InsurTech Trends 2026: Five Shifts Claims Teams Should Watch
What Counts as an InsurTech Trend?
TLDR; Almost all InsurTech money now chases AI, so make any claims vendor prove it first. InsurTech is just insurance plus technology, and a trend is something that keeps popping up in the money, the regulations, and the daily grind of handling claims. Money’s the easiest one to check. Insurance Journal reported that funding climbed 19.5% in 2025 to $5.08 billion, which was the first yearly increase since 2021. After a few quiet years, that matters.
Quick note on who this is for. Nearly everything written about InsurTech trends is aimed at carriers and investors. We’re talking to the other side of the claim: public adjusters, restoration contractors, and claims firms. And if your CRM has ever felt like it was built for selling cars instead of settling claims, we have a whole post on policy administration software vs claims management software.
Five Trends Worth Your Attention This Year
We narrowed it down to five that come with real numbers and actually change how a claim moves from first call to final check.
1. Everyone Suddenly Does AI
Gallagher Re’s Q2 2026 report found that 99.1% of InsurTech funding went to AI companies. Total funding reached $2.44 billion, the best quarter since 2022. Think about that for a second. Barely anything went anywhere else.
So of course every vendor you talk to has AI in the pitch. Our advice is boring but it works: ask them to run it on one of your own files. Polished demos are easy. Your messy real claim is the true test.
2. Carriers Are Quietly Building Their Own Tools
Risk and Insurance reported that Gallagher Re sees large insurers building more of their AI in house, rather than buying it. In practice that means the desk reviewing your supplement may have software double checking your math before a human opens the file.
Which is fine, as long as you’ve checked it first. The Estimate Analyzer lines up your initial estimate and a supplement, line by line, so you can spot the gaps yourself.
3. Regulators Are Starting to Ask Questions
The NAIC model bulletin on AI came out in December 2023 and tells insurers how they should govern their AI. It isn’t law on its own. States have to adopt it, and trackers had 25 states on board by July 2026, though you should check NAIC’s own map for the current count.
It’s aimed at insurers, not vendors, so your firm probably isn’t directly covered. But carriers are learning to keep records of how decisions get made, and we’d copy that habit. Imagine trying to explain a coverage call six months later with nothing written down. Not fun.
4. Claims Quietly Went Digital
Here’s what J.D. Power found in its 2026 property claims study: 38% of customers reported their loss digitally, 49% sent photos for estimates or payments, and 45% got updates digitally. Average time to final payment came in at 40.7 days, about 3.4 days quicker than the year before.
Your clients have learned to expect tracking links and quick replies from every other company. If a file is scattered across inboxes, shared drives, and somebody’s phone, you can’t give them that. It’s less a software problem than a where did I put that photo problem.
5. Fairness and Trust Matter More Than Speed
This one’s from the same J.D. Power study, and it’s easy to skim past. Customers ranked fairness of the settlement first and trust second. Speed came third.
That doesn’t mean slow is fine. It means a quick payment on a claim people feel was handled badly won’t win anyone over. A well documented file you can explain calmly will.
Hype or Real? Our Quick Read
Some of this deserves your budget and some of it is mostly noise. Here’s where we land on each one.
| Trend | What we saw | Our take | Your move |
| Funding goes to AI | 99.1% of Q2 2026 funding | Real, but noisy | Ask for a demo on your own file |
| Carriers build AI | Big insurers building tools in house | Real, still early | Keep files clean and complete |
| AI oversight | 25 states by July 2026, per trackers | Real, still moving | Write down your decisions |
| Digital claims | 49% sent photos digitally | Very real | Keep everything in one claim record |
| Fairness first | Fairness and trust outrank speed | Very real | Build files you can defend |
These numbers shift every quarter, so double check the sources before you repeat any of them.
How to Size Up a Claims Tool
A good demo can make almost any software look great. So poke at it a little, ours included.
