Insurance Predictions 2025 - Strategic Intelligence
Summary
This report provides an in-depth analysis of the future of the insurance market. It identifies the key themes in the industry and assesses how successful they have been and how they will develop.
In this report, we identify the top 15 themes that will impact the insurance sector in 2025. For each theme, we offer a series of predictions, identify winners and losers, and highlight relevant further reading. In 2025, the major themes impacting the insurance sector will be cyber insurance, ESG, and AI. In particular, AI opens up a wide variety of opportunities across the insurance value chain. As a result, insurers that can establish themselves as leaders within this theme will benefit greatly.
Scope
- AI technology is still at a relatively early stage within the insurance industry. However
- GlobalData surveying shows that a large proportion of insurance customers around the world are open to trying AI across various areas of the insurance value chain.
- Parametric insurance is most established within commercial property
- but it will go beyond that in the future. The principle of tracking something and immediately paying out in the event of cancellation or delay could be applied to other lines.
- US President Donald Trump’s pro-crypto stance signals a shift toward more favorable regulation and increased institutional involvement from the US. This could lead to broader adoption of digital assets
- including in the insurance space.
- Discover which themes will have the biggest impact on the insurance sector over the next 12 months.
- Benchmark yourself against the rest of the market.
- Ensure you remain competitive as new innovations and insurance models begin to enter the market.
- Executive Summary
- Top Themes for 2025
- Viewing the world’s data by theme helps you make important decisions
- Artificial Intelligence
- Insurance consumers around the world are ready to use AI
- Speed of responses is key for customers and will drive interest in AI
- Winners and losers
- Further reading
- ESG
- Global consumers think insurers have a role to play in climate change
- A large proportion are willing to pay extra for sustainability
- Winners and losers
- Further reading
- Cyber Insurance
- Commercial cyber will see sharp growth over the next few years
- There is a significant global market for personal cyber insurance
- Winners and losers
- Further reading
- Personalization
- The desire for tailored policies is strong and will make this a leading theme
- Telematics in motor shows consumers like personalization if they see savings
- Winners and losers
- Further reading
- The Internet of Things
- IoT devices’ strong penetration rates among global consumers will benefit insurers
- Younger consumers are open to engaging with insurers on their health
- Winners and losers
- Further reading
- Inflation and the Cost of Living
- The global economic outlook is improving but the cost of living remains a key theme
- Insurers in certain lines will be vulnerable to cancellations in 2025
- Winners and losers
- Further reading
- Health and Wellness
- Consumers will value physical and mental wellbeing greatly in 2025
- Work-life balance is still the top employee benefit for 2025
- Winners and losers
- Further reading
- The Future of Work
- The workplace is changing, and insurers need to adapt
- The gig economy trend will be accelerated by younger generations
- Winners and losers
- Further reading
- Electric Vehicles
- Electric vehicles will transform the motor insurance sector
- Insurers face a substantial challenge from manufacturers
- Winners and losers
- Further reading
- Data Analytics
- A spike in M&A deals suggests interest in big data will continue to rise
- Insurers are always looking to expand their expertise in big data
- Winners and losers
- Further reading
- Cryptocurrencies and Blockchain
- Concern over theft and hacking of digital assets will be crucial to insuring this area
- The outlook for cryptocurrencies will remain positive in 2025
- Winners and losers
- Further reading
- Insurtech
- Insurtechs can challenge insurers in niche areas, collaboration will remain the trend
- Insurtech deals saw a large spike in value in 2024
- Winners and losers
- Further reading
- Embedded Insurance
- Embedded insurance poses threats and opportunities for insurers
- Many consumers will trust tech players with simple insurance policies
- Winners and losers
- Further reading
- Parametric Insurance
- Parametric insurance will get more popular as severe weather events increase
- We will see more parametric insurance beyond property lines
- Winners and losers
- Further reading
- Geopolitics
- Geopolitical issues will continue to shape the insurance industry
- Trump’s presidency will have a large effect on the insurance market
- Winners and losers
- Further reading
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: GlobalData reports
- List of Figures
- Figure 1: The biggest insurance themes driving growth in 2025
- Figure 2: Global consumers are open to using AI in the insurance process
- Figure 3: Global consumers want insurers to play a role in tackling climate change
- Figure 4: A significant proportion of UK consumers are open to paying more for sustainability
- Figure 5: Global consumers will share very personal data for rewards
- Figure 6: Global consumers regularly use IoT devices for health purposes
- Figure 7: Global consumers are concerned about the cost-of-living crisis going into 2025
- Figure 8: Consumers are concerned about both mental and physical health
- Figure 9: Global consumers are taking up second jobs to supplement income
- Figure 10: The move to electric vehicles is getting closer for many consumers
- Figure 11: Global insurers are looking for expertise in data analytics
- Figure 12: Global consumers are most concerned about the hacking of digital assets
- Figure 13: One in five global consumers would buy home insurance from an insurtech
- Figure 14: UK consumers could be tempted by gadget insurance directly from the provider
- Figure 15: A large proportion of consumers would pay more for parametric insurance
- Figure 16: Geopolitics continues to grow as a theme in the global insurance industry
- Figure 17: Our five-step approach for generating a sector scorecard
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