Greater efficiency, improved customer experience and heightened competitiveness are key priorities in the insurance industry. In 2025 several key insurance technology trends will play pivotal roles in turning these ambitions into a reality.
At the heart of this transformation, AI and automation, along with large language models (LLMs), have become a red thread running through every major trend, whether through optimising underwriting, improving claims processing, or refining customer interactions. This article will explore the tech trends set to redefine the insurance industry in 2025.
Growth-centric: Speed and automation in commercial P&C solutions
The increased pressure to deliver faster pricing, automation of individual underwriting, and shorter product life cycles will allow highly automated P&C carriers from personal lines to make aggressive inroads into the commercial space, capturing market share from established carriers, especially those in the SME segment.
AI offers additional competitive advantage, improving the speed and accuracy of pricing by enhancing the completeness and quality of data, and also by incorporating and analysing additional external data sources, such as complex natural catastrophes or specific industrial procedures.
To remain competitive, commercial providers will need to become faster and more agile, embracing insurance automation and AI. If they do not, they could lose market share to their tech-savvy competitors. This will require replacing legacy systems with modern, comprehensive, and AI-ready core insurance software platforms, opening up the opportunity to embrace any innovation that comes their way in future.
Profit-oriented: Predictive insurance event modelling
Accurate event modelling and risk prediction have long been the goal in insurance, and AI is making these capabilities more precise and accessible. As long as data is available, structured, and connected via a core platform solution, insurers can use AI-driven analytics to anticipate risks and tailor products more effectively, such as by AI-powered cross-portfolio analysis.
However, achieving these benefits requires eliminating fragmented legacy systems that store data across disconnected silos. A comprehensive, centralised platform will let insurers harness AI-driven insights to their fullest potential, while providing additional opportunity to optimize operations such as with voice and text-based commands that replace cumbersome form-filling.
Ecosystem-ready: APIs as the backbone of insurance data connectivity
Data is the lifeblood of insurance. APIs are becoming essential because they enable the seamless connectivity required to connect, analyse and store data from multiple internal and external sources. However, the flexible and reliable connectivity to brokers, customers, and services afforded by APIs requires the use of a robust and structured internal database.
In 2025, modern core platforms that prioritise robust API integration will empower insurers to build dynamic, interconnected insurance ecosystems that can enhance operational efficiency and customer experience.
Safe and compliant: Strengthening IT security
As AI capabilities expand, cybersecurity risks will become more sophisticated and less predictable. Insurers must prioritise robust security measures to protect sensitive customer data and maintain regulatory compliance. As AI-powered cyberattacks become more prevalent, core platforms must implement state-of-the-art security protocols, including granular user management and controlled access.
Cost-efficient: The rise of e-robots
Automation in insurance is reaching new heights with the rise of agentic AI and robotic process automation (RPA). RPA has already transformed back-office processes in banking, such as by dealing with inefficient and fragmented legacy applications, and now with LLM capabilities the training of software robots will become much more efficient, letting it be used on a broader set of even more complex tasks. In the future, we would expect increased usage of AI agents for out- and input in the core system from and to users, clients, developers and managers.
The ability to replace humans with e-robots for routine tasks and workflows is increasing. And this will have a significant long-term impact on the overall cost structure of insurance carriers. It will allow incumbents to persist in the war for talent and reduce operational costs, and then help smaller players scale up much faster without the burden of overwhelming staff costs.
Navigating the future of insurance technology with ZOV Solutions
The insurance industry of 2025 will be defined by speed, agility, and connectivity. Integrating AI and automation with insurance technology will be essential, helping firms to maintain pace with their competition. Insurers that invest in modern core platform solutions that embrace API-driven ecosystems and integrate with AI-powered analytics will position themselves for long-term success.
Ready to get ahead? Schedule a demo with us today and learn how our core platform SID helps you navigate the changing demands of your customers, now and in the future.
