Written by Andrew Doran, CEO at UnderwriteMe
I stepped into the role of CEO at UnderwriteMe in April 2025, having spent the previous five years as Global Chief Underwriting Officer at Pacific Life Re. Switching from reinsurance to Insurtech has been eye-opening. In reinsurance, the focus is often on large-scale risk management, with innovation happening in more measured increments. In contrast, Insurtech thrives on rapid experimentation, customer and product-centricity, and the relentless pursuit of efficiency through technology. As we approach 2026, I believe the challenge for the underwriting and protection industry next year lies in aligning technological ambition with real-world application, ensuring we do not lose sight of our purpose: to provide confidence for generations, and make insurance accessible to everyone.
Market Landscape: Navigating Complexity and Change
In 2025, the insurance market has faced several new challenges. Firstly, the on-going FCA Market Study due to be released in 2026 (following on from the consumer research it published just last week), highlighting several challenges the industry is experiencing – from rising costs and squeezed margins, to finding the balance between simplicity for consumer and individual product suitability. Secondly, resource challenges seem to be at an all-time high, particularly across underwriting and claims where the industry is grappling with a shortage of skilled talent both in terms of delivering day-to-day for customers, but also in being able to create the time to make impactful changes for the future. Thirdly, the continued market consolidation, which we see across markets in and out of the UK. Mergers and acquisitions continue to become more commonplace and a worrying trend for our industry. For Insurtech, the imperative is clear: we must remain customer-focused and agile to resulting changes ahead.
Innovation and AI: Promise and Reality
It’s fair to say that no matter which Insurer, Insurtech, or Distributor you speak to, in any market, they all boast an AI strategy. But probably what’s been most striking in 2025 is the mainstreaming of AI into day-to-day processes by non-data science professionals, and the signs that we’re about to turn the corner in using modern AI approaches in day-to-day Underwriting, Claims, and New Business processes in general.
Yet, if we are candid, delivery has almost never kept pace with expectation. Many firms find themselves stuck running multiple pilots and struggling to scale initiatives beyond proof-of-concept. There are plenty of reasons for this, of course, whether legacy systems, data availability, talent, or (commonly right now) risk and regulation. Whether the best solution to a problem is AI (or not) has always been irrelevant in my opinion; the biggest cause of delay is when decisions to move forward are made too slowly. That’s not to say that due diligence should not be done carefully, but waiting for the perfect solution can often get in the way of making an incremental difference now and building towards your future vision. Solving the problem statement quickly, scalably, and effectively should be the biggest motivator for success.
Products should be built to add meaningful value and delight customers in the real world, rather than chase for perfection. We want to get our products into customers’ hands quickly and work with them to incrementally build value for their business at pace.
Shaping The Future
From speaking with distribution and industry leaders with technology partners this year, I believe two key themes have emerged. Firstly, what many are describing as omni-channel distribution, essentially the shifting towards how we engage with consumers more on their terms, bringing them access to protection when they want it, in a way that is most comfortable and convenient to them.
Secondly, the continued scrutiny on data security, particularly with the increasing reliance on technology. As this accelerates, so does the imperative to safeguard customer data to maintain the consumer trust that the industry is built upon. Cyber threats are becoming increasingly sophisticated, so for Insurtech, Insurers, and Distributors alike, having robust data security is not just a technical issue, it might become a strategic differentiator for those who can do it best.
I think the consensus is clear: those who can blend digital convenience with the human touch will continue to be best placed to win trust and loyalty from consumers. This has no doubt been said many times, and I don’t think that is likely to change any time soon.
Looking Ahead: Priorities for 2026
As I look to 2026, I genuinely think we’ll see some of the bigger changes come this year than we have over the last five years. Is this the year where we see scalable modern AI products being fully integrated into underwriting and claims processes? Almost certainly.
Those who balance customer-centricity with the drive for technology innovation at pace (with one careful eye on security and regulation), those who can incrementally move forward without falling victim to decision-paralysis will be best positioned to succeed in 2026.
