6 Insurtech Predictions for 2025 and Beyond

The insurance industry has been evolving through digital transformation for some time now, and it’s great to be a part of this momentum at Ivans. From harnessing real-time data to the operational power of AI, let's explore some of Ivans’ insurtech predictions for 2025 based on current trends.

1. The market will increasingly demand real-time data and insights to increase data-driven decision-making.
   
   The shift towards instant insights via API calls is empowering insurance companies to make smarter, more agile decisions. This emphasis on real-time data across the insurance sector is paving the way for more data-driven decisions, leading to enhanced operational efficiency and profitability. Industry insights are becoming more accessible thanks to the latest developments in insurtech, allowing carriers to understand their business like never before, and I expect this will continue to be the case.
   
   

2. The adoption of digital processes will increase across all commercial lines segments.
   
   As digitization evolves across all commercial lines, the insurance landscape is seeing a shift. Technology isn’t just supporting small commercial business anymore; it’s enhancing the submission, quoting, and binding processes for all lines, making them more transparent and intelligent by minimizing manual steps. Insurtech innovations powered by tech like artificial intelligence and machine learning are transforming underwriting processes, claims processing, and risk assessment, driving smarter, faster, and more effective outcomes.
   
   

3. Agency consolidations will continue to increase, with the big brokers becoming even bigger.
   
   The independent agency system is experiencing a wave of consolidation like never before. According to the BIG “I,” there has been a 250% increase in reported merger & acquisition transactions in the past decade. Market leaders like Acrisure, Arthur J. Gallagher, and Marsh McLennan are growing bigger and stronger, driven by strategic mergers and acquisitions. This trend is solidifying new business models and raising the stakes for carriers. These consolidations are not merely reshaping the insurance industry but also emphasizing the need for enhanced customer experience and retention through improved digital interfaces and mobile apps.
   
   

4. We’ll continue seeing the industry respond to volatile market conditions.
   
   Fueled by natural disasters like California wildfires and hurricanes in the Carolinas, volatility in market conditions is bringing new challenges. Despite these conditions and challenges, thought leaders like McKinsey predict an opportunity for carriers to continue to grow, finding profitable growth across lines of business. This is an opportunity to explore insurtech solutions, such as IoT, usage-based insurance models, data insights, telematics and predictive analytics, to help carriers navigate these conditions, improve risk profiles, and optimize premiums and pricing strategies.
   
   

5. Carriers will continue to become more open to experimentation with tech.
   
   Carriers are boldly stepping into innovative territories. By forming partnerships with insurtechs, investing in startup ventures, and fostering dedicated innovation teams, they are seeking to transform challenges into opportunities. This era of experimentation is marked by the adoption of modern technologies such as blockchain technology, smart contracts, wearables, and Agentic AI, which are predicted to revolutionize insurance operations, customer engagement, and satisfaction.
   
   

6. AI will move past the phase of research and awareness to truly use AI to enhance workflows.
   
   AI is here, reshaping insurance processes like underwriting and claims with precision and efficiency. The era of research has transitioned into practical application, and AI, combined with automation, is becoming an integral part of business operations. With AI-driven algorithms and real-time insights, insurance companies are just starting to enhance their analytic capabilities, streamlining workflows and delivering superior customer-centric experiences. We expect AI will continue to be a part of our processes each year.
   
   

Get More Insights in Our Agency-Carrier Trend Report

These are just a few of our predictions  at Ivans based on the latest trends. Want to find out more agency-carrier connectivity trends? Check out our latest report based on responses from 1,500 agencies, carriers and MGAs on what they value and what needs improvement in our Agency Carrier Connectivity Trends report.