Leading vs Lagging: Insurance Trends to Watch in 2025

What 2025 Means for Insurers Who Want to Lead, Not Lag

Insurance isn’t just adapting — it’s transforming. In 2025, an industry known for steady, cautious evolution will take giant leaps, embracing innovative technology, responding to market shifts, and reshaping the customer experience. 

At EIS, we’ve identified the trends that will define the year ahead, from the rise of embedded insurance to the adaptation of artificial intelligence and beyond. These aren’t just trends — they’re imperatives for insurers looking to lead, not lag, in a rapidly shifting landscape.

Trend 1: Winning at Distribution with Digital Ecosystems

The days of relying on traditional channels like brokers and agents alone are over. With $3 trillion in potential market value, embedded insurance and self-service portals are reshaping distribution. But this isn’t about replacing human touchpoints; it’s about empowering them. Carriers that embrace omnichannel ecosystems will ensure seamless transitions between digital tools and personal interactions, driving customer satisfaction and operational efficiency.

Trend 2: AI Tightrope — Balancing Ambition and Governance

From fraud detection to personalized product recommendations, artificial intelligence will be a cornerstone of 2025 strategies. Yet, insurers must tread carefully. AI’s promise depends on responsible practices and accurate, real-time data foundations. Success stories like a leading insurer using generative AI for personalized call-center interactions in 2024 show the potential — but without proper oversight, the risks loom large.

Trend 3: Compliance as an Opportunity

Regulations like the EU’s Digital Operational Resilience Act (DORA) may seem daunting, but they offer opportunities to build customer trust and drive innovation. Carriers leveraging adaptive core systems can respond quickly to compliance changes, turning mandates into opportunties to stand out to their customer base by protecting data and improving customer communications.

Trend 4: Facing Down Environmental Risks

As extreme weather intensifies, insurers must evolve their approach to risk. Instead of pulling out of high-risk markets, carriers can invest in predictive technology and prevention tools — like sending out property protection alerts on upcoming storms and bundling water-level sensors with policies — to protect customers and offset claims.

Trend 5: Life Insurance Gets a Breath of Fresh Air

With millennials and Gen Z driving the workforce, life insurance needs a makeover. These tech-savvy generations prioritize income protection over traditional products, and life insurers are seeing their market penetration decrease. Carriers embracing modular platforms can integrate life insurance into digital touchpoints and create offers tailored to younger customers’ needs and preferences.

To Shine in 2025, You Need to be Agile

These trends share one undeniable truth: the need for agility. 

Whether it’s modernizing distribution, leveraging AI, or adapting to new regulations, success in 2025 depends on embracing agile, ready-to-adapt technology that drives customer-centricity and operational efficiency.

Curious to learn more? 

Dive deeper into these insights in our whitepaper, "EIS 2025 Outlook: Trends That Will Shape Insurance." It’ll help you pinpoint where you can work to thrive in one of insurance’s most transformative years to date.

EIS is empowering insurers to take the leap into the future with modular, cloud-native solutions built for ambition. Ready to redefine your potential? Visit us at eisgroup.com.