2025 Insurance Outlook: 3 Major Trends

Originally published by Insurance Thought Leadership on January 9, 2025.

Insurance Thought Leadership published Carpe Data VP of Product for Claims Tom Rasmussen's predictions for the three major trends that will shape the insurance sector in 2025. His analysis focuses on moving beyond experimental AI implementations, addressing the accelerating fraud crisis, and fostering unprecedented collaboration among carriers.

Rasmussen argues that 2025 will mark a shift from AI experimentation to practical deployment. While 77% of insurers launched AI initiatives in 2024, only 5% are positioned to realize tangible benefits. He advocates for automating manual tasks like monitoring claimants' online activity, which can save adjusters at least 15 minutes per claim while maintaining human oversight for critical decisions. "Successful AI adoption isn't about being the most innovative; it's about being innovative in the right ways, " the article states.

On fraud detection, Rasmussen highlights the industry's $300 billion annual problem, worsened by 30% of people under 45 who don't view insurance fraud as a crime. He emphasizes that most fraud stems from neglecting basics rather than sophisticated deepfakes, and recommends automated tools that compile real-time, evidence-based data to inform adjuster decisions.

The third trend centers on what Carpe Data calls "the network effect." Rasmussen envisions carriers joining a trusted partner exchange to share alerts and historical injury information, enabling faster fraud pattern identification across the industry. He expresses optimism that insurers will prioritize shared success over competition in 2025, ultimately reducing costs for consumers.

Read the full article at Insurance Thought Leadership.