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    • AFM Annual Conference & AGM 2026: Key Insights for Financial Mutuals

    Sedona Digital

    October 15, 2026

    This article is written and published in conjunction with Sedona Digital

    A team from Sedona Digital, including three members of our Executive Leadership Team, attended the Association of Financial Mutuals (AFM) Annual Conference and AGM 2026, held on 5–6 October at De Vere Cotswold Water Park in the Cotswolds.

    The conference brought together leaders, experts and partners from across the UK’s financial mutuals sector for two days of insight, discussion and relationship-building. Discussions explored the challenges facing mutual insurers and friendly societies, from global economic uncertainty and investment resilience to artificial intelligence (AI), data modernisation and cybersecurity.

    What were the key takeaways from AFM 2026?

    AFM 2026 highlighted three priorities for UK financial mutuals: building resilience amid economic uncertainty, adopting AI with stronger governance and cost control, and modernising data, applications and cybersecurity. For Sedona Digital, the event reinforced the importance of secure, scalable technology foundations that protect member trust and support sustainable growth.

    It was particularly valuable to reconnect with leaders from our clients, including The Exeter and MetFriendly, and to reflect on how our partnerships continue to evolve alongside the sector’s changing priorities.

    How is global uncertainty affecting financial mutuals?

    Global uncertainty is affecting financial mutuals through investment volatility, rising operating costs, energy-price pressure and the need for stronger organisational resilience. These pressures can influence both business performance and the financial wellbeing of members.
     
    The conference’s keynote discussions explored how geopolitical tensions, changing global relationships and energy pressures are creating practical challenges for businesses and financial institutions.
     
    Increasing defence expenditure across Europe, shifting global economic dynamics and ongoing energy-cost pressures are influencing investment strategies, operating costs and organisational resilience. Competition between China and the United States for global economic influence was another prominent theme. As one speaker put it, “You have a seat at the table, or you’re on the menu.”
     
    Investment diversification remains an important consideration, with organisations continuing to assess how investment managers balance returns, risk and long-term stability. As the external environment becomes less predictable, access to reliable information, effective risk management and the ability to respond quickly are becoming more important.
     
    Technology can improve visibility across investments, operations and risk, helping leadership teams make faster, better-informed decisions and build greater resilience.

    How should financial mutuals approach AI adoption?

    Financial mutuals should approach AI adoption as a governed business transformation, not simply a technology experiment. The priority is to establish clear controls around data, security, compliance, accountability and cost before scaling AI across the organisation.

    AI was a major topic throughout AFM 2026, reflecting both growing investment in the technology and increasing caution about how it is adopted.

    AI offers clear opportunities to improve efficiency, automate processes and enhance member experiences. However, concerns remain around automated errors, security, regulatory compliance, accountability and unexpected cost.

    A recurring theme was the need to establish effective governance before accelerating adoption. Standards such as ISO/IEC 42001 can provide a structured framework for AI management, while ICO guidance remains central to data protection, transparency and accountability. The practical challenge is applying these requirements consistently across business processes, cloud platforms, applications, data and financial controls.

    Many insurers are still developing the governance structures needed to move
    confidently from experimentation to wider AI adoption. Specialist technology
    partnerships can help by combining expertise across data, cloud, security, quality engineering and AI governance to create secure, scalable foundations.

    How can mutuals avoid AI provider lock-in?

    Mutuals can avoid AI provider lock-in by maintaining flexibility in their technology choices, avoiding over-reliance on a single provider and retaining control over their data and operating costs. This is particularly important given the concentration of advanced AI capability among large US-based technology companies.

    The priority is not simply adopting AI quickly. It is ensuring AI delivers measurable value without introducing unnecessary risk.

    What is the true cost of AI adoption?

    The true cost of AI adoption includes far more than cloud infrastructure and token consumption. Organisations must also account for development, integration, testing, security, monitoring, governance and ongoing support.

    Financial transparency was another significant concern at AFM 2026. AI investment decisions often focus on infrastructure and token bills, without accounting for the wider costs of building, running and maintaining AI-enabled services.

    Without a complete view of these expenses, organisations risk underestimating the true cost of AI adoption. This is where FinOps an approach to improving financial accountability and technology cost management becomes increasingly important.

    Recognising this challenge, Sedona Digital is investing in AI-enabled FinOps applications and services designed to improve cost transparency, forecasting and financial control. For mutual organisations, understanding the full financial implications of AI will be essential to turning investment into sustainable business value.

    Why are financial mutuals modernising applications and data?

    Financial mutuals are modernising applications and data to improve operational efficiency, launch services more quickly, respond to changing member needs and create stronger foundations for AI. Legacy systems and fragmented data often slow decision-making and limit business agility.

    Beyond AI governance, discussions highlighted growing expectations around business applications and the need for organisations to become more adaptable.

