Property and casualty insurance top trends 2025

Industry Investment Rating - The report does not explicitly provide an overall industry investment rating, but it highlights significant trends and opportunities in the Property and Casualty (P&C) Insurance sector for 2025 [2][4] Core Themes - The report identifies three broad themes for 2025: Customer First, Enterprise Management, and Intelligent Industry [4][6][7][8] - Customer First: Focus on transforming customer experience through omnichannel interactions and personalized products [6] - Enterprise Management: Revamping processes and operations to improve agility and cost efficiency [7] - Intelligent Industry: Leveraging modern digital solutions to transform the value chain from design to delivery [8] P&C Insurance Trends - Customer Centricity: Insurers are rebuilding customer experiences to maximize win rates, cross-sell, and up-sell opportunities [9][13] - Policies in Force: Personal line leaders are prioritizing growing policies in force over re-underwriting the book [9][17] - Underwriting Workbenches: Commercial line insurers are investing in advanced underwriting platforms for competitive advantage [9][36] - High-Speed Pricing: Insurers are building capabilities for rapid recalibration of risk models and pricing to keep up with market changes [9][44] - Cost Take-Out: Insurers are shifting operating models and technology strategies to achieve scaled efficiencies [9][55] - Broker and Agent Engagement: Carriers are driving distribution partner engagement through simple, fast, and easy experiences [9][62] - Process Revolution: AI and Gen AI are streamlining processes across the value chain [9][71] - Strengthened Security: Insurers are investing in security capabilities to protect against massive breaches [9][79] - Value from Data: Data estate renovations are making the right information available across the value chain [9][87] - Niche Market Innovation: Carriers are exploring innovative offers in cyber, pet, parametric, and other small markets [9][95] Health Insurance Trends - Personalization through Partnerships: Collaborations with hospitals and tech companies are helping insurers develop personalized care plans [9] - Expanded Coverage: Alternative care delivery is widening to include behavioral, virtual, specialty, and home health [9] - Legacy Modernization: Rising healthcare costs are driving insurers to digitize core systems for accessibility and affordability [9] Life Insurance Trends - Modern Experiences: Insurers are revamping customer experiences with modern capabilities to increase engagement and retention [10] - Non-Insurance Services: Value-added services for the silver economy are enhancing customer lifetime value [10] - Advisory Capabilities: Intelligent technologies are helping agents and brokers assess clients and personalize recommendations [10] Sustainability Trends - Sustainable Product Opportunities: Growth in eco-friendly debt instruments and insurance products is being observed [10] - ESG Risk Criteria: Financial institutions are increasingly incorporating ESG risk factors into investment strategies [10] - Decarbonization of Portfolios: Stakeholders are prioritizing low-carbon investments to reduce carbon footprints [10] Key Data Points - Telematics Adoption: 72% of commercial insurers offer or plan to offer telematics-based products [46] - Natural Disaster Losses: Economic losses from natural disasters reached USD 280 billion in 2023, with insured losses at USD 108 billion [46] - Cyber Insurance Growth: Expected to grow from USD 14 billion in 2023 to USD 29 billion by 2027 [97] - Parametric Insurance Growth: Projected to reach USD 29.3 billion by 2031, up from USD 11.7 billion in 2021 [97] - Pet Insurance Growth: Estimated to grow at a 14% CAGR from 2023 to 2030, reaching USD 18 billion [97] Case Studies - State Farm: Added an Accident Assistance feature to its Drive Safe & Save app, enhancing customer satisfaction [24] - Zurich UK: Reduced claim time to ~13 minutes and drove a 400% customer adoption growth through video and WhatsApp messaging services [24] - Markel UK: Partnered with Cytora to digitize underwriting processes, reducing quote turnaround time from one day to two hours [42] - Aviva: Partnered with hyperexponential to implement the hx Renew pricing platform, cutting build time by 75% [49] - Allstate: Adopted a cloud-first approach, cutting claim filing time from four minutes to 43 seconds [91]