The last few years have tested property and casualty claims professionals as they’ve battled climate volatility, social inflation, supply-chain disruption, third-party litigation and increasing nuclear verdicts. As we usher in 2026, the industry will face tough choices about issues like the use of AI in claims processes, evolving customer expectations, risk appetite and data usage.

Below, we share several predictions for what claims professionals can expect in the new year. Scroll down to read insights from across the industry.

Third-party litigation funding

“The biggest challenge going into 2026 will be unpredictability of weather, and Third Party Litigation Funding. Carriers cannot predict the weather, so while most feel they have the right product and pricing in most markets today, that could change if weather related losses mirror 2024 vs. 2025. 2025 was a relatively low CAT year, which was good for carrier profitability. There have also been several bills introduced at the state and federal level related to TPLF. Some would be good for the insurance industry, and some would be bad. That later could extend or worsen a hard market, resulting in higher insurance premiums and fewer options for consumers.” - Lauren Menuey, managing director at Goosehead Insurance

Commercial auto

“The market will face yet another year affected by three cost-driving categories. Rising vehicle operating costs punctuated by qualified-driver shortages and rising repair costs is one. Increased claim severity due to skyrocketing jury verdicts and greater claims frequency caused by inexperienced, unlicensed and uninsured drivers is another. Add in the impact of increased catastrophe events, such as flooding and hail, which have the ability to destroy thousands of vehicles at once.” – Alera Group (“2026 Property & Casualty Market Outlook”)

Automated-auto claims

“Automation and AI are beginning to introduce new liability questions that blur traditional coverage lines. Autonomous driving systems, for instance, have prompted litigation that could spill across both product liability and construction exposures. As AI becomes embedded in decision-making systems and equipment, attribution of fault may increasingly involve both technology and human oversight, raising new questions for claims handling and defense.” – Amwins (“State of the Market 2026 Outlook”)

Leveraging data

“In an age of extremes, insurers can’t treat data as a back-office function, it has to be the frontline of resilience. By unifying data and embedding real-time analytics, carriers can turn uncertainty into foresight. Those that master this shift will set the pace for the industry.” – Peter McMurtrie, partner, insurance at West Monroe (“The Future of Insurance 2026 Outlook”)

Customer experience

“In 2026, customer satisfaction will take center stage as insurers fight to retain clients in the face of rising premiums and growing mistrust. Double-digit rate increases in 2025 sent shockwaves through the industry, leaving many customers frustrated and questioning their loyalty. To win them back, leading carriers will double down on CX investments, focusing on quick issue resolution, proactive communication, personalized policy options, and seamless claims experiences.” – Forrester (“Predictions 2026: Significant Shifts In CX, AI, And Microinsurance Across The Insurance Landscape”)

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