The Insurance Industry’s Evolution in 2025

The year 2025 marks a significant milestone for the insurance sector, as it represents the first substantial opportunity for growth since the COVID-19 pandemic. This shift is driven by insurers transitioning from traditional underwriting practices to data-driven decision-making, the adoption of artificial intelligence (AI), and enhanced portfolio management. Recent research conducted by Send Technology Solutions Ltd (Send) highlights these transformative changes.

The study, carried out in late 2024 and early 2025, involved insights from over 60 insurance leaders, specialists, and practitioners from carriers, MGAs, and brokers across the U.S. and Canada. According to Send’s research, carriers are increasingly prioritizing analytics and predictive tools to identify emerging risks and align products accordingly. This shift underscores the importance of data literacy and the ability to translate risk insights into actionable strategies, which are now pivotal to achieving underwriting success.

Moreover, the research reveals a transition from AI experimentation to structured implementation, with a focus on ensuring employees are trained to utilize AI tools both safely and effectively. In 2025, AI agents and automated workflows are expected to take on a more prominent role within the industry.

Prioritizing Efficiency and Overcoming Challenges

Underwriting efficiency remains a top priority, with firms aiming to ensure that the right tasks are handled by the right people at the right time. A more profound understanding of risk concentration is also enabling insurers to enhance profitability and optimize resource allocation. Despite these advancements, legacy systems continue to pose the biggest obstacles to the industry, hindering efficiency and profitability. Many insurers still rely on manual processes, outdated rating models, and Excel-based workflows, all of which struggle to keep pace with today’s rapidly evolving market.

The research indicates that 66% of brokers believe carriers need to process submissions more quickly, while 44% demand faster quotes. However, inefficiencies persist, as numerous organizations remain hesitant to modernize due to concerns about disrupting existing workflows. Companies that fail to act in 2025 risk falling behind more agile competitors.

Andy Moss, Co-founder and CEO of Send, stated, “This research emphasizes that underwriting in 2025 will be faster, smarter, and more interconnected than ever before. Companies that embrace data, AI, and portfolio optimization will thrive in an increasingly competitive and evolving market.”

Beyond technological advancements, insurers are also grappling with legacy system challenges, the rapid growth of the Excess & Surplus (E&S) market, and ongoing talent shortages. As seasoned professionals retire, attracting and upskilling new talent is becoming crucial to maintaining industry momentum.

Sarah Sutton, CMO at Send, added, “The underwriter of the future is highly data-literate, empowered by technology, and focused on making balanced, informed decisions.”