Digital Insurance contacted insurance professionals to comment on auto insurance trends for 2026.
Experts suggest the industry is continuing to focus on real-time analytics and the adoption of electric vehicles and autonomous cars.
Rajni Kapur, CEO, All Solutions Insurance
The commercial auto insurance sector will continue facing pressures from rising repair costs, driver shortages and increased claim severity. As fleets modernize with telematics and AI-driven safety systems, insurers will shift underwriting from traditional risk models to dynamic, real-time data analytics. We'll see greater segmentation between tech-enabled fleets and legacy operations, creating pricing advantages for proactive risk management. Carriers and agents that invest in predictive data tools and driver safety partnerships will be best positioned to navigate volatility and maintain profitability which in turn would help the insured to keep cost under control and improve driver safety and profitability.
Xiaohui Lu, VP, Global Business Development, LexisNexis Risk Solutions
As electric vehicle (EV) and autonomous vehicle (AV) adoption deepens, the insurance industry faces a pivotal moment to understand and adapt to the distinct risk profiles these vehicles present. From higher repair complexity to evolving driver behaviors, now is the time to refine underwriting and rating models, as well as claims handling strategies before EVs and AVs become the new norm.
Dr. Michel Leonard, economist, Insurance Information Institute
By 2026, the rise of electric and autonomous vehicles will reshape the auto insurance landscape. Insurers are rethinking underwriting and claims strategies by incorporating software performance, vehicle sensors, and cyber risks into coverage models, while developing new processes for complex, technology-driven accidents. As technology continues to advance, collaboration with manufacturers, regulators, and policymakers will be essential to manage emerging exposures and keep premiums aligned with risk.
Gary Hallgren, president of Arity
AI is evolving fast, and what's exciting is how we're starting to see real-world impact - not just the potential. Foundation models are incredibly adaptable, but when you pair them with custom-built models designed for specific challenges, that's where the magic happens. In mobility and public sector applications, this means smarter, faster, and more accurate solutions that don't require massive computing or endless data. We've seen it firsthand with crash detection - our specialized models are outperforming even the most advanced general-purpose ones.
Jeff Wilcoxon, senior strategy and corporate development principal, VIU by HUB
We're seeing interesting technology emerge that is designed to assess and prevent risk. This is particularly true with how telematics data is being used and how property risk is being assessed.
Historically, technologies like telematics were being used to assess driving behavior over time, then reward customers for good behavior. With more longitudinal data and stronger machine learning capabilities, that same data can now be used for vehicle design to prevent accidents or assess risk when the customer purchases a vehicle based on historical behavior. Emerging technologies in the telematics space will empower customers to leverage their data in ways that benefit them, even beyond insurance discounts.
