Falling claims inflation, improved risk management and above-average interest rates will have a positive impact on the financial situation of the insurance sector, emphasises the Sollers Prediction Report 2025 ‘Window of Opportunity’. To increase the level of automation, insurers will intensify their efforts to utilise AI. There will be a strong focus on data management and cloud to support their AI ambitions. Pricing technology will gain significant traction.
The year 2025 will be characterised by stronger economic growth, lower inflation, and attractive bond yields in most regions, underlines the Sollers Prediction Report 2025. Losses from natural disasters may be less frequent as La Niña dampens the momentum of global warming and heavy rainfall is likely to decrease in many parts of the world. The report is based on analyses of the labour market, financial reports and Sollers’ internal sources, as well as data published by the IMF and WMO, among others. In a relatively healthy economic environment, insurance companies will invest in data management and cloud to improve business intelligence and automation functions in claims management, underwriting and pricing. Artificial intelligence has become a commonplace topic in the insurance industry, and there is hardly an insurance company that is not preparing for it, the report emphasises.
“Insurance companies will continue to deal with the challenges of claims inflation. With greater financial flexibility, they will turn to technology to help them become more efficient,” underlines Martin Seibold, Partner at Sollers Consulting. “The pioneers in the insurance industry have started to use AI to support employees through automation; but there is still a long way to go to fully exploit the benefits.”
Despite delays in the implementation of Blueprint 2, further digitalisation and advances in market efficiency will help Lloyd’s and the London Company Market remain an attractive insurance hub. Key areas that insurers are focussing on include underwriting, claims, reinsurance, data and cloud. The use of algorithms, analytics, machine learning and AI will increase.
“London market and specialty insurers continue to make progress in digitising and automating their business processes,” comments Jakub Wróblewski, UK London Market Lead at Sollers. “A significant part of the competitive advantage is due to the unique underwriting expertise supported by superior data management capabilities and data governance.”
Based on regulatory requirements, UK general insurers will increasingly focus on security, pricing and customer relationships. Adopting appropriate data strategies and ensuring compatibility between organisations with different core solutions will be critical to gain a 360-degree customer view. Utilising data will also improve pricing, underwriting and claims processes.
“Insurers in the UK need to find a way to ensure that digital channels are as trustworthy and informative as traditional call centres, with the added benefit of gaining real-time insights into ongoing processes,” says Aleksander Czarnołęski, Head of UK GI at Sollers.
The greatest challenges in 2025 will arise from increasing political and regulatory pressure, which makes it more difficult for the insurance industry to adapt and comply. It seems likely that there will be delays in the implementation of EU’s DORA regulation. The Sollers Prediction Report covers the 16 biggest markets with Sollers presence across North America, Europe, and Asia Pacific.
The Sollers Prediction Report 2025 “Window of Opportunity” can be downloaded here: