Supported by rapid technological advancements, Changes in demographics And changing consumer expectations, the Life & Annuity industry is set for some transformative changes in 2025. Switzerland The average global real premium growth rate for 2025 and 2026 is 2.6%, with life insurance projected to expand by 3% per year. This is more than twice the number in the past decade. In this evolving landscape, going ahead of the curve is not just a competitive advantage. It is the need for survival.
The integration of Generator AI (GEN AI) and increasing dependence on digital data is key to a more efficient future in which the underwriting process is key. Furthermore, the increased use of technology for insurers to enhance consumer engagement is aimed at promoting stronger relationships and improving customer satisfaction.
These underwriting forecasts highlight trends that life insurance companies must embrace in order to flourish in the coming years.
1. Generation AI is extremely important in the underwriting process
Scaling of AI and machine learning is set to revolutionize the accuracy of risk assessment and speed of underwriting. I’ve told industry analysts Gartner The memo for Life Insurance Companies to Modernize Underwriting Process shifted its focus from the automation and rules engines for risk scoring to predictive analytics, AI, and third-party data. Incorporating generated AI into automation is permitted Intelligent intake It also enhances the extraction of information from all kinds of structured, structured and unstructured data feeds and the decision-making process. This further streamlines the underwriting and calls for steps. Major Platform Providers like Accenture Life Insurance & Annuity Platform (ALIP) already offers embedded generation AI underwriting solutions, clearly placing 2025 as the year of implementation.
2. Customer-agent interactions are driven by generation AI
The growth of digital native consumers is forcing insurers to invest in sophisticated digital platforms that provide real-time feedback, personalized recommendations, and educational information. Last year’s forecastI highlighted how Gen AI-Empowered Customer Centricity can further fill the gap between carriers, agents and customers, leading to more personalized product delivery and service. We anticipate that increasing use of virtual assistants with GEN AI will simplify customer interactions and ultimately increase satisfaction and loyalty. These solutions focus primarily on contact center operations, but similar technologies have been applied to improve internal communication between field-level agents and back-office underwriters, for example. I understand. Additionally, this shift opens new paths for underwriters to manage requirements orders and take actions more efficiently.
3. Seamless integration of vendor data becomes standard
The evolution of underwriting requires a comprehensive vendor strategy that includes a variety of technologies, such as AI, predictive models, and automation throughout the underwriting process. With over 80 vendors contributing to a shift towards predictive and comparative models, insurers need to focus on strengthening these capabilities. The next few years will witness significant advances in process automation, but the key hurdles of automating complex decisions, mitigating AI bias and integrating with existing systems will persist. CIOs are crucial in supporting underwriters, measuring the impact of automation, documenting technology and increasing user proficiency.
These forecasts reflect dynamic changes in the life and pension industry, supported by technological innovation, the evolution of consumer expectations, and the pursuit of increased operational efficiencies. Insurance companies that accept these underwriting capabilities may be well placed to succeed in a ever-changing market environment.
This is not a long-term forecast. Features are available today. Feel free to reach out Let’s discuss The journey of reinvention and implementation of initiatives tailored to business needs.
