5 Trends That Will Shape The Future Of Insurance

Overview

Five trends remain certain to shape the future of insurance, an industry that has undergone a transformation.

Insurers came through the challenges presented by COVID-19 remarkably well.

The industry met its escalating obligations to policyholders, dealt with unprecedented interruptions to its business, went above and beyond for its customers, and proved its own relevance in a time of extreme crisis.

Now is the time to assess where the industry is heading and what long-term changes are needed to address the macroeconomic fallout from COVID-19; environmental, social and governance (ESG) issues; and workforce-related challenges.

Some market players are rethinking their long-term strategies as the notions of trust and societal purpose are playing a greater role in the industry than ever before.

It is against this backdrop, and as a follow-up to our Future of Insurance 2020 report, that we developed our views on insurance in 2025 and beyond.

Our findings highlight five trends that will influence the industry and five imperatives insurers need to consider as they rethink their strategies.

It is an exhilarating and challenging time for an industry that is traditionally risk-averse and slow to change. Now, insurers must harness the momentum they’ve gained to reassess the future and reimagine their place in the world.

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Five Trends Affecting The Future Of Insurance

An ambitious agenda must necessarily start with a thorough understanding of the forces that will likely shape insurers’ growth trajectory—over the next five years and beyond.

Five trends affecting the future of insurance:

1. A widening trust gap in an uncertain world
2. Rapidly evolving customer needs and preferences
3. An increasingly digital and AI-driven world
4. Climate risk and a focus on sustainability
5. Convergence, collaboration and competition

Adaptive Ways To Reimagine Your Business

We have identified five interconnected and mutually reinforcing strategic imperatives for all insurers to consider as they embark on their next phase of growth:

Story and image adapted from pwc