Trends We’re Watching For in 2025
Happy New Year! Now that the celebrations are over and the confetti is all cleaned up, it’s time to get back to the world of property and casualty insurance.
It’s a new year, but is it the same coverage? Remind yourself to check in with your insurance agent annually about your coverage. A lot can change in a year, and it’s better to be safe than sorry!
We can’t predict the future, but we can surely make a few educated guesses on what to expect. Here are the trends and hot topics the property and casualty industry is expecting to face this year.
(A)I, Robot: Artificial intelligence is expected to play a large role in the insurance industry in 2025. More companies are using AI to calculate risk and analyze data that would otherwise be subjected to human error. However, since its introduction, AI has been considered controversial, and the legality of using AI is not something lawmakers nor courts have decided on, and their stance is liable to change. AI technology is far from being perfected, and 2025 is sure to see more AI integration into operations in day-to-day life in the insurance industry.
Digital Warfare: In 2024, cyber-attacks against insurance companies made a splash in local and national headlines. Hackers stole data, there were surges in ransomware attacks, and customer security decreased. Insurance companies are sure to bolster their online defenses to protect sensitive data. A new year is a chance to start fresh, and 2025 will be the year of protection against potential cyber-attacks.
Anyone Feel A Draft?: The Midwest has always had its fair share of severe weather, but the first half of the decade has been trying for insurance companies and customers alike. As Iowans rebuild homes and prepare for the next storm, expect to see more construction companies adopting techniques to weather-proof buildings, which could benefit insurance companies in the future. It may take a few years for insurance companies to see these benefits, but was Rome built in a day?
Taking Risks: Insurance is a risky industry to be in, and more insurance companies are weighing the risks of evolving their practices. 2025 will be a new year in a new world with new policyholders looking over insurance plans, and insurance companies are aware of this. In 2025, prepare to see new and exciting things from insurers as they redefine the property and casualty industry.
We’ve only just started 2025, and it’s already shaping up to be a year to remember for the property and casualty insurance industry!
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