Insurance industry technology spending is expected to increase by $173 billion in 2026, Forrester reports, which is up 7.8% relative to 2025. Due to this increase in tech investment, the insurance industry is likely to account for 6% of total tech spending in the U.S. this year.
To keep up with rapidly evolving insurtech, Forrester recommends that in 2026, insurance tech and business leaders should do the following:
- Prioritize AI capabilities that fundamentally improve the company's operations, rather than being drawn in by flashy AI pilots;
- Properly train employees to work alongside AI; and
- Double down on their focus on the insurance end-customer experience.
Recently, WalletHub released its list of the most and least innovative states in the U.S. To determine the rankings, it evaluated all 50 states and Washington, D.C. using 25 key indicators of "innovation friendliness," including the share of STEM professionals, R&D spending per capita, the concentration of tech companies, internet speed, tax-friendliness, net migration and entrepreneurial activity.
"The most innovative states are especially attractive to people who have majored in science, technology, engineering and math, or STEM, as they offer abundant career opportunities and investment dollars, both for jobs at existing companies and for startups. These states also instill young students with the skills they need to succeed in the current workforce, skills which are useful whether or not they pursue a STEM career," said Chip Lupo, WalletHub analyst.
In the slideshow above, we'll count down the states that made WalletHub's top ten for innovation.
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