The commercial property insurance market continues to soften, with rate reductions accelerating across many sectors. Yet, despite this easing, overall premium spending remains higher than pre-2019 levels. For insureds, this presents a unique opportunity and one that requires thoughtful action.

We're advising clients to use this window to restore lost coverages, reassess deductibles, and rethink how they structure their programs. These conditions won't last forever, and policyholders that act now stand to regain both value and flexibility.

From Fatigue to Relief

This current soft market follows years of steady rate increases that began in late 2017 and peaked around 2020. Clients have experienced "rate fatigue" from successive, steep premium increases, which have been exacerbated by rising rebuilding costs during and after the pandemic. Now, as rates decline, many are seeing meaningful premium relief on their property renewals.

So, what's driving the change? In short: capacity. There's an abundance of it. Incumbent carriers are expanding line sizes and aggressively targeting new business. While most new entrants are in the E&S space, where growth has been significant, even smaller players collectively add pressure by creating more competition on individual programs.

Legacy markets, particularly in the U.S., London and Bermuda, are stretching up or down program layers and leveraging facultative reinsurance to gain traction. That's reshaping pricing, risk-sharing strategies, and overall program structure.

Take Back What Was Lost

During the hard market, many insureds were forced to accept terms that reduced coverage, raised deductibles, and increased non-concurrency across shared and layered programs just to get deals done. Now is the time to reverse that.

Clients should be challenging their brokers to leave no stone unturned. A pre-renewal strategy session is essential to prioritize coverages and establish a smart approach to market engagement. Rebuilding programs means more than just rate reduction. It's about reclaiming terms and removing restrictive language that crept in over the past few years.

The New Program Design

One of the most notable shifts we're seeing is in program structure. Larger line sizes and more streamlined layering are helping eliminate expensive, opportunistic capacity. This directly improves rates and simplifies negotiation.

Captive usage is also on the rise. As clients look to gain more control and mitigate volatility, captives offer a path to retain risk strategically. In parallel, there's a renewed interest in long-term agreements, which can provide premium stability over multiple years and reduce annual pricing uncertainty. We're also seeing increased interest in parametric solutions, which complement traditional insurance placements.

What's Next: Opportunities and Uncertainties

Despite the current optimism, the market remains fragile. Several variables could quickly shift conditions. With the right broker and a strategic approach, insureds can regain lost ground, improve coverage, and build programs that are resilient, cost-effective, and better aligned to their evolving risk profile.

The life insurance industry has long grappled with closing the insurance gap by reaching underserved populations – those who have traditionally not owned life insurance, particularly in the middle market.

As insurers explore new approaches to access these previously untapped segments, they face a hurdle: a lack of familiarity with these markets. Reinsurance Group of America (RGA) conducted an analysis to help address this shortcoming.

Beyond underwriting: Market matters

RGA has long understood that there is more to mortality outcomes than underwriting alone can explain. To demonstrate this, we compared fully insured lives across various carriers to determine the degree to which mortality could vary based on factors other than underwriting. The analysis focused on the best preferred class available at similar ages, policy amounts, and product types, and limited to carriers that had very similar preferred criteria. In other words, we examined policies with the same level of underwriting rigor. The results showed the differential across carriers ranged as high as 1.3 times.

Two lessons emerged:

1. Insured mortality outcomes are driven by more than the traditional questions and data collected.
2. All risk cannot be underwritten away in an underlying market, as there are other considerations (i.e., who is buying it, who is selling it, etc.).

Figure 1: Term mortality by company with similar best class underwriting

Given this disparity can exist for business that is known and understood – this type of insurance has been sold by the industry for nearly three decades – it piques the interest in results that may exist for less familiar markets.

Three questions arise:

1. Is there a difference in mortality between the historical insured population and the prospective insured population?
2. If yes, how big is the difference?
3. Can medical underwriting resolve the issue?

(Definitions: Historical insureds are those identified as having had at least one policy reinsured with RGA at any time between 2007 and 2022. Prospective insureds are those identified as not having had any policies reinsured with RGA at any time between 2007 and 2022.)

The mortality divide

Historically, there have been material mortality differences between the insured population and the general population. The insured population has consistently demonstrated better mortality outcomes. This leaves the uninsured portion of the general population – the prospective insureds – as a group with potentially higher mortality risk.

To explore these differences, RGA conducted a comprehensive study comparing mortality outcomes between the historical insured population and the prospective insured population. The study leveraged unique data that allowed for the examination of mortality outcomes and risk profiles across a broad spectrum of the U.S. population.

The study's findings revealed significant mortality differences between the two. When compared with fully underwritten (FUW) policies, the prospective insured population showed mortality rates more than 2.5 times higher. Even when compared with simplified issue policies, the prospective insureds still exhibited about 50% higher mortality.

