Gen AI and IoT: Insurtech predictions for 2025

Originally published by Digital Insurance on December 18, 2024.

Digital Insurance surveyed insurance and technology executives to gather their predictions for insurtech developments in 2025. The responses highlighted generative AI adoption, Internet of Things integration, and persistent challenges around user experience and regulatory compliance.

Several executives anticipated widespread AI deployment across underwriting, claims, and customer service. Tom Rasmussen, VP of product for claims at Carpe Data, noted that "the most successful insurers will dial it back to adopt a more balanced, strategic approach, zeroing in on areas of the business that deliver the highest ROI." He emphasized that successful AI adoption requires intentionality, balancing innovation with realistic business value by automating manual tasks while maintaining human oversight for larger decisions.

Other industry leaders focused on connected vehicle data and IoT applications. Driver Technologies CEO Rashid Galadanci predicted that as third-party apps become more widespread and users opt in to share data, carriers will develop usage-based insurance programs centered on connected vehicles. Meanwhile, ACORD CEO Bill Pieroni observed that IoT has become well-established among leading carriers globally, warning of a widening performance gap between those leveraging the technology and their competitors.

Several executives highlighted the industry's digital capabilities gap. Capgemini's Adam Denninger described insurance as lagging well behind customer and distribution partner expectations, predicting that digital modernization will be a leading technology trend throughout 2025.

Read the full article at Digital Insurance.