Simon Glairy is a distinguished authority in the insurance and Insurtech sectors, renowned for his strategic focus on risk management and the integration of AI-driven assessment tools. With years of experience navigating the complexities of evolving oversight, he has become a pivotal voice in helping firms align technological innovation with strict compliance standards. In this conversation, we explore the shifting landscape of insurance regulation, examining how the drive for administrative efficiency, the rise of cyber threats, and the preservation of industry integrity are reshaping the future of risk.
Regulatory bodies are prioritizing the reduction of administrative burdens while simultaneously demanding better insurance access for all demographics. How can firms effectively slash red tape without undermining compliance, and what specific steps should leadership take to ensure these efficiency gains actually reach the end consumer?
The push to reduce administrative friction is a central theme in the 17-page report on regulatory priorities for 2026, which signals a clear intent to modernize how we oversee the market. To slash red tape effectively, leadership must move away from “tick-box” compliance and toward data-led monitoring that automates routine reporting, freeing up resources to focus on consumer outcomes. We see a real opportunity here to leverage technology to simplify the customer journey, making products more accessible to underserved demographics who were previously deterred by complex onboarding. For these gains to reach the consumer, firms should track metrics like “time-to-quote” and “policy clarity scores” to ensure that less paperwork actually translates into a more intuitive user experience. It is about creating a leaner operational model where the removal of redundant processes directly lowers the cost of entry for the policyholder.
As artificial intelligence and cyber risks become central to regulatory oversight, claims handling processes are facing much tighter scrutiny. What frameworks should insurers implement to audit AI-driven decisions for bias, and how can they bolster cyber defenses during the claims cycle to prevent data breaches?
The scrutiny on claims handling is intensifying because the transition to AI-driven decision-making introduces “black box” risks that regulators are keen to unpack. To audit these systems, insurers should implement a “Human-in-the-Loop” framework where automated decisions are regularly sampled and tested against a control group of human-led assessments to detect any socio-economic bias. Step-by-step, this involves mapping every data point used by the algorithm, performing “stress tests” on outlier claims, and maintaining an immutable audit trail of how each decision was reached. On the cyber front, protecting data during the claims cycle requires end-to-end encryption and multi-factor authentication for every claimant interaction, ensuring that sensitive personal information isn’t exposed during the high-pressure period of a loss. By treating cyber defense as a core component of the claims workflow rather than a separate IT function, firms can build a resilient barrier against the rising tide of digital threats.
Economic pressures and rising enforcement actions are reportedly creating a strain on the industry’s culture of integrity and the doctrine of “utmost good faith.” How can organizations balance profit motives with these ethical expectations, and what practical strategies can brokers use to manage debt while maintaining transparency?
The erosion of “utmost good faith” is a significant concern, especially as commercial pressures and mounting debt begin to weigh heavily on smaller brokerages. Balancing profit with ethics requires a cultural shift where long-term customer lifetime value is prioritized over short-term commission gains, reinforcing the idea that integrity is a competitive advantage rather than a cost. For brokers managing debt, transparency is the best defense; they should adopt “open-book” communication styles with their partners and use automated premium accounting tools to ensure client money is ring-fenced and accounted for in real-time. I often tell my colleagues that once trust is lost in this industry, it takes decades to rebuild, so maintaining rigorous standards even during economic downturns is essential for survival. Strategies such as voluntary internal audits and transparent disclosure of fee structures can help maintain that delicate balance between staying solvent and staying ethical.
What is your forecast for insurance regulation?
Looking toward 2026 and beyond, I forecast a shift toward “proactive supervision,” where regulators use real-time data feeds to spot market failures before they impact consumers. We will see a much heavier emphasis on the ethical use of machine learning, with specific mandates requiring firms to prove their algorithms are not penalizing vulnerable populations. Additionally, the boundary between “insurer” and “tech provider” will continue to blur, leading to a new regulatory category that holds software vendors to the same high standards of conduct as traditional carriers. Ultimately, the successful firms will be those that view these tightening regulations not as a hurdle, but as a roadmap for building a more sustainable and trusted financial ecosystem.
