Insurance industry predictions for 2025

January 16, 2025 4:15 PM

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Enjoy complimentary access to top ideas and insights — selected by our editors.

Digital Insurance contacted insurance professionals to discuss what's ahead for the insurance industry in 2025.

The topics including property and casualty, cybersecurity and life insurance are below.

What's ahead for the insurance industry this year?

Darcy Rittinger, chief risk officer at Cover Genius shared: "Currently, regulators are tightening oversight on how financial products like insurance are marketed and sold, with a focus on protecting consumers from misleading information, ensuring access to necessary coverage, and ensuring that the products consumers are buying provide the promised value and benefits as advertised."

Life insurance predictions for 2025

Andrew Burge, vice president, life insurance business development, Nationwide, said: "There will be proactive technology adoption. Traditionally reactive in embracing technological advancements like digitization, mobile platforms, e-commerce, and AI, the life insurance industry is seeing carriers and distributors aggressively adopt these technologies capturing greater market share and expanding the market."

Cybersecurity trends to watch in 2025

Reshma Budhwani, chief technology security officer at New York Life, shared: "In 2025, establishing trust and authenticity for both individuals and digital identities will be increasingly challenging due to advanced AI generating convincing fake audio and video, alongside sophisticated social engineering tactics. This will complicate the detection of deepfakes and the prevention of impersonation and fraud, necessitating organizations to invest in continuous, context-aware identity and transaction validation systems."

Gen AI and IoT: Insurtech predictions for 2025

Haden Kirkpatrick, VP of innovation & venture capital at State Farm, said: "I believe the continuous evolution and advancement of IoT, Generative AI, and other emerging technologies will offer carriers more opportunities in 2025 to better predict and prevent losses via the use of home telematics and other advanced technological solutions."

New and emerging insurance risks to watch in 2025

Bethany Greenwood, group head of speciality risks at Beazley, shared: "As the global market experiences increased divergence of regulatory requirements heading into 2025, multinational corporations must be prepared to respond to a diverse set of changes in laws, regulations, and policies implemented by national governments. Differing levels of oversight and widely shifting legal landscapes have the potential to disrupt operations, limit growth, and cause costs to rise if business leaders are not prepared to respond."

Property & casualty insurance trends to watch in 2025

Casey Kempton, president of Nationwide Personal Lines, shared: "Consumer adoption of technologies that leverage IoT and AI will continue to rise: For insurance carriers, this presents an opportunity to provide real-time monitoring of conditions in the home that could lead to property loss ranging from minor incidents to severe water damage or electrical issues."

Trends in workers' compensation insurance for 2025

Andy Lea, CIO at Embroker, shared: "The workers' compensation landscape is undergoing significant transformation driven by multiple factors. Inflationary pressures combined with rising medical costs are expected to push premium increases into the 3-7% range. The continued evolution of remote work is fundamentally changing claims patterns and risk assessment methods, forcing insurers to adapt their underwriting approaches."