The future of insurance: 3 key trends to watch in 2025
Between the rapid advancement of technology, increasingly high customer expectations and ongoing macroeconomic fluctuations, 2025 is set to be a year of both challenges and opportunities for the insurance industry. Plus, as the talent dilemma persists, insurers across the industry are continuing to navigate talent shortages and attempting to attract the next generation. The insurers that keep a close pulse on ongoing shifts and trends will be well positioned to boost operational efficiencies, enhance customer and agent interactions, and grow next year and beyond.
More insurers target growth, causing a renewed focus on the agent experience. The P&C market has shown signs of softening this year, which will cause many insurers to target more growth in 2025 than in years past. With a concentration on expansion and new customer acquisition, the agent and customer experience will become a top priority. This is a departure from recent years, when carriers have largely pushed the agent experience to the backburner due to business selectivity in the harder market. As insurers refocus on growth, it will become critical for carriers to enable seamless interactions with agents and increase responsiveness, with the goal of becoming the carrier of choice among agents.
The AI narrative evolves. While AI was certainly a trending topic this year, next year the conversation around AI will shift from initial research and proof-of-concept phases to widespread implementation and value realization. The real winners will be those who harness AI to optimize processes and reduce operational costs. Rather than just looking to leverage AI to reduce headcount, insurers will increasingly embrace the technology to increase the productivity of their existing workforce. Those that effectively deploy AI will also create a competitive advantage when it comes to attracting and retaining talent, especially from younger generations.
Interaction technology will be prioritized. There will be a continued prioritization of digital self-service capabilities for both customers and agents next year, making every two-way interaction that much more important for insurers to get right. With customers and agents increasingly expecting fast, seamless collaboration and support, carrier loyalty hinges on meeting these expectations. As part of this focus on technology, insurers will look to streamline and consolidate their tech stack, especially when it comes to the contact center. They will look to identify platforms that can solve multiple needs instead of relying on disparate, inefficient point solutions.
The insurance industry is on the precipice of transformation, driven by sophistication in AI, changing market conditions and more modern interaction technologies. Insurers that take heed of these shifts, investing in the strategies and technology needed to elevate the agent and customer experience, will be well positioned to attract and retain top talent, drive new customer acquisition and revenue, and carve out a strong competitive advantage.
