AI Set to Become Insurers’ Core Infrastructure in 2026

The insurance industry is on the cusp of a major operational overhaul, with AI poised to become its foundational operating system by 2026, according to experts at analytics firm SAS. Once considered a cutting-edge enhancement, AI is now expected to underpin critical functions across the insurance lifecycle, from underwriting to claims settlement, redefining how insurers manage risk, detect fraud, and serve policyholders.

For claims adjusters, this means faster, more consistent decisions supported by ‘agentic AI’ and digital copilots that eliminate reliance on outdated policy administration systems. Simple claims could be resolved within minutes, but this efficiency brings new responsibilities: ensuring transparency, explainability, and fairness in AI-led processes. Adjusters must also be prepared for new fraud tactics using synthetic identities and AI-generated documentation, demanding best-in-class detection tools over one-size-fits-all solutions.

SAS predicts that AI governance, compliance, and ethical safeguards will become central to maintaining customer trust and regulatory adherence. State-level AI regulations in the U.S. will add layers of complexity, requiring claims teams to be attuned to evolving compliance landscapes. Simultaneously, the increasing severity of climate events will push insurers to recalibrate their risk portfolios—impacting premium strategies and claims workloads.

This anticipated AI transformation is not just technical but strategic. Adjusters will need to understand and leverage AI not only as a tool but as a collaborative partner that shapes outcomes across the insurance process. The shift signals a new era where adaptability, digital literacy, and governance awareness will define success for professionals across the claims spectrum.