Fueled by rapid technological advancements, demographic changes and shifting consumer expectations, the Life & Annuity industry is set for several transformative changes in 2025. Swiss Re forecasts average global real premium growth of 2.6% in 2025 and 2026, with life insurance projected to expand globally by 3% annually— more than twice the pace of the past decade. In this evolving landscape, staying ahead of the curve is not just a competitive advantage; it’s a necessity for survival.
The integration of generative AI (gen AI) and the growing reliance on digital data are key for a future where underwriting processes are more efficient. Additionally, insurers’ increased use of technology to enhance consumer engagement will aim to foster stronger relationships and improve customer satisfaction.
These underwriting predictions highlight the trends that life insurers must embrace to thrive in the coming years.
1. Generative AI will be pivotal in the underwriting process
The scaling of AI and machine learning is set to revolutionize the accuracy of risk assessment and the speed of underwriting. It is telling that industry analyst Gartner notes life insurers modernizing their underwriting processes have shifted their focus from automation and rule engines to predictive analytics, AI, and third-party data for risk scoring. Incorporating generative AI in automation offerings allows for intelligent ingestion and the extraction of information from all types of structured and unstructured data feeds, while also augmenting decision-making processes. This further streamlines underwriting and claims procedures. Leading platform providers like the Accenture Life Insurance & Annuity Platform (ALIP) are already offering embedded generative AI underwriting solutions, clearly positioning 2025 as the year of implementation.
2. Customer and agent interactions will be boosted by generative AI
The growth of digital-native consumers is compelling insurers to invest in advanced digital platforms that offer real-time feedback, personalized recommendations, and educational information. In last year’s predictions, I highlighted how gen AI-empowered customer centricity will close the gap even further between carriers, agents, and customers, leading to more personalized product offerings and services. We foresee the increased use of gen AI-powered virtual assistants to simplify customer interactions, ultimately boosting satisfaction and loyalty. While these solutions have primarily been focused on contact center operations, we are now seeing similar technology being applied to improve, for example, internal communication between field-level agents and back-office underwriters. Additionally, this shift opens new paths for underwriters to manage requirements orders and take actions more efficiently.
3. Seamless integration of vendor data will become the norm
The evolution of underwriting will necessitate a comprehensive vendor strategy, encompassing a spectrum of technologies such as AI, predictive models, and automation throughout the underwriting process. With more than 80 vendors contributing to the shift towards predictive and comparative models, insurers must concentrate on bolstering these capabilities. The next couple of years will witness substantial strides in process automation, yet the critical hurdles of automating intricate decisions, mitigating AI bias, and integrating with existing systems will persist. CIOs will be pivotal in supporting underwriters, measuring the impact of automation, documenting technology, and enhancing user proficiency.
These predictions reflect the dynamic shifts within the Life & Annuity industry, fueled by technological innovation, evolving consumer expectations, and the pursuit of enhanced operational efficiency. Insurers who embrace these underwriting capabilities are likely to find themselves well-placed for success in the ever-changing market milieu.
This is not a long-term forecast—the capabilities are available today. Please don’t hesitate to reach out, and let’s discuss implementing initiatives tailored to your reinvention journey and business needs.
