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FORECAST 2026: Business Disruptors

Author

Jennifer Rankin
Contributing Editor
LIMRA and LOMA
rankin@loma.org

January 2026

What has the greatest potential to disrupt business-as-usual in the insurance and financial services industry this year? MarketFacts posed this question to C-suite executives — and their answers were as diverse as the risks themselves. Some leaders even pinpointed the single most dangerous threat. Yet even as they identified unique risks, a common theme emerged. While many said they welcome disruption, all agreed on one thing: In today’s business climate, disruption isn’t an exception — it’s the norm.

The New Normal

“Disruption is the new normal,” says Marc Giguère, President & CEO, Munich Re Life US. “Economic swings, artificial intelligence (AI) regulation, cybersecurity, climate risk, mergers and acquisitions (M&A), and changing consumer habits are all in play.”

Expanding on that idea, Matt Berman, President & Chief Financial Officer, Foresters Financial, adds, “Disruption today isn’t defined by any one single thing. It’s the overlap of many factors working at once — technological innovation, geopolitical shifts, climate risk, changing demographics, and evolving customer expectations.”

These perspectives reveal an important truth: disruption isn’t just multifaceted — it’s persistent. Yet some leaders believe the greatest threat may not come from external forces, but from something far more subtle.

The Silent Risk

“In this environment,” Berman says, “complacency is the real disruptor. Organizations that fail to adapt or that innovate without a clear sense of purpose risk losing relevance.”

He elaborates further that Foresters views disruption through a purpose-driven lens. “Our role is to offer stability in times of volatility, community in times that feel divisive, and purpose in times that can feel uncertain. Those principles have guided us for more than a century and a half and continue to anchor us as the world around us changes.”

Adding his perspective, Aaron C. Ball, EVP, Head of the Foundational Business at New York Life, says complacency is not a choice. “Complacency is the biggest risk. That’s why we’re embracing disruption as an opportunity to serve with greater clarity, empathy and impact — combining the best of technology and humanity to help clients plan, protect and prosper.”

Advances in AI, automation, and data are redefining what “good service” means, raising the bar for simplicity, transparency, and trust, according to Ball. “The companies that succeed will be those that can deliver personalization at scale while preserving the human relationships that define our industry.”

Complacency may be the silent threat, but external forces are reshaping the industry just as dramatically.

Tech, Deals and Regulation

Wade Harrison, Vice Chairman & Chief Operating Officer, Protective Life Corporation, believes the most significant potential disruptors will be cybersecurity threats, heightened M&A activity, and evolving regulatory requirements.

“As digital ecosystems expand, the risk of cyberattacks grows,” Harrison says. “Mergers and acquisitions, particularly those driven by private equity, continue to reshape the competitive landscape. Regulatory change is another area with significant potential to disrupt business-as-usual.”

Ron Herrmann, CFP, EVP, Head of Americas, Reinsurance Group of America (RGA), agrees with Harrison that AI and cyberthreats may be the biggest disruptors. “As AI pushes the boundaries for speed, cyber risks are constant threats.

Multiple Fronts of Disruption

Executives emphasize that disruption is coming from many directions — technology, market forces, regulatory shifts, and beyond.

Hermann sees the increasing flow of nontraditional business transactions as another disruptor of business-as-usual. “In the financial transactions space,” he notes, “strong market momentum for asset-intensive transactions continues. The infusion of capital from reinsurers and private equity-backed entities continues to spur activity on the buy-side. Meanwhile, the benefits and positive outcomes experienced by insurers — including increased stock valuations — have generated increased interest on the sell-side. Major transactions still require finding the right partner. How companies navigate this environment will have profound impacts on the industry.”

Jasmine Jirele, President & Chief Executive Officer, Allianz Life Insurance Company of North America, also sees disruption on several fronts, including:

  • The influx of AI technology as a “good enough” option for consumers seeking financial advice
  • Elevated geopolitical and regulatory uncertainty
  • An increasingly volatile and uncertain environment, which is rattling markets
  • The interest rate environment, which is driving uncertainty and reshaping product economics, consumer behavior and investments

Jirele goes on to identify another disruptor:

“Distribution consolidation is driving a need for carriers to think about how to adapt their wholesaling, services and tech processes to meet the needs of multiple new types of distribution partners, including those backed by private equity.”

Broader Perspectives

AI, distribution challenges brought on by M&A and distribution partner aggregation, and consumer behavior in the face of inflation are among the disruptors that Robert M. (Bob) Jurgensmeier, Chief Executive Officer, Ameritas Life Insurance Corp., sees on the horizon.

Paul LaPiana, CFP, Head of Brand, Product & Affiliated Distribution, MassMutual, on the other hand, sees the anticipated surge of financial advisor retirements across the nation during the next decade as a big disruptor.

AI and Regulation

Sharing her perspective, Sarah Mineau, SVP, Financial Services at State Farm, says,

“AI is going to continue to be the story when we talk about disruption. Increased adoption within the life insurance industry will continue to transform how we do business through more efficient underwriting processes, reduced operational costs, and personalized customer service.”

Mineau predicts that moving forward, the industry is likely to see intensified regulatory focus on data governance as the use of AI continues to grow, which could require significant investment in compliance.

Reinforcing this point, Kevin Molloy, Chief Financial Officer, Guardian, explains. “One of the bigger disruptors to financial services will be AI regulation and model accountability. As automation transforms underwriting and claims, companies must ensure transparency, fairness and traceability in their algorithms.”

Molloy believes success will depend on how well organizations balance innovation with trust and agility with governance.

Economic Pressures

Shifting focus to market realities: Economic pressures are forcing consumers to rethink what matters most. This shift could disrupt long-standing business models across the industry.

Mineau elaborates on consumer impact: “We anticipate that the economic hardship customers are experiencing today could have lasting impacts on their ability to purchase life insurance and save for retirement,” says Mineau.

Providing additional context, she says, household wealth in the United States continues to show significant disparities, and one-third of buy-market consumers are concerned about being able to pay their bills, according to Mineau.

She advises of possible long-term consequences: “Life insurance and retirement may be increasingly viewed as optional versus essential. If approximately 50% of the country is considered middle class and those consumers feel they are unable to protect their income or save for retirement, that could have significant societal consequences for generations,” Mineau says.

Financial Literacy

Turning to education, Kamilah Williams-Kemp, EVP & Chief Product Officer, Northwestern Mutual, notes: “One of the biggest disruptors we’re seeing in the industry is both the continued lack of awareness — and disconnect — when it comes to achieving financial independence.”

She reinforces her point with data: “According to LIMRA, more than 100 million Americans are uninsured or underinsured,” says Williams-Kemp. “Life insurance ownership in the U.S. also has declined due to shifting financial priorities, like student loan debt, housing costs, and a growing reliance on limited employer-provided coverage. We are focusing on enhancing consumer understanding and appreciation of things like life insurance and encouraging more individuals to consider it as a vital component of risk protection in their financial planning.”

Conclusion

As one executive said, disruption is the new normal. It is showing up in economic swings, AI, evolving customer expectations, M&A activity — and more. The good news? Insurers aren’t just bracing for change; they’re leaning in and finding ways to thrive in a business environment that’s anything but predictable.

 

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