Digital Insurance contacted insurance professionals to comment on life insurance trends for 2026.
Experts suggest the life insurance industry is evolving as the industry deploys tech and data analytics.
Responses have been lightly edited for clarity.
Brian Poppe, senior vice president of income and wealth planning at Mutual of Omaha
As we look ahead to 2026, the life insurance industry stands at a crossroads as it balances innovation in underwriting and product design with a growing need for consumer transparency. While the fundamentals of insurance protection remain the same, how we deliver it is changing rapidly.
Moving forward, more companies will expand their accelerated underwriting (AUW) programs to higher face amounts, building on the momentum over the last few years. AUW was once limited to smaller policies, but we're now seeing some carriers approve face amounts as high as $5 million without the need for traditional medical exams. This change reflects advances in data-driven risk assessment as well as consumer demand for faster, seamless experiences. As more insurers adopt AUW at scale, we can expect wider acceptance and additional continued refinements in automation.
To ensure growth, insurers must go beyond simple product education and create emotional connections that demonstrate the value of protection. Similarly, established carriers with strong distribution networks, trusted brands like Mutual of Omaha, and digital strategies will remain well positioned to navigate this environment.
In short, 2026 will be a year of progress, introspection, and accountability to move life insurance forward.
Michel Léonard, PhD, CBE, chief economist and data scientist, Insurance Information Institute
Life insurance is expected to evolve as insurers leverage technology and data analytics to better assess risk and personalize coverage, with significant changes shaping the industry by 2026.
Digital platforms and AI-driven underwriting will streamline the application process, making policies faster and more accessible while improving accuracy in risk pricing. Insurers will also face challenges from rising longevity and changing health trends requiring innovative product designs and flexible solutions.
At the same time, increased focus on customer engagement and wellness programs will allow the industry to help policyholders manage health risks and enhance long-term value.
Lynn Leritz, vice president, Life Insurance, Northwestern Mutual
Insurtech continues to create opportunities to improve efficiency and deepen client trust. With innovations like accelerated underwriting, we can significantly reduce the time it takes to process applications, enabling faster policy issuance.
We're also seeing advances in digital platforms that help clients plan for a variety of scenarios and make sound comprehensive financial planning decisions based on data and the recommendations of a trusted advisor.
Hector Martinez, head of John Hancock Insurance
As we look toward 2026, the integration of AI and Gen AI technologies will transform the insurance landscape. What today are mostly use cases or pilot projects will soon evolve into fully operational applications, particularly in areas like underwriting, advisor enablement, and enhancing the policy ownership experience. Companies at the forefront of this transformation will set new standards for efficiency and customer satisfaction.
Behavior-driven insurance models and personalization will continue to accelerate, exemplified by our John Hancock Vitality Program, which celebrated its 10-year anniversary in 2025. These innovations and solutions will empower individuals with education, resources, incentives and rewards that help them lead longer, healthier, better lives, creating significant value over their lifetime. This shift will not only enhance client relationships but also improve cross-selling opportunities and generate more referrals, ultimately strengthening our industry and business.
In October 2025, we released the Longevity Preparedness Index (LPI), which revealed most Americans are underprepared for longer lifespans across eight critical domains: social connection, daily activities, care, home, community, life transitions, health and finance. U.S. adults on average scored a 60 out of 100 overall, and there were clear deficiencies in care, housing, finance, and health.
We envision that this increased focus on longevity we have been championing for over a decade will become central to the industry in 2026 – putting the "life" back in life insurance and emphasizing the lifetime benefits of life insurance ownership. The LPI highlighted care as a longevity planning blind spot. Few adults know who will care for them as they age or how they will afford that care, and many haven't discussed their wishes with family or loved ones (respondents scored just a 42 in Care preparedness, the lowest score of all eight domains). This presents an opportunity to meet consumers where they are with offerings that bridge these gaps in preparedness.
Justin Baker, AVP, life insurance, LexisNexis Risk Solutions
The future of life insurance underwriting will be built around two key capabilities: leveraging structured insights from digital health data and creating new risk insights by combining medical & behavioral data for a full view of the risk.
By tapping into digital health data and behavioral signals, carriers can evolve to a more dynamic, data-driven view of the applicant, one that balances speed, precision, and protection for both insurer and insured in the years ahead. With this holistic, data-driven approach, carriers can make more precise, refined underwriting decisions while simplifying the insurance workflow.
David Sterner, SVP research & development at ACORD
In 2026, we expect to see declining interest rates pressure overall sales growth, as well as drive a shift from fixed products to variable products.
Insurers with large legacy books will continue to seek divestiture through large reinsurance and private equity deals.
Marc-Andre Giguere, president and CEO of Munich Re Life US
Tech-enabled underwriting is helping to address the insurability gap.
There's still a significant gap in life insurance coverage, with many Americans feeling underinsured. Tech-enabled underwriting, including the integration of electronic health records (EHRs) and AI, is helping to make coverage more accessible, particularly for underserved markets.
By streamlining risk assessment and simplifying products, carriers can reach more consumers without sacrificing quality or accuracy in underwriting.
Tim Morant, chief risk assessment officer, Munich Re Life U.S.
Underwriting innovation will be fueled by wearables and longitudinal data. Activity data from wearable devices is emerging as the latest tool for risk segmentation in life underwriting. These novel attributes offer predictive value beyond traditional vitals and could help refine pricing and expand insurability. In 2026, forward-thinking insurers will increasingly use these tools in risk assessment. The challenge will be to find the optimal use cases and the best partners.
The rise of large language models will unlock unstructured data. Large Language Models (LLMs) are poised to transform how insurers handle unstructured data. In life underwriting, this includes APSs and financial records. In 2026, expect to see more companies using LLMs to support underwriting teams, flag inconsistencies, and enable faster decision-making. This will reduce manual review time and improve consistency across cases. Carriers must invest in governance frameworks to ensure model transparency, accuracy, and fairness in decisioning.
David Chavern, president & CEO, American Council of Life Insurers (ACLI)
We're seeing a huge wave of people who've spent their lives working and saving now getting ready to retire. So, in 2026 and beyond, we will see more and more people looking for the kind of long-term guarantees that only life insurers offer. Our job at ACLI will be to make certain that public policy safeguards and expands access to the tools and options they need to build greater financial security and peace of mind."
