TLDR
- 81% of insurance operations organizations are outsourcing, up from 70% just one year ago.
- 100% of executives rate outsourcing as extremely or very important to their future success.
- 29% now expect outsourcing partners to have AI solutions embedded in their services.
- 20% want a strategic partnership; 20% want deep insurance industry expertise.
- The full findings are in Covenir’s 2026 Insurance Operations Leaders Trends Report.
Introduction
For the last two years, my team has surveyed insurance operations leaders across carriers, MGAs, and Insurtechs to find out what’s on the minds of the people responsible for the day-to-day work that keeps the industry running. The output, the Insurance Operations Leaders Trends Report, tracks what’s changing, what’s holding steady, and what’s emerging.
This year one of the most significant shifts showed up in the outsourcing data. Not just in how many organizations are outsourcing, but in what they’re asking for when they do.
The Numbers
81% of insurance operations organizations are now outsourcing at least some operational functions. That’s up from 70% just one year ago, an 11-point jump in a single year. And 100% of executives rate outsourcing as extremely or very important to their organization’s future success.
When you look at what they’re asking for from partners, the shift becomes clear. 29% now expect outsourcing partners to have AI solutions embedded in their services. 20% want a strategic partnership. 20% want deep insurance industry expertise. 19% cite compliance as their top concern.
What’s Driving the Shift
In conversations with our clients and prospects, I hear the same pressures on repeat. Teams are more stretched than ever. 65% of respondents in our survey say their teams feel more strained than they ever have. Headcount is being reduced in a meaningful portion of organizations. Training investment is declining.
At the same time, AI is accelerating. 70% of organizations now have AI running in live operations, up from 58% last year. Among the most advanced AI users, the ones running AI across multiple operational functions, 54% say headcount is where they plan to reduce investment most in 2026. That’s more than five times the rate of less mature organizations.
What the data shows is that outsourcing is increasingly part of how organizations are managing this transition. Partners who bring AI capability into the relationship aren’t just providing capacity. They’re part of the operational strategy.
What This Looks Like at Covenir
I can’t speak to what’s driving decisions at other organizations. What I can tell you is how we’re responding to what the data shows.
We’ve built our services around the expectation that partners need to bring AI to the table, not just headcount. That means AI agent intake through our Covenir IntellAgent service, live AI coaching for human agents through Covenir Agent Coach, and management insights that give operations leaders something actionable from their interaction data, not just call summaries.
We’ve also maintained our commitment to insurance-trained professionals and the compliance rigor that 19% of respondents cited as their top outsourcing concern.
The bar has moved. We’re building to meet it.
There’s More in the Report
The outsourcing findings are part of a broader picture that also covers the AI readiness gap, the brand promise breakdown at FNOL, and the operational insights problem holding back the middle of the market. If any of this resonates with what you’re seeing in your own operations, the full report is worth your time.
Download the 2026 Insurance Operations Leaders Trends Report
Frequently Asked Questions
What are insurance operations outsourcing expectations in 2026?
Covenir’s 2026 survey found that 29% of insurance operations leaders now expect outsourcing partners to have AI solutions embedded in their services. They’re also looking for strategic partnership (20%), deep insurance industry expertise (20%), and strong compliance management (19%). 81% of organizations are currently outsourcing, up from 70% in 2025.
Why is insurance operations outsourcing growing so quickly?
Outsourcing adoption jumped from 70% to 81% in a single year, according to Covenir’s 2026 Insurance Operations Leaders Trends Report. The survey found that 65% of operations teams are more stretched than ever, training investment is declining, and AI is advancing faster than internal capability in many organizations.
What do insurance operations leaders want from an outsourcing partner?
The top expectations from Covenir’s 2026 survey: AI solutions embedded in services (29%), strategic partnership (20%), deep insurance industry expertise (20%), and compliance rigor (19%). 100% of executives rate outsourcing as extremely or very important to their organization’s future success.
How does outsourcing fit into an insurance AI strategy?
Among the most advanced AI users in Covenir’s 2026 survey, those running AI across multiple operational functions, 54% are reducing headcount alongside their AI investment. The survey shows outsourcing partnerships are increasingly part of how organizations sustain service quality through that transition.
What should insurers look for in an outsourcing partner in 2026?
Based on what operations leaders told us in the 2026 survey, the priorities are AI capability embedded in services, deep insurance expertise, compliance transparency, and the ability to scale during surge events. The full report includes detailed breakdowns of what leaders are prioritizing by organization type and size.