Digital Insurance publishes its latest research, Predictions 2025: What to Expect in the Year Ahead

The report indicates insurance professionals anticipate a favorable landscape with a focus on technology to enhance the customer experience and combat fraud

NEW YORK, Jan. 22, 2025 /PRNewswire/ -- Digital Insurance, Arizent's leading information resource serving senior executives in the insurance sector, publishes its latest research report, Predictions 2025: What to Expect in the Year Ahead. Sponsored by InvoiceCloud, the findings of the survey reveal insurance professionals expect a favorable year with a significant focus on technology that enhances the customer experience and combats fraud. 

With nearly 80% of firms planning to increase technology spending, the stage is set for a wave of innovation that could redefine customer expectations and operational efficiency in the insurance world. Additionally, most firms are investigating how to adopt AI into their business practices and approximately 30% have already implemented this technology in some manner.

Key insights from the report include:

• The biggest opportunities for growth are in customer-facing services like claims management and customer experience, while the top three perceived challenges are inflation, climate change and regulatory uncertainty.
• The dual-edged nature of AI is creating potential for both new efficiencies and new risks, including data privacy and fraud concerns.
• While insurance professionals believe that younger consumers want a more transparent digital experience, many admit they struggle with truly understanding what these customers are looking for.

"Insurers want to understand the needs of all their customers, but are having trouble recognizing how to best serve younger clients," says Janet King, Vice President of Research at Arizent. "Overall, 75% of respondents say their younger customers want or expect a more fully digital experience. As technology automates many aspects of daily life, policyholders expect the same level of transparency and seamlessness in their insurance processes as they see in their online shopping."

However, carriers fear that consumer demand for faster payments could be a key driver in fraud losses in 2025. The 47% who feel it will be a factor cite contributing issues such as paying less attention to payment details or red flags within submissions, the possibility of overpayments or even spending less time reviewing the payments before they are released.

To dive deeper into these findings — including expectations for insurtech investments, fraud losses and top trends impacting insurers over the next three years — download the full report here: https://www.dig-in.com/research-report/predicting-the-future-for-insurance-areas-to-watch-in-2025

Research methodology
The research for this study was conducted by Digital Insurance (an Arizent brand) from October to November 2024. A total of 120 leaders and staff at insurance carriers, agencies and tech firms completed the survey.

About Digital Insurance
Digital Insurance is the essential resource for senior executives leading the digital transformation of the insurance industry. Across events and member forums, original research reports and editorial news and analysis, Digital Insurance examines business-critical topics in technology innovation, data advancements, insurtech market trends and transformation strategies. The brand convenes the community around these ideas and insights so they can understand the real-world impact on their firms and the customers they serve.

About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders Forum, a digital content platform featuring livestream and on-demand formats. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.

About InvoiceCloud
InvoiceCloud provides modern digital payment, customer engagement, and outbound disbursement solutions. The company services more than 3,250 customers across the utility, government, and insurance industries and is a leader in the electronic bill presentment and payment (EBPP) space. InvoiceCloud's SaaS platform enables continuous enhancements to the customer experience resulting in higher digital payment, AutoPay, and paperless adoption rates. By switching to InvoiceCloud, clients can improve customer engagement and satisfaction while lowering costs, accelerating payments, and reducing staff workloads. To learn more, visit www.InvoiceCloud.com.

SOURCE Arizent