Interestingly, final expense insurance – typically associated with higher-risk individuals and simplified underwriting that allows for more impairments – was the only segment where the prospective insured population showed lower mortality, at about half the rate of the insured group. These stark contrasts underscore the complexity of the mortality landscape when considering underserved markets.

Figure 2: Prospective insured mortality relative to historical insured by underwriting category

What can medical underwriting accomplish?

Rigorous medical underwriting could presumably bridge this mortality gap; however, the study's results suggest otherwise. After applying the same risk assessment standards using a proxy for medical underwriting (i.e., prescription and medical claims history) to both populations, mortality differences persisted between the prospective and historical insured populations.

For fully underwritten policies, even when comparing only the lowest-risk quintiles of both populations, the mortality ratio remained materially greater than one. This suggests there may be inherent differences between these populations that extend beyond what traditional medical underwriting can capture.

The simplified issue category showed the most similarity between historical insured and prospective insured populations. As underwriting restrictions tightened, the mortality ratio crossed below the 1.0 threshold for the best risk quintiles, indicating prospective insureds might be well-suited for simplified issue products in today's market. Also, the prospective insured population consistently had lower mortality outcomes than final expense insureds.

Figure 3: Prospective insured mortality relative to historical insured by risk profile

Age and duration

The study also revealed interesting trends when examining mortality differences by age and policy duration. For fully underwritten policies, excluding the highest-risk individuals, younger ages showed a more significant mortality ratio between historical insureds and prospective populations. This finding is particularly noteworthy as younger individuals are often a target demographic when attempting to enter the middle market.

Figure 4: Prospective insured mortality relative to FUW and AUW, quintiles 1-4

Duration analysis showed that a historical insured policy assessed more than 20 years ago had a better mortality rate – well above 1.0 – than the prospective insured population. This persistent difference suggests that factors beyond underwriting continue to have a long-lasting influence on mortality outcomes.

Figure 5: Prospective insured mortality relative to FUW and AUW, quintiles 1-4

Strategies for responsible market expansion

These findings highlight the challenges of expanding into underserved markets and underscore the need for innovative approaches to responsibly reduce the insurance gap. However, this is not to suggest that this market and its challenges should be avoided.

The insurance industry must continue to unlock the full potential of digital evidence. As individuals' digital footprints grow, leveraging electronic health records and other unstructured data sources could pave the way for more effective and efficient underwriting. The shift toward digital applications also presents an opportunity to balance customer experience with accurate disclosures, potentially through the implementation of behavioral science principles.

It is crucial for insurers to have a deep understanding of not only who they are targeting but also who is seeking them. This may involve developing effective lead generation strategies and partnering with quality third-party providers, especially when entering the direct-to-consumer market. Starting with familiar or well-defined markets, such as affinity groups, could provide a valuable entry point into underserved segments.

For those underserved markets (and all segments), it is essential for the industry to ensure it is fulfilling a true insurance need with its product offerings, not merely seizing an opportunity. This may involve creating offerings that fill the gap between simplified issue and fully underwritten products, both in terms of underwriting rigor and pricing.

Insurers should strive to manage price sensitivity, striking a balance between adequate pricing for the risk and affordability for the target market. For example, individuals, particularly those who are younger, may have an appetite for paying a higher cost for a more palatable experience along with a product that is more understandable.

Conclusion: A cautious but committed approach

RGA's study provides valuable insights into the mortality considerations for underserved markets. While it reveals significant challenges, including higher mortality outcomes and limitations of traditional underwriting methods, it also provides a path toward innovative solutions.

As the insurance industry strives to close the protection gap, it must be cognizant of the realities of mortality differences in untapped markets. This means developing new underwriting techniques, leveraging advanced data analytics, and creating products tailored to the needs and risk profiles of underserved populations.

By approaching this challenge with a combination of caution and commitment, insurers can navigate the unknown territories of underserved markets, expanding their reach while maintaining responsible risk management practices. RGA is excited to work alongside carriers to provide solutions that will make financial protection accessible to all.

For insurance providers, collaboration tools are no longer just a support function— they're a mission-critical capability. Whether managing underwriting decisions, coordinating claims, responding to regulatory inquiries, investigating potential fraud, or responding to cyber incidents, insurers must collaborate in real time, across teams, and with full confidence in data security and compliance.

However, many organizations rely on outdated systems or off-the-shelf communication tools that were never designed for the complexity and regulatory rigor of the insurance industry. This results in operational silos, inefficiencies, and increased exposure to compliance risks.

