How do fraud and operational risks impact insurer performance in 2026?
In 2026, fraud and operational risks significantly impact insurer performance by increasing financial losses and deteriorating combined ratios. The growing sophistication of fraud schemes, particularly through digital channels, forces insurers to strengthen internal controls and automated detection systems. Operational risks related to processing errors, system failures and non-digitized workflows also increase costs. In response, insurers are heavily investing in advanced analytics, artificial intelligence and process automation to reduce losses and improve operational resilience.