James Nicholson, Zurich UK chief claims officer says the year ahead may well see the challenges of increased technology use become more evident for insurers and their clients.

The increased use of technology in all aspects of our lives continues to bring great benefits, but 2026 could be the year when we start to see more of the challenges emerge as businesses adapt to new ways of working. It’s a mistake to think about technology in isolation though; our experience shows it’s often the attitudes and expertise of the people using it which make the difference when it comes to the level of risk involved.

Let’s take artificial intelligence. AI is now a strategic necessity across many industries. Firms risk falling behind competitors if they don’t take advantage of the efficiencies that AI can bring, but that needs to be coupled with the appropriate levels of understanding and governance to ensure that the tool doesn’t become a potential liability. You can’t underestimate the importance of a human in the loop for every process.

Given the widespread and rapid adoption of AI it’s perhaps surprising we haven’t yet seen a meaningful level of claims relating to firms failing to use the technology with the necessary care and attention. It’s likely that will change over the next 12 months, and it may also prompt conversations about where responsibility for AI governance sits within a company’s structure. It’s feasible that claims could be made against Directors & Officers policies, if it’s felt directors should be accountable for how AI is implemented and, more importantly, overseen.

There are particular risks for any profession which charges for the expertise of its people, and we’re already aware of claims being brought against firms of solicitors in this context. Firms need to ensure that AI use falls on the right side of the divide, helping speed up the management of large documents or the processing of data for example. The risks escalate if AI becomes part of the process for formulating positions, strategy or advice which are the responsibility of qualified individuals. Employees need to have a clear understanding of the limitations of the technology they are utilising, clear guidance on its use and to ensure transparency with customers, otherwise they may leave themselves open to allegations of negligence.

We should also expect the increased use of AI against firms, for example by fraudsters. AI facilitates the rapid processing of data and can help mimic writing styles for a more convincing phishing attack, even producing deep fakes of key individuals. It enables attackers to launch thousands of personalised calls or emails simultaneously, increasing success rates dramatically. In the face of that onslaught, businesses will need to employ their own agile approaches to ensure they stay ahead and protect themselves effectively from the prospect of a catastrophic breach and all of the losses that can entail.

The vulnerabilities of any organisation to a cyber attack will also come under more scrutiny in the coming months. Given the high-profile incidents which happened in 2025, no business can claim to be unaware of the risks and so stakeholders will be looking to business leaders for a suitably robust response. Cyber resilience is climbing boardroom agendas, and rightly so given cases of litigation in Ireland and in the US. We anticipate a rise in similar actions in other jurisdictions, including the UK.

The insurance industry is embracing technology and AI in terms of the efficiencies it can bring to processes, speeding up complex paperwork and summarising important data for the benefit of customers as well as insurers. But as we’ve seen before, technological advances bring new risks for insurers to assess and manage alongside the benefits. The industry’s broad adoption of AI tools means it is quickly developing a good understanding of the scale of risks and how they can best be mitigated. I forecast that 2026 will be the year when insurers have an opportunity to step up and help UK businesses ensure AI remains a friend rather than a foe.