A Perfect Storm of Compliance, Complexity, and Communication Gaps

As the insurance industry accelerates its digital transformation, the need for streamlined, coordinated collaboration has become more urgent – and more complicated. Insurers must find ways to bridge teams and geographies while preserving centralized oversight, transparency, and trust in how information is shared.

Handling vast volumes of sensitive data and adhering to regulations like FINRA, HIPAA, and GDPR requires more than just reliable messaging; it demands secure platforms purpose-built for transparency, data governance, and compliance. Yet many off-the-shelf tools were not built with the specific needs of regulated industries in mind.

These platforms may support quick chats and ad hoc meetings, but they fall short when it comes to protracted, multi-stakeholder collaboration. Conversations can become fragmented, key decisions get buried, and critical actions are missed, all of which undermine response times and create compliance gaps. Retrieving information for audits or litigation becomes time-consuming and unreliable.

Compounding the issue is the challenge of secure integration. Insurers need real-time access to critical data – capabilities that off-the-shelf platforms rarely deliver.

Meanwhile, insurers' tools remain attractive targets for cyber attackers. Persistent login sessions, high user volumes, and weak security controls expose insurers to threats such as phishing, malware, data breaches, and credential theft.

Best Practices for Secure and Scalable Collaboration

To meet the demands of today's insurance industry, collaboration platforms must go beyond messaging. They must break down silos, facilitate secure real-time decision making, ensure audit readiness, and boost operational efficiencies.

Below are six things to consider when evaluating secure, flexible collaboration solutions for insurance environments.

1. Self-sovereign secure data management

To reduce risk, any platform must be built with enterprise-grade security, privacy, and compliance architecture and practices.

Key questions to ask:

• Is data always stored in environments under your direct control, whether on-premises or in a private cloud? This is essential for maintaining data sovereignty, especially when handling sensitive customer or financial data.
• Does the provider enable compliance with GDPR, HIPAA, and FINRA standards?
• Can data be easily exported for compliance purposes?
• What identity and access controls are in place? Look for multi-factor authentication, session duration configuration, role-based access control, SAML-based single sign-on, enterprise mobile management, and more.
• Is data encrypted at rest and in transit?

2. Integrated capabilities

To prevent information silos and inefficiencies, the right platform must combine messaging, task management, and documentation into a single platform. This eliminates the need for toggling between tools and enables faster, more consistent execution of critical processes such as incident response or claims investigations.

3. Dedicated channels for organized, auditable messages

Projects like underwriting, fraud detection, or regulatory reviews often span weeks or months. The ability to capture who did what, when, and why – across every conversation and workflow – is vital.

Rather than a single confusing and fractured thread for collaboration, look for a collaboration platform that offers channels or core communication spaces where team members can collaborate, share messages, and work together. This makes collaboration more streamlined and organized. These channels can be open to everyone, restricted to invited members only, allow one-on-one conversations, or span multiple teams.

4. Automated workflows and playbooks

Consider the automation workflows and out-of-the-box playbooks the vendor offers. These features can greatly improve efficiency, ensure consistent execution of critical tasks, reduce risk, and speed service delivery.

Playbooks make it easy to streamline and accelerate routine tasks such as claims processing, customer onboarding, policy renewals, compliance checks, and incident response.

For example, a top three bank implemented an out-of-the-box security playbook to support its incident response efforts. By following a structured process, the team was able to respond more quickly and effectively, reducing their response time from 20 minutes to just two.

5. Audit-ready architecture

Collaboration platforms should offer straightforward, reliable tools for generating compliance reports on user activity and communication. Features like audit logging are essential for capturing detailed records of user actions, system events, and potential insider threats. In addition, message data and file attachments should be easily exportable to support legal discovery, audits, and regulatory reviews.

6. Flexibility and ease of adoption

Any new tool should be intuitive for users and integrate with existing systems. This reduces training overhead and encourages adoption across business and technical teams.

Enabling Faster, Smarter, and Safer Decisions

When implemented correctly, a secure collaboration platform can become a force multiplier across the enterprise. Insurers can break down internal silos, reduce risk, and improve decision-making while ensuring full transparency and compliance.

Robust platforms can also increase resiliency. Outages happen often; a secure collaboration hub can keep teams connected and minimize business disruptions when primary chat systems go down.

The Bottom Line for Insurance Leaders

Senior executives in insurance must now ask: Are our communication systems truly compliant, resilient, and efficient enough to support the demands of our business? With the rise of secure, self-sovereign collaboration platforms, the industry has a clear path forward.

The digital transformation occurring throughout all levels of the claims management industry is not new. It began years ago and is just now beginning to truly shake up this sector. At Sedgwick, we have been focused on the next generation of digital tools, but it's critical to understand where we've been, where we are now, and where we're going. If companies want to ensure they are maximizing this exciting new technology.