Questions to Ask Before You Sign
- Can it open my real files, such as Xactimate estimates and policy PDFs?
- When the AI flags something, can I see why?
- Who looks over the results before anything goes to a carrier?
- Do you have a SOC 2 Type II report I can read?
- What happens to my open claims while we move over?
Warning Signs
- Speed promises with no named customer or source
- Fuzzy answers about where your data is stored
- A sales CRM with a few claims words stuck on top
Run a Closed Claim Through It
Pick a claim you already closed and ask for a trial on that one. See how long it takes to find the coverage language, compare the estimates, and send out a clean file. The Policy Analyzer should make the search quicker, but the judgment call is still yours.
Three Ways Teams Waste Good Software
It happens all the time: a firm buys a decent tool and barely touches it. It usually comes down to one of these.
Buying Before Mapping
If you can’t say where your claim emails, photos, and estimates live today, no tool will untangle that for you. Block out a week to map it. Honestly, you’ll learn something even if you never buy anything.
Leaving the Team Out
Software nobody opens is just an expensive logo. Pull in your most skeptical adjuster during the trial. If they come around, the rest of the team usually will too. If they don’t, better to hear why before you sign.
Believing the AI Too Quickly
AI is quick, and it’s wrong sometimes. Treat anything it flags as a lead to check. Your name goes on that file, so you should be the one who reads it.
Your First 90 Days
No big overhaul needed. Choose one workflow and start there.
Days 1 to 30: Get Your Bearings
- Track down where emails, photos, and estimates live right now
- Choose one number to watch, like days to file a supplement
- Write down the three tasks that eat most of your week
Days 31 to 60: Try One Tool
- Test it on a closed claim
- Ask about security and migration before signing anything
Days 61 to 90: Make It Stick
- Move one live claim type over
- Look at your number and decide what comes next
FAQs
What are the biggest InsurTech trends in 2026?
AI, no contest. Gallagher Re says 99.1% of Q2 2026 funding went to AI companies. After that you’ve got carriers building their own tools, new rules for AI, digital claims, and more attention on fairness. All of it matters more to a claims team than any flashy gadget does.
How is InsurTech different from fintech?
Fintech is the big umbrella for money tech like banking, lending, and payments. InsurTech is the insurance corner of it. They share some ground, but a claims team needs software that understands policies and estimates, and a payment app won’t.
How is AI used in insurance claims?
Mostly for reading documents, catching missing details, comparing estimates, and sorting claims by how tricky they are. Carriers use it to move faster. You can use it to find gaps before you submit. Somebody should still read the output, so ask any vendor how that step works.
Will AI replace insurance adjusters?
Probably not soon, based on what we’re seeing today. AI handles the repetitive reading well. Judgment, negotiation, and walking a damaged property still take people, and the NAIC bulletin keeps insurers responsible for their decisions.
Does the NAIC AI bulletin apply to public adjusters?
Not directly, in most cases. It’s written for insurers rather than vendors or claims firms. Still, carriers may ask for more paperwork as they build their own oversight. Check NAIC’s adoption map and your own state’s rules, and if you’re unsure, call your state insurance department.
How much InsurTech funding went to AI in 2026?
Per Gallagher Re, 95.2% in Q1 and 99.1% in Q2. The Q2 total was $2.44 billion, the highest since Q2 2022. New quarterly numbers keep landing, so confirm before you quote any of this.
Is InsurTech the future of insurance?
It’s already here. Clients expect digital service and most new funding is going to AI. You probably use a bit of it every day without calling it that. What matters is which tools actually earn your trust.
Bottom Line: Stop Wrestling With Your Claim Files
Trends will keep changing. What doesn’t change is that organized files, tools that show their work, and proof you can hand over make your job easier. Start with one small test this month. Keep what helps, drop what doesn’t, and skip the giant software overhaul.
Curious how it handles your own claim? Book your Adjusted demo today, and see your estimates, policies, and files in one place. Then decide for yourself.
