Life, homeowners, and auto insurance are all losing growth momentum as affordability strains demand and generational shifts reshape ownership. With fewer new buyers, insurers are battling for retention and share in a market that’s no longer expanding.

In 2026, personal lines insurers will face a market reshaped by changing demand, risk, and consumer expectations. Growth hinges on smarter digital engagement, genAI transformation, richer data, real-time risk insights, and emerging coverage areas.

The number of US life insurance policyholders is set to decline in the next few years. Understanding roadblocks to coverage in untapped and growing markets can help insurers right the ship.

Embedded channels will make up a large chunk of life insurance transactions within the next five years. Insurers that form the right partnerships today can reach coveted younger demographics and grow their customer bases.

While only a small portion of the market today, embedded channels will make up more than 30% of all insurance transactions by 2028, per EY. Insurers who don’t figure out now where they fit into the ecosystem—and how to implement the necessary technology—may lose digital-first customers and younger demographics to competitors who do.

Thirty percent of all insurance transactions will occur in embedded channels within the next five years. Insurers who don’t act now will miss out on reaching new customers—and risk losing current ones to innovative competitors offering embedded policies.

We dig into the trends that will power the insurance industry through an economic downturn.

IT and technology spending will register anemic mid-single-digit growth throughout our forecast period. Property and casualty tech leaders must maximize spending to support their organizations’ bottom line in a time of extraordinary pressures on profitability.

Today’s insurtech product leaders need to drive profitability with products and journeys that boost retention, simplify acquisition, and promote organic growth. And they must do so at a time when their organizations are cutting costs.

A difficult market environment is reshaping insurers’ priorities. Insurers that focus on improving customer lifetime value and meeting evolving consumer expectations can turn challenges into opportunities.

Rapidly shifting customer expectations, disruption from new entrants, and new risks and coverage needs threaten to turn the property and casualty (P&C) insurance industry on its head. But insurers that digitally transform can come out on top.

Sure raised $100M to help financial institutions and fintechs bolster their offerings with insurance products, and there are two reasons we think it will pick up steam.

The insurtech, which matches insurers so they can offer additional products, raised $180M as it tackles its next growth opportunity—embedded insurance.