AI and Cyber Insurance: Trends Reshaping the Industry by 2026

According to GlobalData, a prominent data and analytics firm, artificial intelligence (AI), cyber insurance, and the impacts of climate change and natural catastrophes are forecasted to significantly reshape the insurance industry by 2026. Insurers embracing these transformative themes could achieve enhanced operational efficiency, create innovative product offerings, and elevate service levels. In particular, AI is emerging as a pivotal technological trend, currently revolutionizing the industry landscape.

The integration of agentic AI, capable of making decisions from real-time information, has increased its influence across the insurance value chain, enhancing risk management and regulatory compliance. This advancement is expected to further accelerate AI's market influence in the coming years. In 2025, the sector witnessed substantial growth in mergers and acquisitions within the AI segment, with deal values rising by 328% and volumes by 125%. This surge is attributed to the proliferation of generative and agentic AI systems, exemplified by strategic moves such as Munich Re's acquisition of Next Insurance.

The cyber insurance market is also showing robust expansion, with projections indicating growth from $22.2 billion in 2025 to $35.4 billion by 2030. Meanwhile, climate change poses ongoing challenges, as severe weather events increase both in frequency and impact. This trend has significant implications for natural catastrophe insurance, with premiums and claims rising annually. The growing uninsurability of certain areas due to climate risks presents notable concerns for the insurance provider and carrier sectors. For professionals, staying informed of these trends is crucial to navigating market dynamics, ensuring regulatory compliance, and formulating strategic responses to both immediate and future challenges.