ICMIF Supporting Member EY has published the 2026 edition of its Global Insurance Outlook, exploring how insurers can convert persistent uncertainty and volatility into long-term opportunity as the industry looks ahead to 2026 and beyond.
The report finds that volatility is no longer a cyclical challenge for insurers, but a structural feature of the operating environment. Macroeconomic and geopolitical uncertainty, intensifying competition, new capital flows, disruptive technologies and regulatory fragmentation are collectively reshaping how insurers operate, compete and grow.
Against this backdrop, EY notes that global premium growth is expected to slow significantly, while cost pressures, geopolitical risk and trade disruption continue to weigh on margins. At the same time, the sector is undergoing profound change as private capital and non-traditional competitors play a growing role in product design, distribution, risk transfer and capital deployment.
Despite these headwinds, the Outlook argues that periods of uncertainty can create the conditions for bold strategies, innovation and sustainable growth. Individuals, businesses and communities are increasingly seeking protection against proliferating and interconnected risks, reinforcing the relevance of insurance at a time of global change.
Five priorities for insurers
The 2026 Global Insurance Outlook identifies five strategic priorities for insurers seeking to thrive in a volatile, low-growth environment.
Finding the right path to growth remains a central challenge as traditional growth avenues narrow. EY highlights an expected increase in mergers and acquisitions activity, driven by the search for new capabilities, technologies, scale and geographic diversification. Specialty lines, modular product design and closer collaboration with commercial clients are also identified as areas offering promising growth potential, alongside a more disciplined approach to capital allocation and portfolio optimisation.
Refreshing artificial intelligence strategies is another major focus of the report. While insurers have invested heavily in AI, EY suggests that many organisations are now rethinking their approach to move beyond pilots and incremental efficiency gains. Unlocking enterprise-level value will require redesigned customer experiences, dynamic underwriting, improved decision-making processes and a renewed focus on data quality, security and accessibility.
Preparing for market softening and ongoing uncertainty is also highlighted as a critical priority. EY notes that while cost optimisation will remain important, indiscriminate cost-cutting risks undermining future growth. Instead, insurers are encouraged to adopt more strategic approaches to cycle management, automation and sourcing models that enhance flexibility and capability as well as efficiency.
Engaging effectively with private capital is identified as one of the most significant strategic questions facing insurers today. The rapid expansion of private equity, private credit and other alternative capital providers is reshaping competitive dynamics across life, annuity and property and casualty markets. EY argues that insurers must determine how best to partner with, compete against, or learn from these players, as private capital becomes a permanent feature of the insurance landscape.
The report’s final priority focuses on retooling the workforce and culture. EY emphasises that successful transformation will depend on equipping people for an AI-augmented future, addressing critical skills gaps and fostering cultures that support innovation, collaboration and trust. Workforce transformation, the Outlook suggests, will be as important as technological change in enabling insurers to deliver long-term value.
Building trust for the future
A consistent theme running through the 2026 Outlook is the growing importance of trust as a strategic asset. EY argues that insurers that combine resilience, credible and responsible use of data and AI, and a clear customer focus will be best positioned to define the industry’s next chapter.
The report concludes that while today’s challenges are complex and persistent, insurers that commit to bold innovation, disciplined decision-making and purposeful transformation can convert uncertainty into opportunity and build a more resilient future for their organisations, customers and communities.
The EY 2026 Global Insurance Outlook includes detailed analysis and recommended actions across each of the five priority areas, offering practical insights for senior leaders navigating an increasingly volatile global insurance market.
Download the report.
