As the reinsurance market faces increased pressure in 2026, Capgemini’s Luca Russignan says the gap between performers and mere experimenters is widening, as the double-edged nature of AI rewards true trailblazers who are redesigning processes around the technology rather than simply adopting it.
In a New Year’s discussion with Reinsurance News, Russignan, global head of the Capgemini Financial Services Institute, outlines the key challenges and opportunities shaping the reinsurance market, shares his outlook for 2026 and discusses how the industry is preparing for the next stage of the cycle.
“The reinsurance/insurance market will face compounding pressures in 2026, but with pressure comes clarity. Risk models are changing, technology capabilities are maturing, and the gap between performers and experimenters is widening,” Russignan said.
Risks are becoming increasingly concentrated, and not just on the physical side, the executive said.
Citing his company’s World Property and Casualty Insurance Report 2025, Russignan noted that by 2050, nearly 70% of the world’s population is expected to live in urban centers, where population, wealth and infrastructure will be concentrated.
“This amplifies the risk of catastrophic events, making the risk pool denser and more volatile. But few are talking about the second concentration of risk: digital infrastructure. There are a handful of generative AI providers today powering billions of business processes and creating a new systemic risk profile we have not seen before,” Russignan observed.
He continued: “This brings us to the double-edged sword of AI. Our data shows that 70% of insurance companies are planning large-scale AI agent deployment, starting with customer service and continuing with underwriting and claims.
“But here’s the catch: Most AI pilots remain pilots. They remain siled, creating technical debt and inconsistent operating models. Trailblazers are not just implementing technology, but redesigning processes. You can’t bolt AI to legacy processes and expect enterprise-wide transformation.
“In a world of uncertainty and rapid change, the real question is not whether insurers should adapt, but how they adapt boldly and effectively to unlock growth and stay ahead of the curve.”
When talking about the outlook for the year ahead and the industry’s view on the next phase of the market cycle, Russignan said that while the competitive landscape is being fundamentally reshaped, there are good reasons to remain optimistic.
“Technology has arrived: 88% of insurance companies have adopted hybrid cloud to modernize their legacy IT infrastructure. The question in 2026 is not whether transformation is possible, but whether insurance companies will combine their technology investments with the organizational redesign that makes it work,” Russignan explained.
He added: “Let me give you a successful example: a global specialty insurance company launched an AI-driven underwriting model built using Google Cloud to accelerate underwriting of specialty risks such as disruption and terrorism.
“The result? By mid-2024, the platform can process 15-20 proposals per day with 98% accuracy, resulting in measurable efficiency gains and rapid return on investment.
“But the lesson is: Success comes from redesigning the entire workflow—how the business operates—not just integrating technology. This model, which combines generative AI with in-house machine learning and geospatial analytics, is now being scaled up to form the basis of enterprise-wide AI underwriting strategies.”
According to Russignan, the industry is collectively realizing that technology alone won’t work and that redesigning processes and culture is the real test.
He continued, “Will everyone move at the same pace? No – the gap between the leaders and the laggards will widen – but the laggards now have a road map.
“Take distribution and engagement as an example. Agents remain the human face of the insurance industry, but their effectiveness is often hampered by siled systems and manual processes.
“Capgemini’s World Life Insurance Report 2026 shows that 67% of individuals under 40 want digital access and dedicated advisor support, but only 16% of insurers currently offer this experience.
“This is not a technology gap, but a business model gap. Insurers that design agent roles around AI tools, rather than simply digitizing existing processes, will see meaningful interactions with younger generations.”
Russignan noted that these capabilities can reduce onboarding friction, enable more targeted cross-sells and upsells, and enhance customer loyalty.
For operators, this means higher conversion rates and deeper customer relationships. At the same time, he said, for agents, it means moving away from administrative tasks and toward consulting excellence, meeting clients with greater speed and confidence.
Russignan concluded in the interview: “My prediction for 2026 is this: Insurers will split into two camps. One camp will invest heavily in cloud and AI but still face operational friction as they digitize legacy processes rather than reimagine them. The other camp will work harder to redesign how humans and technology work together, and they will be 18 months ahead.”
With over 15 years’ experience in top consultancies and insurance companies, Luca Russignan is able to identify emerging opportunities and risks in Capgemini’s banking and insurance sectors, translating complex market and regulatory trends into clear, actionable insights for senior executives in the UK, US, Italy and Asia Pacific.
