Sollers says insurers to speed cloud adoption in 2026

Japan and parts of Europe are taking a more cautious approach in terms of adoption.

Sollers Consulting expects insurers to accelerate their shift to cloud technology in 2026 as firms look for efficiency and scale amidst rising commercial pressures. 

The findings are outlined in the Sollers Predictions Report 2026, which draws from proprietary data and external sources covering 123 insurers across ten markets.

The report says cloud systems are becoming standard in the industry as insurers seek more flexible operations and as IT providers introduce new tools. 

Sollers notes that markets such as Australia, New Zealand, and the UK are moving fastest, whilst Japan and parts of Europe are taking a more cautious approach.

Sollers President Michal Trochimczuk said insurers recognise the security and flexibility of cloud infrastructure but are still learning to maximise its economic benefits.

The report also forecasts increased consolidation in 2026. 

M&A activity in the UK, German-speaking markets, the Nordics, Australia, and Japan is expected to extend into Central and Eastern Europe. Insurers are likely to focus on simplification and automation to gain scale.

Sollers expects health insurance to be the most active business segment next year. 

The report also warns of lower profitability due to weaker investment income and continued regulatory scrutiny in claims and pricing. 

It says insurers will take a more cautious approach to digitalisation, widening the technology gap between market players. AI is expected to be a major driver of further cloud adoption.

With insurance rates and interest rates under pressure, the report anticipates higher technology spending. 

System integration, process automation, and self-service tools will gain traction, particularly in retail lines. 

Commercial insurers are expected to adopt more underwriting workbenches to support automation.

According to Trochimczuk, AI will help insurers improve underwriting by making processes more efficient and accurate. 

The report adds that slower economic growth and high claims inflation will push insurers to rely more heavily on technology to protect margins.