Insurance and reinsurance market to prioritize digitalization and innovation in 2025
The insurance and reinsurance market to prioritize digitalization and innovation in 2025, with 55% of market participants focusing on artificial intelligence and machine learning.
The emphasis on AI and ML technologies reflects the growing recognition of the transformative potential in areas such as risk assessment, claims management and fraud detection to improve the efficiency of insurers and reinsurers.
As artificial intelligence and machine learning take the lead, big data analytics came in second place, with 31% of participants choosing it as their main area of innovation.
Big data analytics enables reinsurers to find meaningful patterns and trends from huge data sets, enabling them to more accurately assess risks, refine pricing strategies and improve customer interactions.
Customer Experience (CX) technology is also on the radar, with 9% of market participants saying they are looking to prioritize solutions to improve customer engagement and satisfaction.
While cloud computing currently accounts for just 4% of priority innovation areas, its importance could grow as the industry embraces digital transformation.
Cloud computing offers scalability, flexibility and cost-effectiveness, making it an attractive option for reinsurers looking to modernize their IT infrastructure.
The global insurance market in 2025 is characterized by a commitment to innovation, but there are some who believe more needs to be done as the industry falls short of customer expectations.
Experts say that despite insurers’ innovation efforts, they are struggling to meet customer expectations. They point to the cyber insurance market as an example of slow innovation.
Insurance and reinsurance market participants need to adapt customers along with insurers, but getting customers to change their views on insurance can be a difficult task.
Reinsurers are not happy that insurers are reducing reinsurance capacities and coverage due to rising rates. Also, despite the fact that more insurance products are available on the market, many of them are less functional, although cheaper.
While customer satisfaction is increasing thanks to technology, the cost of living crisis has led to a sharp decline, and as everything becomes more expensive and customers have to spend more on insurance protection.
All this leads to customers being dissatisfied with the value they receive from insurance, which leads to an increase in complaints and switching insurance partners.