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Strategic, tactical and competitive imperatives for 2026-27

The priorities for senior leaders: tech and talent, customers and growth, and smart capital strategies

Senior executives have several levers to adjust in leading multi-dimensional change. Strategic clarity, when supported by operational flexibility and agile decision-making, holds the key to seizing opportunities in shifting markets. Sophisticated data management, process automation, and AI-enabled tools underpin operational excellence, no matter the function or line of business.

The people element is just as important. Engaged talent, empowering cultures, and confident leadership are essential elements of long-term success, particularly in light of ongoing uncertainty. Customer centricity — easy to overlook in disruptive times — should ground both long-term strategic planning and everyday resource allocation.

^{Sharpen capital, product, and growth strategies}

Senior leaders can make an ally of uncertainty by identifying the right growth opportunities to pursue despite persistent market instability.

Determine where you can effectively compete and achieve sustainable growth, carefully balancing top- and bottom-line factors across different time horizons
Assess the evolving risk landscape (e.g., tariff exposure, supply chain vulnerabilities, varying regulatory requirements), new competitive realities, and tax implications when allocating capital
Embrace discipline in steering the portfolio, clearly articulating the rationale for divestments and exits from low-margin and high-volatility lines
Strengthen scenario modeling and stress testing capabilities to envision future developments and prepare for future volatility

Redesign reinsurance and ALM programs to balance retention, collateralization, and capital efficiency
Identify different capital providers — including PE and traditional asset managers — for creative collaborations and mutually beneficial investments
Ensure that senior executives overseeing data, AI, and talent and workforce are engaged with the board and C-suite for strategic alignment and rigorous execution of change programs

^{Orient everything around customers}

Because customer needs are changing across segments, companies will need to deliver new value through new channels, with innovative offerings and satisfying experiences keyed to both big-picture goals (e.g., financial security) and specific needs (e.g., protections for new purchases). Satisfying customers by delivering what they need remains the most likely path to long-term growth and sustainable profitability. Companies that consistently demonstrate customer centricity will be able to differentiate on trust, which is fast becoming a strategically vital and high-value asset.

Use customer insights as a guide in both big bets (e.g., AI deployments, outsourcing) and small enhancements (e.g., new product features, personalized experiences)
Identify where AI can streamline and enhance the customer journey and feature customer-related metrics (e.g., higher satisfaction, increased share of wallet) in the business case for tech transformation
Instill value for money, fairness, and consumer protections within the value proposition and every customer interaction to build trust and meet regulatory requirements
Design products for different life stages and modularize them for easy adjustment over time (e.g., life and savings products that flex for accumulation and decumulation phases)

Consider options for underserved segments (e.g., entry-level life and annuity products to attract younger consumers making DIY investments)
Collaborate and co-create flexible solutions with corporate clients (e.g., prevention and analytical services for captives; group insurance and employee benefits designed for customization and individual choice)
Refactor marketing, sales, and service processes, with strategies to engage via AI chatbots
Expand embedded products and other offerings that engage younger consumers who don’t use traditional channels

^{Recalibrate operations for a high-cost, low-growth world}

Cost optimization programs often balance short-term pain with long-term gain, provided firms avoid degrading the customer experience and limiting future innovation via indiscriminate cuts.

Set the vision of a lean, flexible organization as a platform for future growth and innovation based on both operational excellence and strategic agility
Evaluate the resourcing model to maximize efficiency and to foster innovation via access to specialty skills and specific tech solutions
Link cost reduction targets to specific transformation and innovation investments

Consider different options (e.g., centers of excellence, multi-disciplinary teams, innovation hubs, partnerships, managed services) in refining the operating model
Develop strategic partnerships and participate in platforms that drive value cost-efficiently

^{Deploy advanced technology to create value, period}

After 25 years of digital transformation in insurance, it’s time to look over the horizon and envision the next phase. Beyond digitizing current operations, leaders can rethink the fundamentals of the business and explore new ways to create and deliver value.

Build a business case for AI that extends beyond cost and productivity metrics to identify areas where AI can boost competitiveness and promote innovation
Define the sourcing options — buying off-the-shelf packages, building custom solutions, partnering for specific capabilities — and proactively modify the mix to ensure flexibility in the short and long term
Monitor the landscape of InsurTechs and startups to identify candidates for collaboration in line with specific business and IT needs
Invest in foundational systems, data management platforms, and governance structures to drive the development of scalable AI capabilities

Focus on data quality, lineage, taxonomy, and governance to remove the main barriers to value creation with AI
Prioritize AI use cases that elevate the human element of the business and help people create value, serve customers, and do their jobs more effectively
Prepare to pivot — strategically, operationally, and technologically — as AI advances (e.g., neurosymbolic applications) and other disruptive tech (e.g., quantum computing) becomes more common

^{Embrace continuous transformation, especially relative to talent, workforce, and culture}

The ability to drive change repeatably may be the primary attribute of effective senior-level leaders in insurance today. Strong leadership demands vision and discipline but also a human touch. Integrating the people agenda at every step of transformation delivers benefits sooner, builds capability faster, and sustains new ways of working for longer.

Define and clearly communicate the what, why, and how of transformation programs
Establish clear investment targets and milestones for ramping up capabilities
Sequence transformation in self-funding phases, delivering measurable value at each stage
Develop a change management capability to orchestrate different value streams and evolve cultural norms in line with new technology and new ways of working
Openly acknowledge the difficulty of change in turbulent times, explicitly addressing the fear of job cuts relative to AI deployments

Promote critical thinking, skill development, and creative collaboration via training and new incentives at every level of the organization
Be adaptive in transformation planning, using continuous feedback to course-correct, reset goals, and refine priorities over time
Emphasize the need for and value of continuous learning and cross-functional collaboration