Predictions 2025: Data, Motor, GI and Technology -

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Still the 2025 Predictions keep rolling in – great response from across the insurance sector this year. Here are more thoughts and key trends for you;

LEXIS NEXIS RISK SOLUTIONS

James Burton, MD of LexisNexis Risk Solutions, UK and Ireland:

2025 looks set to be a year when insurance providers go further to get their data AI-ready as they continually strive to meet the rapidly evolving needs and preferences of their customers. The ultimate goal of how we use AI is not that it tells us what to do, but rather how it can give us insights on next steps and enhanced decision making. This can be critical for insurers – after all, the industry relies on human oversight. That’s not going to change. With technology top of mind, a primary aim for the insurance industry this year will be to gain a single customer view based on every previous touchpoint that brand or group of brands may have had with that individual. And imagine the power of this single customer view following a huge business merger or acquisition when separate customer datasets need to come together.

A unified customer record not only helps verify an individual is who they say they are, it also makes it possible to build a rounded view of their insurance history for the basis of all interactions with that individual, from quote to claim. Through identity resolution, it is possible to create this single customer view which can then be built on as the relationship evolves and enhanced through data enrichment.

This process has been easier said than done given the complexity of matching customer records if a name or address has changed. But thanks to the application of probabilistic linking and matching underpinned by comprehensive and varied datasets, customer identity resolution is not just possible, it’s already being employed by a growing number of insurance providers. This is enabling them to segment their customer base, identify cross-sell and upsell opportunities, price a new policy and support a claim with a clearer view of their customer’s needs.

2024 has been challenging from a pricing perspective for all the reasons we know. 2025 offers an opportunity to reset expectations and position insurance as an end-to-end solution more personalised to the individual and their assets. The single customer view is a very good place to start.

SAGACITY

‘Shiela’s Wheels 2.0’: 2025 will see the rise of segmented insurance services, says Dean Standing Chief Customer Officer at data consultancy Sagacity

“In 2025, insurers will shift towards niche, needs-based policies, leaving behind the era of one-size-fits-most coverage. With price comparison sites becoming increasingly crowded, insurers must find fresh ways to stand out to new customers, who will be on the hunt for little offers and conveniences that suit their unique situations. For instance, first-time buyers may prefer buildings-only insurance for essential cover without protecting furnishings they may not yet own. People emigrating need car insurance that honours driving experience from abroad. Meanwhile, younger, budget-conscious customers will value flexible policies that allow mid-term adjustments as their finances change.

“Appealing to new customers is just one side of the coin – having more specialised products will also enable insurers to improve retention. By harnessing data to understand different groups’ varied journeys and future needs, insurers can help customers adjust cover as they enter new life stages – like upgrading to a family car or adding pet insurance to their home cover. This ‘grow-with-your-customer’ approach will unlock valuable upsell opportunities, and build relationships with customers that last decades.”

OPENLY

Ty Harris, Co-founder and CEO of Openly, offers these insights on the Home insurance sector;

On the market overall:

“While no one has a crystal ball to predict the future, there are a few things on the horizon for the homeowners insurance market in 2025. For starters, challenging market conditions are expected to continue, with carriers likely to face increased profitability concerns due to rising claims costs and tightened underwriting. In addition, government involvement in the insurance market will remain a significant factor, pushing carriers to adapt their strategies to mitigate the impact of litigation on their business and profitability. And lastly, independent agents will continue to play an invaluable role in connecting consumers with appropriate coverage, as carriers become more selective.

Regarding technology:

“Innovation continues to be at the root of success in the insurance industry. Tools like data analytics, predictive modeling, artificial intelligence (AI), and machine learning are poised to revolutionize the way insurance is bought, sold and serviced. AI, while still exploratory, holds immense potential for reshaping the industry from the ground up. Technology will continue to impact and improve insurance, from automating routine tasks and reducing operational costs to improving underwriting accuracy and streamlining claims.”

Regarding independent agents:

“Due to market and carrier restrictions, customers will continue to be pushed to evaluate their insurance priorities. This will continue to make the role of the independent agent more valuable as we move through 2025. Amidst a backdrop of limited carrier appetite, independent agents work hard to secure adequate protection for their clients, often with more success than their captive counterparts. There is also a trend toward consolidation among smaller agencies and the increasing adoption of agency models by larger carriers, further solidifying the importance of the independent agency distribution channel.”

SOLLERS

Despite delays in the implementation of Blueprint 2, further digitalisation and advances in market efficiency will help Lloyd’s and the London Company Market remain an attractive insurance hub. Key areas that insurers are focussing on include underwriting, claims, reinsurance, data and cloud. The use of algorithms, analytics, machine learning and AI will increase.

“London market and specialty insurers continue to make progress in digitising and automating their business processes,” comments Jakub Wróblewski, UK London Market Lead at Sollers. “A significant part of the competitive advantage is due to the unique underwriting expertise supported by superior data management capabilities and data governance.”

Based on regulatory requirements, UK general insurers will increasingly focus on security, pricing and customer relationships. Adopting appropriate data strategies and ensuring compatibility between organisations with different core solutions will be critical to gain a 360-degree customer view. Utilising data will also improve pricing, underwriting and claims processes.

“Insurers in the UK need to find a way to ensure that digital channels are as trustworthy and informative as traditional call centres, with the added benefit of gaining real-time insights into ongoing processes,” says Aleksander Czarnołęski, Head of UK GI at Sollers.

The greatest challenges in 2025 will arise from increasing political and regulatory pressure, which makes it more difficult for the insurance industry to adapt and comply. It seems likely that there will be delays in the implementation of EU’s DORA regulation. The Sollers Prediction Report covers the 16 biggest markets with Sollers presence across North America, Europe, and Asia Pacific.

The Sollers Prediction Report 2025 “Window of Opportunity” can be downloaded here:

https://sollers.eu/insights/insurance-industry-trends-2025/?utm_source=mail&utm_medium=pr&utm_campaign=en

DIGITAL ID ROLLOUT

Blair Cohen, Founder & President of AuthenticID sees the rollout of digital ID continuing at pace;

“Identity verification will continue to play a larger role in the insurance space in 2025. We can expect insurers to begin using tools like biometrics to simplify the claims process, helping to make processes faster and more secure for policyholders. As fraud prevention becomes a bigger focus, these technologies will help insurers build customer trust while minimizing processing delays. By adopting identity-based verification, insurance companies can offer a smoother claims experience and better protect against rising fraud in a digital-first world.”

AI DATA SECURITY

Escalating Security Liabilities in AI Data Handling Will Drive Demand for Enhanced Data Visibility, Classification, and Governance, says BRUNO KURTIC, CO-FOUNDER, PRESIDENT & CEO, BEDROCK SECURITY;

By 2025, increasing security risks and AI regulations on data handling will push organizations to enhance data visibility, classification, and governance. With agentic AI systems becoming integral to operations, companies will need full insight into data assets to use them responsibly, emphasizing data sensitivity classification to avoid exposing confidential or personal information during AI training.

A standard practice will emerge: creating a data bill of materials (DBOM) for AI datasets. DBOMs will detail the origin, lineage, composition, and sensitivity of data, ensuring only appropriate data trains AI models. Strict entitlements will limit access, allowing only authorized users to manage sensitive data, thereby reducing accidental or malicious exposures.

As data volumes surge, scalable solutions will be essential to handle diverse datasets. This focus on visibility, classification, and access control will drive new data platforms, advancing AI data governance and mitigating security risks.