The living and annuity industry will undergo a variety of transformative changes in 2025 due to rapid advances in technology, demographic changes and the transfer of consumer expectations. It’s an increase of 3% per year, more than double the past decade. In this ever-evolving landscape, staying ahead is not just a competitive advantage. This is a necessary condition for survival.
Generating AI (Gen AI) and the integration of increasing dependence on digital data is key to a more efficient future for the future underwriting process. In addition, the increased use of technologies that enhance consumer engagement by insurers will aim to build stronger relationships and improve customer satisfaction.
These underwriting forecasts highlight the trend that life insurance companies must thrive in the coming years.
1. Generating AI is crucial in the underwriting process
Scaling of AI and machine learning is designed to revolutionize the accuracy and underwriting speed of risk assessments. Industry analyst Gartner said that modern underwriting processes Life insurers, whose modern underwriting processes, has shifted their focus from automation and rule engines to predictive analytics, AI and third-party data for risk scoring. Incorporating generated AI into automation products can extract smart ingestion from a variety of structured and unstructured data feeds, and extract information while also adding decision-making processes. This further simplifies the underwriting and claiming procedures. Leading platform providers such as Accenture Life Insurance and Annuity Platform (ALIP) have already offered embedded generative AI underwriting solutions, apparently positioning 2025 as an implementation year.
2. Customer-agent interactions will be generated by AI enhancements
The growth of digital local consumers is forcing insurers to invest in advanced digital platforms that provide real-time feedback, personalized advice and educational information. In my forecast last year, I highlighted how AI-GEN EMEMEPARICENTIC can further narrow the gap between operators, agents and customers, resulting in more personalized products and services. We foresee the increasing use of AI-powered virtual assistants to simplify customer interactions, ultimately increasing satisfaction and loyalty. Although these solutions focus primarily on contact center operations, we are now seeing similar technologies for improvements, such as internal communications between field-level agents and backend underwriters. Furthermore, this transformation opens new avenues for underwriters to manage demand orders and act more effectively.
3. Seamless integration of vendor data will become the norm
The evolution of underwriting will require a comprehensive supplier strategy that includes a range of technologies throughout the underwriting process, such as AI, predictive models and automation. More than 80 suppliers have facilitated the transition to forecasting and comparative models, and insurance companies must focus on strengthening these capabilities. The next few years will see great progress in process automation, but key obstacles to automating complex decisions, mitigating AI bias, and integrating with existing systems will continue. CIOs will be crucial in supporting underwriters, measuring automation, documenting technology and improving user capabilities.
These forecasts reflect dynamic shifts within the life and annuity industry, driven by technological innovation, growing consumer expectations and the drive toward improving operational efficiency. Insurers with these underwriting capabilities are likely to succeed in a changing market environment.
This is not a long-term prediction, and these features are available today. Please do not hesitate to let us discuss implementation plans tailored to your reinvention journey and business needs.