    Legacy systems and traditional development approaches can create bottlenecks. AI-assisted and agentic development capabilities are beginning to change how organisations approach software delivery, with product owners and business analysts exploring opportunities alongside engineering teams.

    While these technologies can accelerate development and testing, effective quality assurance, security and governance remain essential.

    How can mutuals modernise data without disruptive migration projects?

    Mutuals can modernise data without relying solely on disruptive migration projects by adopting flexible approaches such as lakehouse technologies, metadata frameworks and AI-enabled data discovery. These approaches can improve access to information while reducing the delays associated with traditional migration programmes.

    Many organisations still rely on fragmented information spread across legacy systems, making data difficult to access and use effectively. Traditional migration programmes can be costly and time-consuming, often limiting business agility.

    As a result, organisations are exploring more flexible approaches, including lakehouse technologies such as Delta Lake, metadata frameworks and AI-enabled data discovery. These capabilities can improve access to information and create stronger foundations for AI adoption.

    Is existing cybersecurity fit for purpose in an AI-enabled world?

    For some organisations, existing cybersecurity arrangements may no longer provide sufficient visibility or protection in an environment shaped by cloud platforms, connected applications and AI. This is driving interest in next-generation security operating models.

    Increased connectivity also introduces new security considerations. As organisations expand their use of cloud platforms, connected applications and AI, their exposure to potential threats continues to grow.

    Some organisations are reassessing whether their existing security operating models provide sufficient visibility and protection. This is driving interest in next-generation Managed Security Operations Centres (SOCs), continuous monitoring and proactive security improvement.

    For financial mutuals, these investments are ultimately about protecting sensitive member information, maintaining operational resilience and preserving trust.

    What does AFM 2026 mean for the future of financial mutuals?

    AFM 2026 signals that financial mutuals must treat resilience, AI governance, data modernisation and cybersecurity as interconnected priorities rather than separate technology projects. Sustainable growth will depend on building the right foundations across data, platforms, security and financial visibility.

    The conference highlighted a sector navigating significant economic, technological and operational changes.

    These challenges are increasingly interconnected. AI adoption depends on data quality and governance. Data modernisation affects security. Cloud and AI costs affect financial resilience. And every technology decision ultimately affects member trust.

    For mutual organisations, successful transformation will depend on identifying where technology can deliver meaningful outcomes whether through improved member experiences, greater efficiency, stronger resilience or better decision-making.

    How can Sedona Digital support financial mutuals?

    Sedona Digital supports financial mutuals by helping them modernise technology environments, improve data accessibility, strengthen security and create governed pathways for AI adoption. Our experience spans software engineering, data, cloud, AI, quality engineering and security.

    Our work with mutual and friendly societies focuses on practical outcomes: modernising technology environments, improving data accessibility, strengthening security and creating governed pathways for AI adoption.

    The conference also reinforced the importance of long-term relationships. Our partnership with The Exeter, spanning more than 15 years, reflects our commitment to understanding clients’ evolving priorities and working together to achieve their goals.

    What was Sedona Digital’s role at AFM 2026?

    Sedona Digital attended AFM 2026 with members of its Executive Leadership Team and sponsored the Welcome Drinks Reception ahead of the Gala Dinner. The event provided an opportunity to reconnect with clients, meet new contacts and better understand the sector’s priorities.

    A big thank you to the Association of Financial Mutuals for organising such an insightful and enjoyable event.

    We left AFM 2026 with fresh perspectives, stronger connections and a clearer understanding of the opportunities ahead. As the sector continues to evolve, we look forward to working alongside our clients and partners to turn these insights into meaningful outcomes.

    And, as you would expect in the mutuals community, doing so together.

    FAQs

    What were the main themes at the AFM Annual Conference and AGM 2026?

    The main themes were leadership, growth and impact, with particular focus on economic resilience, investment strategy, AI adoption, data modernisation, cybersecurity and the changing needs of mutual insurers and friendly societies.

    When and where was AFM 2026 held?

    The AFM Annual Conference and AGM 2026 took place on 5–6 October 2026 at De Vere Cotswold Water Park in the Cotswolds.

    Who attends the AFM Annual Conference?

    The event brings together senior leaders from UK mutual insurers, friendly societies and wider financial mutuals organizations, along with industry experts, partners and technology providers.

    Why is AI cost transparency important for insurers?

    AI cost transparency is important because infrastructure and token costs are only part of the total investment. Development, integration, testing, security, monitoring and ongoing support can significantly affect the true cost and return on AI initiatives.

    What is FinOps in the context of AI adoption?

    FinOps is an approach to managing and optimising technology costs. In an AI context, it helps organizations forecast spend, allocate costs accurately, compare provider options and ensure AI investments deliver measurable business value.

    Was Sedona Digital involved in AFM 2026?

    Yes. Sedona Digital attended AFM 2026 with members of its Executive Leadership Team and sponsored the Welcome Drinks Reception ahead of the Gala Dinner.

    Get in touch to find out more