Predicting the future for insurance: Areas to watch in 2025
Introduction
While many would appreciate having a crystal ball to see into the future, this insurance industryfocused research study provides valuable insights into the key factors that could impact carriers and policyholders in 2025 and beyond. Insurance professionals believe the macroeconomic landscape for the industry will be mostly favorable; however, they see inflation, climate change and regulatory uncertainty as factors that could affect carriers and company growth.
The use of artificial intelligence (AI) and generative AI continue to provide both opportunities and risks, and a significant number of firms anticipate increasing their technology spending in 2025. Customers are more comfortable with using technology for many aspects of their insurance experience, and with that adoption comes higher expectations for transparency, online efficiencies and speed.
Key findings
- Almost eight in 10 firms say they are increasing their tech spend in 2025, focusing on the areas of AI, big data, cloud computing and digital infrastructure.
- Most firms are investigating how to adopt generative AI into their business practices and approximately 30% have implemented this technology in some manner. However, budget constraints could delay future implementations.
- The biggest opportunities for growth are in customer-facing services like claims management and customer experience.
- The majority of insurance professionals see fraud as a significant challenge for the industry in 2025 and anticipate losses from insurance fraud could be equivalent to or greater than those seen in 2024.
- While insurance professionals believe younger consumers want a more transparent digital experience, many admit they struggle with truly understanding what these customers are looking for.
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