Catastrophes, resilience, automation, digital transformation, personalized claims experiences, evolving talent strategies, and operational flexibility—these are just some of the powerful forces already shaping this still-young year. Together, they’re redefining how the claims industry works and setting the stage for changes that demand attention.
A new report from Crawford & Company spotlights the key forces set to reshape the insurance claims industry through the rest of 2026. In it, the firm lays out nine bold predictions that reveal where claims are headed—and why the changes coming next could redefine how insurers handle the challenges ahead.
The growing influence of AI in claims handling takes center stage in one of the report’s key predictions—signaling a shift that could fundamentally change how insurers assess, process, and resolve claims in the months ahead.
“As AI drives more claims automation, we will see more straight-through processing of low complexity claims in 2026,” said report co-author Joel Raedeke, senior vice president, U.S. technology for Crawford.
Crawford & Company predicts that insurers, regulators, and policyholders will take a far more proactive stance as natural disasters grow larger and more destructive. Events like the Los Angeles wildfires of January 2025 have already triggered sweeping changes—prompting insurers to push for higher rates or pull back from writing new policies in California, while regulators scramble to rethink the rules that govern the market.
The report’s authors expect to see broader industry support for resilience, along with stronger efforts to educate homeowners and contractors about how to better prepare for disasters. They also anticipate new funding streams and creative financing options designed to strengthen homes before the next catastrophe strikes. That could include insurance endorsements that cover part of the cost of installing more resilient roofing materials, loans or grants to help homeowners pay for upgrades, and expanded access to private financing to make those improvements more attainable.
The report also points to the rise of new approaches to insurance coverage. As AI becomes more powerful, it is expected to reshape both policy pricing and claims processing. With the ability to store, compile, and analyze vast amounts of data, insurers will be able to deliver far greater customization across the entire policy lifecycle—tailoring coverage, pricing, and service in ways that were nearly impossible just a few years ago.
Innovation and rapid change run through several of the report’s key predictions. In 2026, the industry is expected to face a familiar but intensifying challenge: the cost of medical care and indemnity claims will keep climbing—even as the overall number of claims continues to decline.
“Expect to see a healthy mix of captives and traditional insurance products bubble to the surface to address the resulting medical and indemnity market needs,” the report added.
Here are several other key predictions from Crawford & Company that could shape how the claims industry evolves in the months ahead:
- “New regulation will drive the claims industry to re-examine how speed and accuracy are balanced in post-disaster recovery.”
- “Data-driven transparency into adjuster performance will become table stakes for TPAs.”
- “An uptick in cyber regulation will drive more activity and associated expenses from panel providers.”
- “A shift in the market cycle will put pressure on captives in 2026, possibly bringing organizations back to the traditional market.”
- “2026 will test the industry’s agility in preparing for what can’t yet be predicted.”
Photo: Generated by AI
