As the re/insurance market progresses into 2025, the industry is prioritising innovation to stay ahead, with a high percentage (55%) focusing on AI and machine, a recent Reinsurance News poll has revealed.
This emphasis on AI and machine learning reflects the growing recognition of its transformative potential in areas such as risk assessment, claims processing, and fraud detection to boost efficiency.
As AI and machine learning take the lead, big data analytics fell in second place with 31% of participants selecting it as their primary area of innovation.
The analysis of big data empowers re/insurers to extract meaningful patterns and trends from vast datasets, leading to more accurate risk assessments, improved pricing strategies, and enhanced customer experiences.
Customer experience (CX) technology is also on the radar, with 9% of re/insurers saying they are looking to prioritise solutions to enhance customer interactions and satisfaction.
Although cloud computing currently accounts for only 4% of prioritised innovation areas, its importance has the potential to grow as the industry embraces digital transformation.
Cloud computing offers scalability, flexibility, and cost-efficiency, making it an attractive option for re/insurers looking to modernise their IT infrastructure.
Overall, the re/insurance market in 2025 is characterized by a strong commitment to innovation, yet there are some that believe there is more to be done as the industry is not reaching customer expectations.
Alastair Swift, Head of CRB Global Lines & CEO of Willis Limited, argues that despite insurers’ innovation efforts they are struggling to meet customer expectations.
He pointed to the cyber insurance market as an example of slow innovation. He also emphasised the need for customers to adapt alongside insurers, but noted that getting customers to change their views on re/insurance could be challenging.
At the same time, he criticised insurers for reducing capacity and increasing prices during challenging times, and suggested that while there are more insurance products available, many are less functional, despite some of them being cheaper.
While customer satisfaction has been rising due to technology, the cost of living crisis has caused it to plummet, and with everything becoming more expensive and customers having to spend more, they expect more.
All these lead to customers being unhappy with the value they are receiving, leading to increased complaints, Swift concluded.
