The insurance industry continues to evolve at a rapid pace, shaped by rising customer expectations, accelerating automation, workforce pressures, and an increasingly complex risk environment. As we look ahead to 2026, insurers face a new set of operational realities that will demand both smarter systems and more human-centered leadership.
In this article, we’re highlighting the top 2026 insurance operations strategy trends to watch and, more importantly, what they mean for leaders of claims, operations, and IT. These are not abstract predictions. They are changes already taking shape across carriers, MGAs, and insurtechs today.
Ready to look ahead? Let’s explore the trends that will define insurance operations in 2026.
2026 Insurance Operations Strategy Trend #1: Empathy Becomes an Operational KPI
Empathy is no longer just a brand value or a training topic. In 2026, it becomes a measurable operational priority. As policyholders continue to experience higher stress from weather events, economic pressure, and life disruption, insurers are being judged not just on speed and accuracy, but on how interactions feel.
Operations leaders are increasingly responsible for ensuring that empathy shows up consistently across FNOL, claims handling, customer service, and even written communications.
Why It Matters To Insurance Operations Leaders:
Empathetic experiences drive higher satisfaction, better retention, and fewer escalations. For operations leaders, this directly impacts call volumes, rework, complaint ratios, and regulatory risk. Empathy is becoming a lever for both experience and efficiency.
What to Watch For:
- Greater emphasis on soft-skill coaching and QA frameworks that measure tone, clarity, and care
- Hybrid AI and human models that support agents in high-emotion moments rather than replacing them
- Increased outsourcing of customer-facing functions to partners trained specifically in insurance empathy
- Closer alignment between CX, operations, and compliance teams
2026 Insurance Operations Strategy Trend #2: AI Moves Fully Into Production
In 2025, many insurers experimented with AI. In 2026, AI is no longer experimental. It is embedded directly into day-to-day operations. Leaders are moving past pilots and proofs of concept and into scaled deployment across FNOL intake, document handling, quality assurance, analytics, and workflow routing.
The focus shifts from “Can we use AI?” to “Is it working, compliant, and trusted?”
Why It Matters To Insurance Operations Leaders:
AI in production can dramatically reduce cycle times, improve consistency, and help teams manage volume without adding headcount. But it also introduces new accountability for accuracy, explainability, and governance.
What to Watch For:
- AI-assisted FNOL and claims intake operating alongside live agents
- Automation embedded within core systems of record rather than standalone tools
- Stronger guardrails around data security, model oversight, and audit readiness
- Growing reliance on partners that provide AI-enabled services rather than tools alone
2026 Insurance Operations Strategy Trend #3: Surge Readiness Becomes a Core Capability
Extreme weather events and unexpected volume spikes are no longer outliers. In 2026, surge readiness becomes a standard operational requirement, not an emergency response. Carriers are expected to scale instantly while protecting the policyholder experience.
Operations leaders are being asked to plan for variability, not averages.
Why It Matters To Insurance Operations Leaders:
Poor surge handling leads to long hold times, backlogs, compliance risk, and damaged trust. Leaders who can prove surge preparedness gain confidence from executives, regulators, and customers alike.
What to Watch For:
- More realistic surge capacity models for FNOL, claims, and customer service
- Experience guarantees during high-volume events
- Increased use of onshore outsourcing for predictable compliance and quality
- Scenario planning tied to climate, geography, and portfolio exposure
2026 Insurance Operations Strategy Trend #4: Compliance Pressure Intensifies Across Channels
Regulatory scrutiny continues to increase, especially as communication channels multiply. In 2026, compliance is not just about policies and audits. It is embedded into workflows across calls, mail, digital documents, and customer interactions.
Operations leaders are responsible for ensuring consistency, traceability, and proof across every touchpoint.
Why It Matters To Insurance Operations Leaders:
Non-compliance creates real financial and reputational risk. At the same time, over-manual compliance processes slow teams down. Leaders must balance rigor with efficiency.
What to Watch For:
- Greater demand for proof of delivery, proof of mail, and documented workflows
- Increased integration between print, mail, and digital communications
- Outsourcing of regulated processes to vendors with compliant infrastructure
- Automation designed to support audits rather than create black boxes
2026 Insurance Operations Strategy Trend #5: Outsourcing Vendors Transform from Cost Reduction to Strategic Advantage
Outsourcing in insurance is undergoing a fundamental shift. In 2026, the most effective outsourcing partners are no longer positioned as low-cost labor providers. They are strategic operators helping carriers protect the policyholder experience, manage risk, and scale through volatility.
At the same time, leading outsourcing vendors are transforming their own models. They are investing in technology, compliant infrastructure, and hybrid human plus AI workflows to meet modern insurance operations demands cost-effectively and with excellence.
Why It Matters To Insurance Operations Leaders:
Operations leaders need partners that can deliver consistency during both steady-state operations and surge events. Traditional outsourcing models struggle to keep pace with rising expectations for empathy, compliance, and speed. Strategic outsourcing reduces operational risk while preserving flexibility.
What to Watch For:
- Outsourcing providers embedding AI directly into service delivery to offer the benefits of AI without big implementation projects
- Hybrid models pairing trained insurance professionals with AI-assisted workflows
- Experience guarantees for surge readiness and experience consistency
- Greater focus on regulated workflows like FNOL, claims intake, and customer communications
- Longer-term partnerships built around resilience rather than short-term cost savings
Conclusion
2026 will reward insurance operations leaders who can balance efficiency with empathy, automation with accountability, and scale with care. The carriers that succeed will be those that treat operations not as a cost center, but as a strategic engine for trust, resilience, and growth.
One thing is clear. Insurers cannot navigate these shifts alone. Specialized partners like Covenir play an increasingly important role in helping carriers manage volume, stay compliant, and deliver experiences that truly WOW policyholders.
Learn more about how Covenir helps insurance operations leaders prepare for what’s next. Schedule a 15-minute introduction.