IDC FutureScape: Worldwide Insurance 2025 Top 10 Predictions
This IDC FutureScape presents the top 10 insurance industry predictions. Each prediction is shaped by a shared set of key drivers, serving as a planning tool for technology leaders and their line-of-business (LOB) counterparts in their IT strategic planning efforts."Insurers are finally past the hype in their GenAI path-to-impact journey, recognizing that deploying technology won't provide value unless coupled with business acumen that permeates its purpose," said Davide Palanza, research manager, IDC Financial Insights. "However, attempting to 'boil the ocean' with scattered, 'shotgun' implementations will lead to execution failure. Success will depend on how effectively insurers act on their enterprisewide vision by taking informed, surgical, and synchronized steps across the organization to adjust their operating models, elevate digital leadership, and focus on data and AI to ignite AI-fueled business transformation. Only then will the industry truly glimpse what the future holds."
IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2025, 60% of global commercial P&C insurers will use comprehensive underwriting platforms with AI-driven ESG scoring tools to enhance risk assessment and pricing.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 2: By 2026, 30% of insurers will achieve over 80% success rate on their GenAI initiatives by appointing an AI orchestrator to break down internal silos.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 3: In 2026, half of insurer-insured interactions will occur in real time through digital self-service tools, boosting conversational engagement across channels and enhancing customer satisfaction.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 4: By 2027, 65% of global insurers will adopt AI-driven legacy code modernization and green-certified cloud datacenters, greatly enhancing energy efficiency and advancing sustainable IT practices.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 5: By 2027, 40% of health insureds will enroll in multiyear reimbursement models, causing the need for long-term data infrastructure investment to support linking payment to longitudinal care models.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 6: By 2027, insurers that integrate AI with FinOps will be able to consistently realize 25% more value from their IT investments, driven by informed automation at scale.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 7: By 2028, 70% of global insurers will revamp their data intelligence architectures through strategic partnerships with IT service providers, resulting in a 30% rise in successful AI deployments.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 8: By 2028, 90% of AI vendors and 50% of G2000 firms developing their own AI solutions will use insurance-backed performance guarantees, driving 1 in 4 P&C insurers to enter the market.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 9: By 2029, 70% of the insurance workforce will master human-machine collaboration, emphasizing personalized learning, critical thinking, and communication, boosting efficiency and customer satisfaction.
Associated Drivers
IT Impact
Business Impact
Guidance
Prediction 10: By 2029, edge connectivity will boost market risk transparency, leading to over 35% of insurance-linked securities being IoT-powered and prompting insurers to improve capital adequacy and resilience.
Associated Drivers
IT Impact
Business Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
AI-Driven Business Models — Moving From AI Experimentation to Monetization
The Drive to Automate — Toward a Data-Driven Future
Future Proofing Against Environmental Risks — ESG Operationalization and Risk Management
AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today
Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape
Battling Against Technical Debt — Overcoming Hurdles to IT Modernization
Customer Experience Squared — Consumer and Citizen Expectations for Digital Services
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