Commercial insurance is changing – fast.
From the rise of AI-powered underwriting to cyber risk becoming a boardroom priority, the industry is evolving quickly alongside the threats and technologies reshaping the business world.
Here the Rigby Financial team look ahead to the trends that look set to define commercial insurance in 2026, with a quick guide to everything you need to know…
– Cyber security
Over the last 12 months we’ve seen a huge shift in the focus of cyber insurance, with high profile cases, such as M&S, Jaguar Land Rover and the Co-op, showcasing the dangers.
As we head into 2026, cyber threats look set to continue dominating the risk landscape, with the need for robust cover switching from ‘nice-to-have’ to ‘must-have’.
In response, insurers are tightening terms, raising premiums, and demanding proof of strong cybersecurity practices before offering cover. Policies are also evolving to tackle new threats like deepfakes, AI-enhanced phishing and supply chain vulnerabilities.
What it means for you:
Despite attacks becoming more frequent and costly, many companies still lack cyber cover. If you do one thing in 2026, treat cyber insurance as a core part of your risk management – not an afterthought!
– AI and technology
Artificial intelligence is everywhere in insurance right now – driving underwriting, claims processing, risk modelling and customer engagement.
Insurers are investing heavily in AI systems capable of analysing huge amounts of data in real time and even automating routine tasks like claims decisions.
On the plus side, this leads to faster service and more personalised pricing – but it’s not all smooth sailing.
Some insurers are excluding AI-related errors from their cover, wary of unpredictable losses tied to algorithmic mistakes. This means businesses using AI must be even more diligent about risk controls – and policy terms may need to be negotiated carefully.
What it means for you:
Invest in strong data governance and clear documentation of your tech stack if you plan to be covered for AI-linked risks.
– Climate change and extreme weather
Extreme weather conditions are increasing in severity and frequency. Meaning in 2026 we’re likely to see a sharper focus on minimising risk.
Insurers are also incorporating climate data into underwriting, with innovative products like parametric insurance (which automates pay outs when pre-agreed triggers are reached, such as a specific wind speed or rainfall quota) gaining traction for quicker, more transparent payouts.
What it means for you:
Evaluate how climate and environmental risk affects your premiums and, where possible, look to minimise the potential risk.
– Personalised underwriting and data-driven risk profiles
Gone are the days of broad industry buckets and one-size-fits-all pricing.
Insurers in 2026 are using IoT sensors (devices capable of detecting things like light, motion and humidity and translating the information into digital data), telematics data, and even public behavioural signals to create custom risk profiles for individual businesses.
The result? Better pricing for businesses with strong safety programs…and potentially higher costs for those without.
What it means for you:
From commercial vehicles with telematics to workplace sensors that track hazards – data is the new currency in underwriting. For the most competitive quotes, being able to evidence strong risk management and controls will be essential.
– Flexible and ‘on-demand’ cover
The insurance world is adapting to new business models.
On-demand insurance, where cover is purchased for specific periods (for example, just during a contract or event), is becoming more common. And parametric products (mentioned earlier) bringing increased predictability and speed to protection.
What it means for you:
This flexibility will help businesses to control costs and align cover to fit with their specific risk exposure.
– Market dynamics
Economic pressures and evolving risks are reshaping pricing.
While some lines (like cyber) look set to see premium increases, others (such as commercial property) are likely to level out as capacity returns and competition grows.
What it means for you:
Better deals and more competitive pricing, so be sure to search the market.
– Strategic partnerships
Insurance is no longer just an annual renewal event.
Leading insurers and brokers are building ongoing relationships with clients – offering continuous risk insights, real-time monitoring, and collaborative loss control strategies.
This approach helps businesses manage exposures proactively rather than waiting for claims to happen.
What it means for you:
Look for insurance companies or independent brokers – like us – prepared to go the extra mile. Acting as risk partners, not just vendors!
Looking for the best business protection in 2026?
At Rigby Financial, going above and beyond is all part of the service! So why not start the new year with a review of the commercial policies and protection you have in place?
Our experience team are on hand and ready to help. Partner with us and not only will we use our industry insight and expertise to help assess your risk, but as a fully independent broker, we will also search the market to find you the best possible cover at the best possible price.
Contact the team today and let’s get 2026 off to a great start.