IDC FutureScape: Worldwide Insurance 2025 Top 10 Predictions

IDC FutureScape Figure

• Figure: IDC FutureScape: Worldwide Insurance 2025 Top 10 Predictions

Executive Summary

IDC FutureScape Predictions

• Summary of External Drivers

• Predictions: Impact on Technology Buyers

• Prediction 1: By 2025, 60% of global commercial P&C insurers will use comprehensive underwriting platforms with AI-driven ESG scoring tools to enhance risk assessment and pricing.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 2: By 2026, 30% of insurers will achieve over 80% success rate on their GenAI initiatives by appointing an AI orchestrator to break down internal silos.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 3: In 2026, half of insurer-insured interactions will occur in real time through digital self-service tools, boosting conversational engagement across channels and enhancing customer satisfaction.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 4: By 2027, 65% of global insurers will adopt AI-driven legacy code modernization and green-certified cloud datacenters, greatly enhancing energy efficiency and advancing sustainable IT practices.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 5: By 2027, 40% of health insureds will enroll in multiyear reimbursement models, causing the need for long-term data infrastructure investment to support linking payment to longitudinal care models.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 6: By 2027, insurers that integrate AI with FinOps will be able to consistently realize 25% more value from their IT investments, driven by informed automation at scale.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 7: By 2028, 70% of global insurers will revamp their data intelligence architectures through strategic partnerships with IT service providers, resulting in a 30% rise in successful AI deployments.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 8: By 2028, 90% of AI vendors and 50% of G2000 firms developing their own AI solutions will use insurance-backed performance guarantees, driving 1 in 4 P&C insurers to enter the market.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 9: By 2029, 70% of the insurance workforce will master human-machine collaboration, emphasizing personalized learning, critical thinking, and communication, boosting efficiency and customer satisfaction.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

• Prediction 10: By 2029, edge connectivity will boost market risk transparency, leading to over 35% of insurance-linked securities being IoT-powered and prompting insurers to improve capital adequacy and resilience.

• Associated Drivers

• IT Impact

• Business Impact

• Guidance

Advice for Technology Buyers

External Drivers: Detail

• AI-Driven Business Models — Moving From AI Experimentation to Monetization

• The Drive to Automate — Toward a Data-Driven Future

• Future Proofing Against Environmental Risks — ESG Operationalization and Risk Management

• AI-Driven Workplace Transformation — Building Tomorrow's Workforce Today

• Regulatory Flux — Navigating Compliance Challenges in a Shifting Policy Landscape

• Battling Against Technical Debt — Overcoming Hurdles to IT Modernization

• Customer Experience Squared — Consumer and Citizen Expectations for Digital Services

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