Insurers see artificial intelligence as critical to the industry’s future, yet full integration is not yet widespread. This is among the findings of AutoRek’s 2026 Insurance Report. The study, based on 250 interviews with UK and US insurance managers, found that 82% believe AI will dominate in the future, but only 14% have operationalised it. Meanwhile, 44% face settlement periods exceeding 60 days, and 14% of operational budgets are spent correcting errors from manual processes.

High-volume firms processing more than 10 million transactions annually average 59-day settlements, compared with 52 days for smaller peers. Spreadsheet reliance, fragmented data and legacy systems were cited as primary delays, with transaction volumes set to rise by 28.7% over two years.

AI adoption is uneven. Six per cent report no usage, while integration challenges, fragmented data and lack of in-house expertise are holding others back. Half of insurers now prioritise AI, 42% focus on automating back- and middle-office functions, and 51% cite regulatory requirements as a driver for modernisation.

“Insurers know where the industry is heading. The challenge is that most haven’t translated that awareness into operational change,” said Tony Shek, insurance sector lead at AutoRek. "Settlement cycles are lengthening, data environments are getting more complex, and the firms that have already embedded automation into their financial operations are pulling ahead."

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