The Evolution of the Insurance Sector in 2025
The year 2025 is emerging as a landmark period for the insurance industry, marking its first significant growth opportunity since the COVID-19 pandemic. Insurers are now transitioning from traditional underwriting methods to more sophisticated, data-driven decision-making processes. According to recent research by Send Technology Solutions Ltd (Send), this shift encompasses the adoption of artificial intelligence (AI) and the optimization of portfolio management.
The study, conducted in late 2024 and early 2025, involved insights from over 60 industry leaders and experts from carriers, MGAs, and brokers across North America. The findings highlight how carriers are prioritizing analytics and predictive tools to identify emerging risks and tailor their products accordingly. In this new era, data literacy and the ability to convert risk insights into actionable strategies have become pivotal to underwriting success.
AI and Underwriting Efficiency
There is a notable shift from mere AI experimentation to more structured implementations. Insurers are focusing on training employees to utilize AI safely and effectively, integrating AI agents and automated workflows into their operations. This integration is set to play a more prominent role throughout 2025.
Improving underwriting efficiency continues to be a significant focus, with companies striving to allocate the right tasks to the appropriate personnel at the optimal time. A clearer understanding of risk concentration is helping insurers enhance profitability and resource distribution.
Challenges and Industry Pressures
Despite these advancements, legacy systems remain a significant hurdle, impeding efficiency and profitability. Many insurers are still dependent on manual processes, outdated rating models, and Excel-driven workflows, which are inadequate for scaling in today’s dynamic market.
According to Send’s research, 66% of brokers emphasize the need for carriers to expedite submission processing, while 44% call for quicker quote generation. However, inefficiencies persist because many organizations are hesitant to modernize due to concerns about disrupting existing workflows. Those firms that fail to innovate in 2025 risk falling behind their more agile competitors.
Andy Moss, Co-founder and CEO of Send, stated, “This research underscores that underwriting in 2025 will be faster, smarter, and more interconnected than ever before. Firms leveraging data, AI, and portfolio optimization will thrive in this increasingly competitive and evolving market.”
The Road Ahead
Beyond technological transformations, the industry faces challenges from legacy systems, the rapid expansion of the Excess & Surplus (E&S) market, and ongoing talent shortages. As experienced professionals retire, attracting and upskilling talent is crucial to maintaining industry momentum. Sarah Sutton, CMO at Send, added, “The underwriter of the future will be highly data-literate, empowered by technology, and focused on making balanced, informed decisions.”
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