Investment considerations for insurers in 2026
As the insurance industry looks toward 2026, uncertainty feels less like a temporary challenge and more like a feature of every strategic discussion.
In this environment, the decisions insurers consider, postpone, or prioritise may become just as important as the conditions themselves.
Macroeconomic conditions have become more demanding. Rate moves are less predictable, inflation persistence in some regions is altering liability behaviour, and across the APAC region refinement to regulatory regimes impact how capital strength is assessed. These forces may call for insurers to revisit asset allocation choices with discipline seeking alignment to balance sheet objectives. Firms that can run tighter capital optimisation routines, integrate scenario analytics into day-to-day decision making, and place a greater premium on liquidity planning should be better positioned to respond quickly as conditions shift.
AI is moving quickly from experimentation to integration across underwriting, claims, distribution, and investment functions. The potential upside can be significant, particularly where it could shorten processing times, improve portfolio analytics, or enhance customer outcomes. Yet the risks are equally real. Data governance gaps, model drift, operational fragility, and regulatory expectations around explainability all require careful attention. Some insurers are learning that AI adoption is not primarily a technology challenge but a risk governance challenge. In our view, the insurers that benefit most will be those that embed AI into existing control frameworks, rather than bolt it on to legacy processes.
Meanwhile, complexity is leading many insurers to seek partnerships as a mechanism for scaling capability, entering new markets, and gaining access to specialised expertise. Whether in technology, asset management, distribution, or data infrastructure, collaboration now appears part of the operating model. These relationships seem to be reshaping how insurers organise around growth by reducing time to market, broadening problem-solving toolkits, and offering more flexibility than traditional build-or-buy decisions. As business models evolve, we see partnership strategies are becoming a meaningful source of competitive differentiation.
Against this backdrop this year’s Top Considerations report explores five areas top of mind for insurers across 2026 as they navigate these challenges:
- Understanding the volatile market environment for insurers
- Potential AI risks and opportunities
- Potential drivers of growth in insurance investment partnerships
- Potential challenges and opportunities in private credit for insurers
- Unlocking the capital potential of insurers
