UK & Isle of Man General Insurance Market Outlook – Summer 2026
This article reflects the opinion and professional insight of Ann Zachorecki, based on over 25 years of experience in the insurance industry.
The insurance market has continued to shift over the past 12 months. While 2025 was largely shaped by increased capacity, reducing premiums and claims costs, 2026 is proving to be a year focused on customer outcomes, emerging risks and technological advancement. [1][2][3]
For businesses and individuals alike, understanding these developments is key to ensuring insurance programmes remain fit for purpose in an increasingly complex risk environment.
Customer outcomes and fair treatment remain a regulatory priority
While the FCA’s Consumer Duty does not apply directly to Isle of Man regulated insurance intermediaries, the Isle of Man Financial Services Authority (IOMFSA) continues to place significant emphasis on fair customer outcomes, robust governance, transparency and customer protection through its conduct of business and corporate governance frameworks (Sources: IOMFSA [1], FCA [2]).
Across the insurance sector, we are seeing:
- Increased focus on customer service standards and effective claims handling processes.
- Greater scrutiny of product distribution arrangements to ensure products remain appropriate for their intended target market.
- Continued emphasis on providing customers with clear, accurate and timely information before, during and after the point of sale.
- Strong expectations around governance, staff competence, complaint handling and the fair treatment of customers throughout the insurance lifecycle.[1][2]
For clients, this should result in clearer communications, improved service standards, greater transparency, and a stronger focus on delivering fair and appropriate insurance solutions.
Cyber risks continue to grow
Cyber risk continues to move up the agenda for organisations of all sizes (Sources: ABI [3], IUA [5], EY [7]).
Businesses are increasingly seeking protection against:
- Ransomware attacks
- Data breaches
- Social engineering and fraud
- Business interruption caused by cyber incidents
As digital dependency grows, cyber insurance is becoming less of an optional purchase and more of a core requirement of a business risk management strategy. Insurers are also providing more proactive support through cyber risk assessments, employee training, and incident response services (Sources: ABI [3], IUA [5]).
Artificial Intelligence (AI) is changing the way insurance works
AI is no longer something the industry is experimenting with. It is becoming part of day-to-day operations (Sources: IUA [5], EY [7], PwC [8]).
We’re seeing increased use of:
- AI-assisted underwriting
- Predictive analytics for pricing and risk assessment
- Claims automation and fraud detection
- Enhanced customer service tools
At the same time, regulators are keen to ensure innovation does not come at the expense of fairness, transparency, or customer trust. Responsible use of AI is becoming just as important as adoption itself (Sources: FCA [2], PwC [8]).
Emerging risks are creating new insurance challenges
Many of today’s business risks look very different from those faced a decade ago. Insurers and brokers are increasingly discussing (Sources: IUA [5], EY [7], PwC [8]):
- AI liability
- Environmental and pollution exposures
- Risks associated with intangible assets and intellectual property
- Evolving legal and regulatory liabilities
As these risks develop, businesses should regularly review whether traditional insurance arrangements still provide adequate protection. All the above should be key talking points throughout the policy period, and especially at renewal (Sources: IUA [5], EY [7]).
Claims experience is becoming a differentiator
While cost remains a key consideration, service and claims support are increasingly influencing purchasing decisions. There is a growing focus on (Sources: ABI [3], BIBA [6], PwC [8]):
- Faster claims settlement
- Better communication and support throughout the claims journey
- Greater oversight of outsourced claims providers
- The importance of a long-lasting relationship with key underwriters
The true value of insurance is only realised when a claim occurs. Therefore, making the quality of claims support a critical factor when selecting an insurer (Sources: ABI [3], BIBA [6]).
Climate resilience remains high on the agenda
Extreme weather events continue to impact both insurers and policyholders (Sources: ABI [3], IUA [5], EY [7]).
Key trends include:
- Greater investment in flood and catastrophe modelling
- Continued focus on climate risk governance and resilience planning
- More sophisticated underwriting for properties exposed to flood and storm risks
- Increased emphasis on preventative risk management measures
For businesses and homeowners, proactive risk management is becoming an increasingly important part of maintaining affordable and appropriate insurance cover (Sources: ABI [3], IUA [5], EY [7]).
The market remains resilient
Despite economic uncertainty, geopolitical tensions and evolving risks, the UK insurance market remains strong. Lloyd’s reported gross written premiums of £57.9 billion and profit before tax of £10.6 billion for 2025, demonstrating the continued strength of the London Market [4].
This resilience provides confidence that the market remains well-positioned to respond to both traditional risks and new emerging challenges (Sources: Lloyd’s [4], IUA [5]).
Final Thoughts
The conversation in 2026 is no longer solely about premium and claims inflation. Instead, the focus has moved towards delivering better customer outcomes, managing emerging risks and making the most of technological innovation (Sources: FCA [2], ABI [3], IUA [5], EY [7]).
This is a timely reminder to review insurance arrangements regularly to ensure cover remains aligned to evolving risks and seek professional advice when navigating an increasingly complex landscape.
At MAC Insurance Brokers, our role is to help clients stay ahead of these changes, identify exposures and ensure they have the right protection in place when they need it most.
Want to talk it through?
Whether you’re concerned about premiums, regulatory changes, or how to future-proof your insurance strategy, we’re here to help. Please contact our team.
Sources
- Isle of Man Financial Services Authority (IOMFSA) – Regulatory Updates and Guidance. [legislation.gov.im] Legislation & Guidance
- Financial Conduct Authority (FCA) – Insurance Regulatory Priorities 2026 and Premium Finance Market Study [debevoise.com], [fca.org.uk]
- Association of British Insurers (ABI) – General Insurance Market Updates and Industry Commentary [abi.org.uk], [abi.org.uk]
- Lloyd’s of London – Full Year Results 2025 [lloyds.com]
- International Underwriting Association (IUA) – London Market Outlook and Emerging Risk Insights [insuranceb…essmag.com]
- British Insurance Brokers’ Association (BIBA) – Market and Consumer Guidance
- EY – UK Insurance Market Trends 2026 [ifamagazine.com]
- PwC UK – Insurance Regulatory and Claims Market Updates [pwc.co.uk]