Where We've Been

The claims industry has been leveraging analytical AI for years at this point, such as in predictive modeling programs. More recently, the advent, and rapid adoption, of generative and agentic AI have emerged as key differentiators for third-party administrators (TPAs). Understanding how companies can leverage this technology, and creatively and effectively apply it to different lines of business to drive new and improved outcomes, will be a deciding factor in terms of success.

Most companies in our industry started in the same place when generative AI burst on the scene two and a half years ago: document summarization. While we were all starting to recognize the power of generative AI, that technology began to evolve at exponential speed. Everyone learned to fail fast in this space and spent significant time understanding the new features as they came out every month. Many companies introduced initiatives using data extraction and analysis from claims-related documents, while others explored whether large language models (LLMs) could support automated customer support options. Keeping up with AI's advances drove IT teams to prototype rapidly, but generative AI itself prompted companies to re-evaluate their initial use cases every day.

What did we learn? The keys to success haven't changed: Robust data sets, data science maturity to understand what the data means, and industry-leading claims practice are still the critical components to establish a foundation for digital transformation of the industry. Changing an age-old claims workflow is no easy task and cannot be accomplished overnight. Tech-enabled best practices must be paired with specific goals that prioritize efficiency, customer experience, and results to achieve a claims life cycle that is smarter, faster, and more engaging than ever.

Where We Are Now

Generative AI is already changing the way the industry responds to customers and handles the rapid pace of claims. However, most current efforts are now centered on incorporating agentic AI solutions into claim workflows. At a very basic level, the practice of applying this technology leverages a series of small microservices (utility agents) that are driven by the intelligence and logic of generative AI's analysis of new information. An agentic AI system breaks down a workflow into tasks and subtasks, which then use the utility agents in a "squad" to perform a particular function.

Business practices will be working through transformation exercises for years to come as they look at true agentic AI-driven digital transformation opportunities.

The next and the most vital step is looking beyond efficiency and driving valuable insights for claims examiners. The role of professionals in the claims process cannot be discounted and will never be fully automated. With examiners working in remote and hybrid roles, it has become that much harder to train new colleagues. It's critical to transfer institutional knowledge to the next generation of workers, and AI is now able to provide insights and guidance that is often missed in a remote work environment. Sedgwick has introduced tools at the desk level that support our incredible professionals in a way that ensures their success and eliminates administrative red tape. This approach allows our people to spend their time focusing on and speaking with claimants so they know they are in great hands.

This concept reinforces that, as exciting as these advances are, technologists and executives should always remember the people they serve. Our best-case customer journey is that our customers, who are experiencing a difficult time in their lives, will see a rapid resolution to their claim while engaging with caring, real people who solve their problems with accuracy and insight. This goal is perhaps the most important driver that we in the claims industry can deliver.

Where We're Going

Harnessing the power of agentic AI requires a creativity that recognizes long-term strategic goals and short-term tactical bites that guide a claims administrator from A to Z. It is about problem solving in a very human way and allowing our colleagues to take advantage of these incredible tools to broaden understanding and transform the industry forever.

I'm very excited as we think forward to the new capabilities that we expect from generative and agentic AI this year. Virtual agents will finally become proficient in holding real conversations with customers. The pairing of robust data science capabilities with agentic AI frameworks will allow companies to reimagine their claims processes from end-to-end. And tools that drive insight and action at the desk level will become a part of the daily routine as humans work side by side with agents.

This is all to say that the extensive work and experience that got us to where we are today is as important as where we are heading. Through exceptional colleagues, data science, models, the very best in the claims industry, and agentic AI, the claims industry is poised to lead a bright future for clients and claimants around the world.

In 2024, insured losses from U.S. severe convective storms (SCSs) exceeded $50 billion for the second consecutive year. This category of peril — which includes tornadoes, hail and straight-line winds — has grown increasingly prominent in recent years, posing significant challenges for risk managers across multiple sectors, including energy, agriculture, insurance, construction and transportation.

The 2024 season began at a rapid pace, with 1,264 preliminary tornado reports from January to June — the second-highest total for this period since 2010. This momentum carried into the second half of the year, culminating in 1,855 preliminary reports for 2024 (Table 1), surpassed only by the 2,240 reports in 2011.

Additionally, 2024 experienced above-average large hail activity — historically the leading cause of SCS-related property damage in the U.S. — with 829 preliminary reports. Straight-line wind activity also exceeded historical norms, with 16,701 reports, making 2024 the third most active year since 2010.

