2026 FinTech Predictions: Insights from Rob Schumacher of Feather

I spoke with Rob Schumacher, CEO and Co-Founder at Feather, a digital insurance provider that supports expats in Europe. Rob shares his perspective on the insurance technology landscape heading into 2026, from industry consolidation to the evolving role of AI in delivering both efficiency and trust.

Over to you Rob - my questions are in bold:

What's the biggest shift you expect across insurance services in 2026?

The most significant shift in 2026 will be accelerated industry consolidation. Driven by improving technology, tightening macro-economic conditions and commoditisation, the market can function with a fraction of today's players.

Larger, more diversified institutions will gain an advantage by spreading risk, absorbing pricing volatility, and acquiring firms that lack the scale to survive pricing swings or capital pressures.

Which emerging technology will have the most practical impact on insurance providers?

Generative and agentic AI will have the most practical impact. In insurance, AI is already being deployed across automated claims processing, quote generation, fraud detection, and personalised training. AI will transform efficiency and operational effectiveness, delivering measurable results such as reduced processing times, faster product launches and support in judgement-driven tasks.

What customer behaviours or expectations will most challenge insurance providers?

Customers will increasingly expect faster, smoother, and more personalised experiences, while still valuing empathy and reassurance. AI is enabling clearer, more empathetic communications, improved responsiveness through chatbots, and more consistent service outside traditional business hours. However, customers will continue to expect human judgement in moments that require trust or nuanced decision-making.

The challenge for providers will be delivering efficiency and personalisation at scale without losing the human connection that underpins confidence in financial services.

What risks or blind spots do you think the industry is underestimating as we move into 2026?

One key blind spot is assuming AI alone is sufficient for an efficient operation. Human oversight remains essential to ensure AI tools operate as intended and deliver consistent quality. Both AI and human oversight can enhance each other and help deliver customer demands.

Risk management is another underestimated area: while AI can significantly improve fraud prediction and detection, criminals are also using AI to create fake identities, forge documents, and bypass verification systems. It is important for providers to identity gaps and create plans of actions for improvement.

If you were advising an insurance provider's leadership team today, what strategic priority should they focus on to stay competitive in 2026 and beyond?

The priority should be building a human-centred AI strategy. This means investing in advanced AI capabilities to improve efficiency, manage risk, and streamline operations, while simultaneously investing in people to provide judgement, oversight, and trust. The goal is not technology for its own sake, but using AI to enhance the work of professionals and refine the customer journey. Firms that successfully combine artificial and human intelligence will be better positioned to deliver faster, more precise services while preserving the human touch that customers value.

Thank you Rob! You can connect with Rob on their LinkedIn Profile and find out more about the company at feather-insurance.com.