A recent Forrester report highlights insurers' top business and technology priorities for 2025, including AI adoption and system modernisation.
The report reveals that 77% of insurance industry business and technology professionals expect investment in AI to increase over the next 12 months to enhance customer experience, streamline operations, and improve risk assessment.
Moreover, insurers are also considering modernising core systems to reduce inefficiencies and security vulnerabilities, improve reliability and resilience, enhance IT capabilities to provide a better stakeholder experience and facilitate the adoption of industry clouds.
"AI and system modernisation are not just buzzwords; they are essential for insurers to thrive in today's competitive landscape," said Indranil Bandyopadhyay, principal analyst at Forrester and lead author of the report. "By embracing these technologies, insurers can enhance customer experience, improve operational efficiency, and ensure compliance. Insurers that invest in AI and modernised systems will be better positioned to meet their strategic goals and drive growth."
Priorities for 2025
The report also revealed other priorities, such as revenue growth. 63% of insurance business and technology professionals report that their organisation prioritises acquiring new customers. Half (50%) prioritise retaining current customers, and 42% prioritise upselling/cross-selling products to existing customers.
In terms of improving brand and reputation, respondents report prioritising increasing trust in the organisation/brand (36%), improving the digital brand experience (30%), and increasing investments in their brand and communications programs (27%).
Organisations are also prioritising regulatory compliance by aligning culture and values with compliance priorities (52%), investing in/expanding governance, risk, and compliance (GRC) tech solutions (48%), and investing in/expanding information security tech solutions (45%).