Storm clouds over solar farms

One sector facing increasing risk from SCS events is utility scale solar energy — large solar installations that generate electricity for the power grid. This industry has seen rapid growth in recent years, particularly in Texas. Since 2014, solar energy generation in Tornado Alley and Dixie Alley states has increased by almost a factor of 50, from one terawatt hour to 48 terawatt hours. Most of this growth comes from Texas due to its high solar irradiance levels and streamlined process for approving and building solar energy projects.

However, as more solar farms are built in storm-prone states, the risk of large losses for farm owners and insurers is increasing. The risk is heightened by a recent trend toward larger, thinner solar panels, which are more vulnerable to damage. In March 2024, for example, a hailstorm damaged thousands of solar panels at the Fighting Jays Solar Farm in Fort Bend County, Texas. This event resulted in costly panel replacements and reduced energy output. Insurers anticipated paying out $50 million, reaching the farm's hail coverage sublimit.

The risk is not just restricted to the Central U.S. In October 2024, an EF2 tornado that spawned from Hurricane Milton tore through a solar farm in central Florida, also damaging 30 homes in the area.

The property insurance market for utility-scale solar has struggled with high premiums and limited coverage availability. These challenges stem from significant losses in recent years and the unique vulnerability of solar panels, which complicates risk assessment. As a result, utility-scale developers have turned toward improving resiliency through engineering design and innovations in tracking technology.

Harnessing resilience in a changing climate

The most significant natural peril loss drivers for solar projects are hail and named windstorms. The solar panel modules are the primary components that have high vulnerability to windborne debris and hail-related damage, which is dependent on the module glass thickness. While the exposure value of solar modules is project-dependent, they typically account for a significant proportion of the insurable risk.

As a result of the recent increase in SCS loss activity, risk managers for solar projects are increasingly considering a range of mitigation strategies, such as:

• Stowing solar panel modules at specific tilt angles, decreasing the angle of impact for hailstones and reducing the likelihood of wind-related damage
• Implementing real-time weather monitoring and automation, automatically initiating protective measures, such as tilting, as storms approach

New and existing solar projects can also benefit from a comprehensive risk assessment, including geographic and historical analyses of hail, tornado and straight-line wind events. WTW works with utility-scale solar developers and operators evaluate and quantify probable maximum losses, considering site-specific engineering design, risk mitigation and tracking system stow strategies for both wind and hail to quantify natural catastrophe risk precisely.

Additionally, understanding how the risk is evolving over time is vital for effective risk management. WTW Research Network partner Columbia University has found a two-to-threefold increase in tornado outbreaks across the southeastern U.S., particularly during winter and spring, over the past four decades.

By combining these risk assessment and mitigation methods into a comprehensive approach, the solar industry can better prepare for severe weather events and navigate an evolving risk landscape.

The fast-changing geopolitical landscape is creating risks and challenges for a shipping industry already juggling the energy transition and the legacy of the COVID-19 pandemic, according to Allianz Commercial's 2025 Safety and Shipping Review.

The industry faces an increasingly volatile and complex operating environment, marked by attacks against shipping, vessel detentions, and sanctions, as well as the fall-out from incidents involving damage to critical subsea cables. Furthermore, the ripple effect of increasing protectionism and tariffs threatens to remake supply chains and shake up established trade relations.

Given that 90% of international trade is transported across oceans, those developments are concerning, especially as the industry continues to see the potential for large claims from traditional risks such as fires, collisions, and groundings, which are still the main drivers for total losses of large vessels.

However, there is also good news. The shipping industry has made significant improvements when it comes to maritime safety in recent years. During the 1990s, the global fleet was losing more than 200 vessels a year. This total had halved 10 years ago and is now down to a record low of 27 as of the end of 2024 (from 35 in 2023).

The relevance of political risk and conflict as a potential cause of maritime loss is increasing with heightened geopolitical tensions. Total losses from traditional causes may have reduced, but this positive trend could be offset by war and other political-related exposures. As an industry, we are in a better position with regards to traditional risks, but there is a renewed focus on geopolitical risks.

U.S.-China trade conflict and growing shadow fleet bring challenges

China has been the biggest target of the protectionist measures of the U.S. administration, with tariffs reaching 145%, before both countries agreed to reduce them for 90 days. Developments have significantly affected global maritime trade, with approximately 18% of it subject to tariffs as of mid-April 2025, compared with 4% in early March, and dramatic declines in shipments reported in the immediate aftermath of the "Liberation Day" announcements.

While the future of U.S. trade-focused policies remains uncertain, another phenomenon is posing an increasing challenge for the maritime and insurance industries: the shadow fleet. Since the start of the war in Ukraine, the size of the shadow fleet has grown significantly. Today, around 17% of the world tanker fleet is thought to belong to the shadow fleet: Estimates indicate there are close to 600 tankers trading Russian oil alone. Shadow fleet vessels have been involved in tens of incidents around the world including fires, collisions and oil spills.

