Amrit Santhirasenan, CEO of hyperexponential, said that artificial intelligence is moving from hype to practical application, and by 2026, the winners will be insurance companies that invest wisely in technology and modernize their infrastructure to unlock value.
Santhirasenan noted that AI offers insurers a real opportunity to achieve a win-win for efficiency and profitability, driving “in-production” results faster than any technology in history. He added that recent industry survey results suggest transformation is already underway, but the real challenge is how insurers can effectively connect data-driven underwriting insights to operational execution.
“Looking ahead to 2026, the question is not whether insurers invest in technology, but how wisely they invest,” Santhirasenan said. “Pricing and underwriting are now considered key engines for decision-making, and the winners will be those who modernize their infrastructure to unlock value.”
“AI is moving from hype to real-world applications, embedded into workflows to improve the quality and depth of insights, speed and confidence.”
He explained that the fear of being replaced by AI is fading as actuaries and underwriters increasingly view AI as a collaborator that augments human expertise rather than replacing it.
“Upskilling and AI proficiency are becoming critical to ensure talent can focus on judgment, innovation and experimentation on new data sets,” he added.
Santhirasenan continued: “Efficiency improvements will still be important, but they are no longer a differentiator. The true measure of success will be portfolio performance and the ability to achieve profitability in a soft and competitive market. This will require not only investing in automation, but also equipping teams with the skills and tools to make smarter, data-driven decisions.”
Looking ahead to 2026, he expects the insurtech ecosystem to expand further, simplifying data exchange and reducing friction across the market.
“Intelligent automation will ease the burden of manual tasks, while AI-driven platforms will connect underwriting workflows end-to-end,” said Santhirasenan. “This cultural shift toward collaboration between human expertise and cutting-edge tools will drive the insurance industry forward. The tools, talent and ambition are already in place. The next phase of transformation will belong to those who connect them, moving beyond winning business at all costs to achieving meaningful, measurable profitability advantage.”
