The InsurTech sector is having a strong year, with over $2.7bn raised by companies during the first six months of the year in InsurTech. As the market starts to soften and more companies look to expand, what trends will shape the rest of 2026?
FinTech Global recently sat down with experts from the InsurTech sector to get their thoughts on the developments that will shape the next few months. They were all asked to think back over the past six months to anything that surprised them and what 2026 would need to deliver for it to be deemed a successful year for InsurTech, what is keeping insurance firms up at night and what should be at the top of priority lists for H2.
As for what would make 2026 a successful year for InsurTech, Simon Fagg, SVP of insurance and Go-To-Market at IntellectAI, kicked off by outlining some things the sector should stop doing first. Point solutions and a wave of AI pilots that have entered the space over the past couple of years have not delivered the production value they should have.
“I think what we need is true proof points. So, with regards to AI, where does it actually generate value. What we need to underpin that is a foundation of governance, essentially, and ensuring that we are tracking that value, the transformation that comes from implementing AI back to something that is measurable.”
From a production capacity perspective, players across the value chain are all going to have different needs and identifying where the near-term value sits is something they will need to assess internally.
Ido Deutsch, chief revenue officer at Producerflow, had a similar opinion, noting how many firms spent the first half of 2026 trying to adopt AI tools. He said, “A lot of AI companies went with broad solutions and tried to solve everything with AI sprinkled on top. It didn’t really deliver very well.”
For the second half of the year, Deutsch believes a lot of companies will need to hone in on the fundamentals and understand what problems they are solving. While AI is a great technology that can transform workflows, it cannot be done without solving the infrastructure and fragmented data challenges.
He added, “My prediction for the second half is that a lot of companies will start focusing more on infrastructure, more on solving the basics to then build models on top of that.”
Finally, Dan Simmons, managing director and founder at Quensus, moved away from AI and to improving claims. He said, “We need to link tangible evidence of claim reduction to the predict-and-prevent model.
“One of the things we are doing is a great project called the water insurance nexus, which is a funded project by water regulators so that we’re bringing in installers, water companies, insurers and facilities management teams all in the same project so we can prove through 30 buildings and over a thousand sensors that the data generated from IoT sensors can be explained in a way that is tangible and has actionable insights for the people who are actually solving these problems… so that the feedback loop can be implemented on a dashboard, in real time for all stakeholders.”
For more insights into the first six months in InsurTech, watch the video to get insights from:
- Simon Fagg, SVP of insurance and go-to-market at IntellectAI
- Ido Deutsch, chief revenue officer at Producerflow
- Dan Simmons, managing director and founder at Quensus
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