Fires and mis-declared cargo remain a top concern for large vessels

Large vessel fires are still a major concern for hull and cargo insurers. There were seven total losses reported across all vessel types during 2024, the same number as a year earlier. The number of incidents overall was up year-on-year to a decade high of 250, again across all vessel types. Around 30% of these fires occurred on either container, cargo or roll-on roll-off vessels (ro-ros) (69). More than 100 total losses of vessels have been caused by fires in the past decade.

Efforts to mitigate these risks are underway, with regulatory changes and technological advancements aimed at addressing mis-declared cargo, a primary contributor to such fires. This is critical as the electrification of the global economy poses further challenges given the growing number of lithium-ion batteries and battery energy storage systems being transported.

There is little doubt the shipping industry is becoming more resilient against the risks associated with large vessels, although we can by no means say they are under control. However, only 27 total losses during 2024 underlines the positive trend. To put this in perspective: There are over 100,000 ships (100GT+) in the global fleet. 

However, uncertainty and multiple risks persist. Cyber-attacks and GPS interferences are increasing. Ceasefires have raised hopes, but the Red Sea security threat and supply chain disruption will likely remain. Meanwhile, the green transition requires much work. The coming years will be decisive and will determine the path of the sector and global trade.

To read Allianz Commercial's 2025 Safety & Shipping Review, please visit: Safety and Shipping Review.

In 2025, data is the most valuable currency in the insurance industry. From enhancing risk prediction to boosting customer satisfaction, data analytics is transforming how insurers operate, compete, and grow. As digital adoption accelerates, insurance companies that strategically leverage analytics are moving ahead—improving underwriting accuracy, streamlining operations, and redefining customer experiences.

Here are the top 10 ways data analytics is revolutionizing insurance in 2025:

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1. Smarter Risk Assessment and Underwriting

Traditional underwriting relied heavily on static historical data. In contrast, predictive analytics, powered by machine learning and big data, allows insurers in 2025 to assess risks in real time using dynamic variables—from wearable health devices to smart home sensors and driving behavior.

This leads to more accurate pricing, reduced loss ratios, and fairer premiums for policyholders.

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2. Fraud Detection and Prevention

Insurance fraud continues to be a costly problem, draining billions annually. Advanced analytics tools now detect suspicious patterns, flag inconsistencies in claims, and identify fraud networks using AI and behavioral modeling.

By combining structured and unstructured data from claims, social media, and third-party sources, insurers can now prevent fraud.

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3. Enhanced Claims Management

Filing a claim used to be a slow, manual process. Now, automated triage driven by data analytics improves both speed and accuracy. Machine learning algorithms assess claims for severity, legitimacy, and payout eligibility within seconds.

In 2025, many insurers also deploy image recognition to assess property damage from photos, significantly reducing processing time and improving customer satisfaction.

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4. Personalized Customer Experiences

Customers today expect the same level of personalization they receive from digital-native companies. Analytics enables insurers to deliver tailored product recommendations, personalized policy options, and risk alerts.

For example, a customer using a fitness tracker may receive discounted premiums and wellness tips. This level of engagement helps insurers build loyalty and boost retention.

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5. Optimized Pricing and Profitability

Data-driven pricing models allow insurers to optimize premiums based on real-time data and customer behavior rather than relying solely on general demographic data. By doing so, they can avoid underpricing high-risk customers or overpricing low-risk ones.

This granular approach leads to more competitive pricing, improved loss ratios, and healthier profit margins.

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6. Better Customer Segmentation and Targeting

With advanced segmentation models, insurers can group customers based on lifestyle, risk profile, preferences, and behavior. This enables highly targeted marketing campaigns and product bundling strategies.

As a result, insurers can reach the right audience with the right message at the right time—boosting conversion rates and cross-selling opportunities.

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7. Improved Regulatory Compliance

In a heavily regulated industry, analytics helps insurers stay compliant. AI-powered tools assist in automating regulatory reporting, detecting compliance gaps, and ensuring transparency in data usage.

This is particularly crucial with evolving data privacy regulations like GDPR and regional data residency laws.

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8. Streamlined Operational Efficiency

Data analytics drives process automation across underwriting, claims, policy servicing, and customer support. In 2025, most leading insurers use predictive models to forecast workloads, optimize resource allocation, and reduce operational bottlenecks.

This means lower administrative costs, faster service delivery, and a more responsive business model.

