A new report by Forrester reveals that a significant majority of professionals in the insurance sector expect to increase their investments in artificial intelligence (AI) and data management over the next year. Approximately 77% of business and technology leaders in the industry anticipate a rise in AI spending, while 73% plan to increase their investment in data and information management.
The report highlights that AI adoption and system modernisation will be key priorities for insurers in 2025. These efforts are seen as crucial for driving revenue growth, improving brand reputation, and ensuring regulatory compliance.
Revenue growth continues to be a major focus for insurers, with 63% of professionals prioritising customer acquisition. Additionally, 50% are focused on customer retention, and 42% are looking to upsell or cross-sell products to existing clients.
Building and maintaining trust is also a priority, with 36% of respondents making it a top focus. Enhancing digital brand experiences and investing in brand and communication efforts are also on the agenda for 30% and 27% of professionals, respectively.
Regulatory compliance remains a vital concern, with 52% aligning their company culture and values with compliance priorities. Furthermore, 48% are investing in governance, risk, and compliance (GRC) technologies, and 45% are focusing on bolstering information security.
Indranil Bandyopadhyay, principal analyst at Forrester and lead author of the report, emphasised the importance of technology in shaping the future of insurance. According to Bandyopadhyay, embracing AI and modernisation is essential for insurers to enhance customer experience, improve operational efficiency, and ensure regulatory compliance. Companies that invest in these areas, he said, will be better positioned to achieve strategic objectives and foster growth.
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