Strategic Priorities 2025: A Modern Era of Insurance Comes into Focus

2025 is a massive wake-up call for insurance. It is just five years until a new decade that promises to be dramatically different than when we entered 2020. In 2020, COVID was a jolt to the industry, pushing insurers to digitally transform. We are now seeing the impact of economic factors like inflation, supply chain challenges, rising interest rates, lower disposable incomes, and low unemployment fueled by retirements of the Gen X and Boomer workforce.

Adding to this are challenges of profitability, increased catastrophe losses, rising loss ratios, increased claims costs, increased medical costs, rising reinsurance prices, and tightening capacity. Furthermore, the pace of technology change and advancement of AI, particularly GenAI, is only accelerating.  The challenging industry picture and the increased cost of insurance for customers due to rising operational costs painfully highlight how necessary new operating models and technologies have become.

While the industry’s core business model of premiums, claims, reserves, and capital is not changing, how we think about the operating model and technology foundation must change. Insurers’ traditional mindset of “this is how insurance is done” must be challenged to maximize the potential of technology. The demand for change is placing insurers at a crossroads of rethinking their strategies and priorities to compete today and in the fast approaching next decade.

Read this report to better understand:

• Insurers’ strategic response to the changing market landscape.
• Where resources are being allocated to fuel optimization, transformation, and innovation.
• Insurers’ plans and priorities for the fundamentals of their business, including business models, products, distribution channels, core systems technology, data and analytics, including AI and GenAI, and operational systems technology for rating, pricing, underwriting, and more.