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9. Risk Mitigation

Instead of simply insuring against risk, insurers are using data to help customers avoid it. For instance, by analyzing telematics data, an auto insurer can alert customers about unsafe driving patterns.

Property insurers may use weather data and IoT devices to warn homeowners of impending floods or fires, preventing losses. This role deepens customer trust and strengthens insurer-client relationships.

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10. Strategic Business Decision-Making

At a macro level, data analytics gives insurers real-time dashboards and actionable insights for better strategic planning. Executives can make informed decisions on market expansion, product development, risk pooling, and capital allocation.

With the power of AI-driven forecasting, insurers in 2025 are increasingly anticipating market trends rather than reacting to them.

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Final Thoughts: Data as a Growth Driver

The insurance industry has always been data-rich—but only in the past few years have insurers truly begun to harness that data for innovation, efficiency, and growth. In 2025, the winners will be those that turn data into insights—and insights into action.

By embedding analytics into every layer of their business—from claims to customer care—insurers are not just adapting to change; they are leading it.

Distracted driving remains one of the deadliest yet grossly underreported causes of accidents in the U.S., contributing to more than 3,000 deaths annually and countless injuries. Despite extensive public awareness campaigns, achieving sustained behavior change requires more precise, targeted interventions. Commercial fleets, positioned uniquely at the intersection of transportation safety and risk management, are emerging as critical players in reshaping how insurers assess, mitigate, and ultimately prevent risks associated with distracted driving through telematics.

Data-Driven Risk Mitigation: Turning Insights Into Action

Telematics technologies gather impressive amounts of data on driving behaviors, offering fleet managers and insurers granular insights into driver habits and route-specific risks. Through predictive analytics, insurers and fleets can identify and address high-risk zones, such as accident-prone intersections, school zones, or congested roadways. This allows for tailored interventions, including targeted safety campaigns, improved signs, adjustments to traffic infrastructure, or increased enforcement efforts in identified high-risk areas.

Data analytics can also highlight often-overlooked dangers contributing to distracted driving, such as outdated driver education. By integrating these less obvious risk factors into their predictive models, insurers and fleets can implement comprehensive prevention strategies that address visible risks and subtler, yet important, driver safety issues.

For example, telematics-driven risk mapping has allowed insurers and fleets to implement preventive measures in historically dangerous locations, reducing accident rates and claims frequency. By focusing efforts precisely where they're needed, this data-driven approach transcends traditional reactive methods, positioning insurers and fleet operators as risk mitigators.

Aligning Pricing With Real-World Behavior

Insurance pricing traditionally relies heavily on broad historical data and generalized risk profiles, often failing to capture the nuances of individual driver behavior. Telematics introduces a shift, enabling insurers and fleet operators to implement behavior-based incentive models. These models reward drivers for consistently executing safer driving habits with real-time feedback and tangible benefits, such as discounted premiums or performance-based rewards.

Insurers encourage sustained improvement in driving practices by creating incentives tied directly to observed behavior. Fleets that use these incentive programs regularly report substantial reductions in distracted driving incidents, resulting in fewer claims and lower insurance costs. Such incentive-driven models thus offer a compelling advantage, transforming insurance from a passive coverage product into an active driver of safer roads.

Predictive Modeling: Preventing Claims

Beyond simply recording current driving behaviors, telematics data enables predictive modeling, allowing fleets and insurers to anticipate and mitigate risks before they materialize into claims. Predictive analytics identify patterns and indicators of potential incidents, such as frequent hard braking events, abrupt acceleration, or erratic lane changes. Recognizing these early signs enables fleet managers to implement targeted training, corrective coaching, and preventative interventions for at-risk drivers.

These examples demonstrate the power of predictive telematics, with fleets lowering their incident rates by addressing risk factors identified through data. Insurers benefit directly from this preventive approach, witnessing reductions in claims frequency and associated operational costs. As such, the predictive capacity of telematics technology shifts the focus from managing claims after the fact to preventing accidents, aligning closely with insurers' business objectives and profitability.

Expanding Safety From Fleets to Communities

Telematics-driven safety initiatives have a ripple effect that extends far beyond fleet vehicles. Professional drivers, consistently monitored and coached through telematics technologies like AI-powered dash cams and real-time, in-cab alerts, often carry improved driving habits into their personal lives. This behavioral transfer improves community safety, reducing the broader incidence of distracted driving in local neighborhoods and personal travels.

This community-level impact provides insurers with an additional layer of risk mitigation. Safer communities translate into fewer accidents and claims, creating safer driving environments for everyone. Insurers benefit from this broader cultural shift toward safer roads, reinforcing their role not merely as providers of financial protection but as partners in community safety.

