defining lens through which insurers are now judged.
On the investment side, InsurTech funding remains active but increasingly selective. February alone saw more than $1bn flow into the sector, yet the deals attracting attention are those with sound business logic, it said. Broad-based exuberance is giving way to a market that rewards fundamentals.
Operational resilience has moved from the IT department to the boardroom. Following guidance published by the Financial Conduct Authority on third-party and operational incident reporting, and with the European Commission pushing hard on resilience amid geopolitical, natural and cyber disruptions, legacy systems can no longer be treated as technical housekeeping. They are business risks, and Q1 made that reclassification explicit.
Talent dynamics are shifting too. Hiring has not stopped, but the focus has moved from headcount to productivity. Technology, underwriting and claims remain areas of strong demand, yet Q1 labour data suggests that how work gets done is the more pressing question. The human element is gaining renewed prominence precisely because AI is changing what surrounds it.
Geopolitics has moved well beyond background noise. The European Central Bank’s risk assessments cited geopolitical tensions explicitly, with inflation expected to rise in Q2 linked to the Middle East situation. For insurers, this is no longer an abstract macro variable, it carries direct consequences for risk appetite, capital planning and cyber exposure.
Tietoevry’s scorecard of ten insurance trends shows seven scoring four or five out of five for Q1 confirmation.
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