If you work in the insurance sector, you will know that in 2025 the insurance market is witnessing a moment of transformation due to political and social changes. This is a time when companies will have to seize the opportunities presented to them. Technology, sustainability and personalization will be some of the key axes in this process, redefining business models and customer relationships.
Discover in this article the insurance trends 2025 that will be key to face this change and how your company can prepare for the future of the sector.
The insurance market in 2025
If there is an ideal time of the year to analyze where a specific industry is heading and get a broad view of it, it is the first quarter. However, we cannot analyze the situation without ignoring certain events that have created a context of uncertainty around the world.
According to the 2025 Global Insurance Outlook, prepared by the Deloitte Center for Financial Services, the macroeconomic consequences of the pandemic; technological acceleration; environmental, social and governance (ESG) issues; changes in consumer habits; market growth; and increasing regulatory and fiscal pressure are affecting companies and organizations of all shapes and sizes and locations.
As the urgent need for change approaches, companies in the insurance industry must be prepared to efficiently rethink their business model, their commercial network and the way they interact with customers.
Insurance trends 2025
But what long-term changes are needed in this traditionally risk-averse and slow-to-change industry to meet global challenges?
Although there are several reports that point out different insurance trends 2025 in the insurance sector, in a general overview, they all agree that there will be four major branches that will determine the year of this sector. Trends that companies will have to establish in their map of priorities when setting out their strategies.
Artificial Intelligence and technology
Artificial Intelligence is everywhere, and in this branch it was not going to be less. Insurers can be more accurate in calculating future regulatory trends thanks to the use of AI systems and, with this, be able to prepare to comply with them, minimizing the risks of non-compliance before they arise. Capgemini further notes that each business will explore different possibilities within AI:
- Non-Life Insurance. AI can streamline processes across the value chain and automate underwriting processes. Consequently, it would trigger a wave of actions that would result in accelerated assessment and decision making, reduced risk and greater efficiency as underwriters can focus on more complex claims.
- Life Insurance. In this segment, the focus will be on personalization and market expansion. Companies in the sector will be able to adopt digital tools and smart technologies to strengthen the customer experience, mitigate risks and foster business resilience.
- Health Insurance. The application of technology would also reduce legal risks and strengthen the reputation of insurers. It would also be instrumental in reducing bias and detecting anomalies, ensuring fairness of underwriting and accuracy of claims.
However, all the reports come to the same conclusion, and that is that Artificial Intelligence must pursue a single purpose: to reinforce efficiency and streamline processes. This, of course, supported by robust cybersecurity mechanisms that protect customer confidentiality and consolidate the reputation of firms.
In this application, electronic signatures can become an ally for insurers to sign and send documents. From policies to SEPA mandates, they will be able to electronically manage any documentation they need to sign. Of course, with a focus on creating a great experience and optimizing processes, while keeping confidential information safe thanks to robust security mechanisms.
Data governance and expansion
Data measurement will be a high-value strategy. But what kind of metrics will be analyzed? Those related to customer experience, employee satisfaction and profitability. They will be the indicators of success and will seek to generate long-term value, for which it is necessary to develop advanced and decentralized data architectures, such as data mesh.
Dealing with data will be done in a flexible and scalable way, with a focus on price optimization, fraud detection and transparent segmentation that gives customers confidence.
Conscious ecosystem and responsible leadership
For insurers, the use of ESG reporting could help them in the face of another major challenge: the regulatory framework. In this fast-changing environment, the demands of both investors and consumers for social, environmental and biodiversity transparency are expected to increase.
If we look at this prediction in an analytical way, it could be a victory for sustainability, which is climbing steeply up the lists of issues of major concern in regional, national and international society. In fact, to back up this statement we can turn to the recently published Observatory of Business Competitiveness of the Spanish Chamber of Commerce, focused on business sustainability and, according to which, 89.5% of Spanish companies develop actions in terms of environmental sustainability.
“Spanish companies, aware of their social responsibility, are demonstrating a real commitment to environmental sustainability, implementing strategies that not only reduce their environmental impact, but also generate economic and social value,” says José Luis Bonet, president of the Spanish Chamber.
Investment in sustainable assets, social bonds and resilient supply chains is also expected to grow. We will have to wait and see how the year evolves to see if the market signs up to this initiative.
Personalization and on-demand insurance
On-demand insurance models are gaining popularity in the European market, with the Pay-Per-Use model being one of the main references. If you are not familiar with this term, it is a model in which the beneficiary user (the consumer) pays for using a product or service, instead of buying it. In other words, the consumer pays more or less depending on how he or she uses the service or product.
Digitalization has been the main driver of the evolution from traditional to on-demand insurance, and the convenience offered by this type is overtaking price as a motivator for users. In addition, AI-based hyper-personalization makes it possible to adjust policies in real time based on user behaviors, giving them a more satisfying experience.
Insurance technology solutions
As you have seen, 2025 will be a transformational year for insurers, and those that embrace digital transformation will lead the market. Digitalization and technologies such as electronic signatures are allowing insurers to offer more flexible, efficient and personalized products and services that meet the needs and expectations of consumers.
Viafirma can help you to adapt to this environment. With our digital solutions your clients will be able to sign any documentation quickly, legally and electronically, from any device. Request information today.