8 Trends Shaping the Future of Insurance in 2025

The risk-averse DNA of insurers and their focus on underwriting margins, profitability, and capital levels to align with regulatory requirements impedes and restrains change within their organizations, including optimization and innovation. While managing financial risk is crucially important, operational and strategic risk are just as important to ensure sustainable and profitable growth by focusing on technological and operational excellence, product innovation, channel optimization, and rethinking the business model to redefine how we do insurance in a world of constant change.

The biggest risk for insurers is not changing. The pressures and challenges of macroeconomic factors, increased costs and combined ratios, operating performance, expanding risks, and technology advancements are compelling insurers to respond to the need to improve, both operationally and innovatively. Why? The current operational business models are falling out of synch, and the technologies that provided their foundation must be re-tuned or replaced.

Insurance is waking up to a realization that the operational models and technology foundation no longer meet the challenges and opportunities of today’s fast-changing world and must move beyond the legacy and internal mindset of “this is how insurance is done,” to one that recognizes the world has shifted and they must as well. In some ways, this is the legacy of the first InsurTech efforts that are only now being fully realized. Disruption was needed. It has taken some insurers time to figure out just how much it still is needed.

Read this report to better understand:

• The crossroads the insurance industry currently faces – and how we got here.
• How trends we identified in the past are faring today.
• The key trends we’ll see in 2025 that are accelerating the future of insurance.