Despite economic headwinds, the P&C insurance industry is pursuing a strategy of growth. But to do so in the current macroeconomic environment requires transformative efficiency. In order to meet growth objectives by leveraging digitalization, insurers also must make major investments in data management and governance. The swell of excitement around generative AI promises levels of automated decisioning never before seen in the industry. While getting arms around that particular technology from a compliance and use case perspective is difficult, doing the work on data and system architecture to support it will help insurers achieve their goals to grow efficiently and set up for the next several decades of business.

Celent expects 2025 to be a transformative year in insurance, buoyed by a clarity of purpose around efficiency and growth and with lessons in technology strategy, partnerships, and market dynamics from the past several years of chaos absorbed. Five key trends will define the coming year:

• AI and the Data Imperative
• Laser Focus on Operational Excellence
• Advancing Digital Customer and Agent Experiences
• New Face of Core and Infrastructure
• The Next Wave of Innovation