Source: Business Reporter
A year ago, Forrester predicted a more stable, if not stellar, performance for insurers in 2024 after a couple of years of higher-than-expected claims costs. In 2025, we predict that insurers will continue to pass on higher costs of rising claims expenses to customers. This improving profitability will translate into increased tech spending as insurers prioritise innovation, data, AI and automation – but most insurers won’t see immediate, material and direct benefits from AI.
AI’s promise of transforming underwriting, claims and customer experience remains untapped, and only a tiny fraction of insurers will harness its full potential by 2025. Tech-driven product innovation such as embedded insurance and usage-based insurance may yield faster results, but long-term AI gains remain on the horizon.
In 2025, Forrester predicts that:
- Tech spending will be on the rise
- Few insurers will see direct AI gains
- Embedded insurance will provide a bright spot
Read the full article: https://www.business-reporter.co.uk/finance/forresters-2025-insurance-predictions-tech-spending-will-surge-but-can-ai-deliver-on-its-promises