Navigating Legal and Regulatory Challenges

Increased scrutiny and evolving regulatory landscapes surrounding distracted driving pose challenges for insurers. Predictive telematics offers insurers a valuable tool for managing and mitigating these challenges. Insurers and fleets establish a transparent framework demonstrating their commitment to risk management by maintaining comprehensive, data-driven records.

This approach helps insurers stay ahead of potential regulatory changes and liability issues by providing clear, objective evidence of risk management practices and incident prevention efforts. The transparency fostered by telematics data builds trust among regulators, policyholders, and fleet operators, positioning insurers as responsible, forward-thinking leaders in risk management.

Collaborative Approaches for Long-Term Impact

The successful implementation of telematics-driven safety programs requires close collaboration among insurers, fleet managers, and technology providers. Insurers are critical in advocating for and facilitating the adoption of telematics technologies, providing incentives to fleets through favorable policy terms, discounts, and educational support. Fleets, in turn, must commit to integrating these technologies fully into their operational strategies, embracing driver education and performance monitoring.

This collaboration creates a strong ecosystem dedicated to safety measures, data transparency, and continuous improvement. The mutual benefits, lowered claims rates, improved road safety, reduced operational costs, and enhanced community relations showcase the value of a shared approach to risk management.

Insurers as Strategic Partners in Prevention

Insurers are no longer just entities that assist after accidents. With predictive telematics, they're becoming crucial allies in actively working to prevent accidents in the first place. By using live data and intelligent predictions, they're getting involved in making our roads safer for everyone. This forward-thinking approach isn't just the right thing to do; it also strengthens insurers' businesses by improving profits and risk assessment, all while building stronger connections with the people and communities they support.

As distracted driving continues to threaten road safety, insurers armed with telematics technology and fleet-driven safety initiatives are uniquely positioned to lead the charge. This transforms how risks are assessed and managed, ultimately reducing the devastating human and financial toll of distracted driving.

When a natural disaster strikes, insurance companies face a challenge beyond the physical damage itself—the overwhelming surge of claims that follows. Take Storm Boris in September 2024. After it swept through Central Europe, insurers faced an estimated €2 billion to €3 billion in claims, primarily due to extensive flooding and structural damage. In November, devastating floods in Valencia cost insurers over €3.5 billion, based solely on the first 72,000 claims received.

These storms are a tall order for any insurance firm still relying on traditional claims processing. One simply has to start adding up all the workhours that are required for in-person assessments and manual approvals to realize why so many homeowners and businesses have to wait for weeks or even months for their reimbursements.

At PortalPRO, a service economy platform that helps property managers and owners coordinate repairs more efficiently, we have seen how AI-driven tools can be of great use for insurance companies during peak claims periods.

How bottlenecks strain traditional insurance processing

The insurance claims process hasn't changed significantly for years. Damage is reported, and an adjuster is scheduled for an on-site inspection. Paperwork ten moves between departments, and eventually the payout or repair offer reaches policyholders.

This whole process can take weeks or even months and is often burdened by all sorts of delays. This is especially true after natural disasters, when thousands of claims pour in simultaneously. Considering that insured losses from catastrophic events exceeded $135 billion for the fifth consecutive year, it's easy to understand why the system gets overloaded. It's also clear that it can no longer function as it used to and needs to find a way to process claims faster.

With AI-powered tools, clients can report property damage online by uploading photos and have the damage assessed in seconds.

Last year, we observed this principle being applied to the insurance field after a major storm hit Lithuania. We stepped in to assist one of our partner insurers that was experiencing a spike in claims—more than 300 requests at peak demand. After implementing AI-powered tools, insurers were able to reduce their processing times by 80%. What would've typically taken about 50 days required only a few, and people who had their homes damaged by the storm were able to proceed with repairs much faster. This new insurance damage claims self-service solution became a bridge between insurers, property owners, and repair specialists, ensuring that claims weren't just approved quickly but translated into real action.

Why a smarter approach to claims processing matters

For insurers, streamlining claims means more than just efficiency. It reduces administrative costs, minimizes fraud—which makes up about 10% of all insurance claims costs—and helps policyholders navigate one of the most stressful moments of their lives with greater ease. By integrating structured digital workflows, insurers can cut out unnecessary back-and-forth and ensure claims move seamlessly from reporting to resolution.

The impact is just as important for policyholders. They get quicker access to funds and repairs when they need them most, a smoother claims experience overall, and more transparency throughout the process. And it matters—Accenture found that 83% of customers with easy claims experience are likely to renew their policies. Insurers that don't embrace the advantages such technology provides aren't just falling behind in efficiency; they risk losing customers to faster competitors.

As extreme weather becomes more frequent, insurers face mounting pressure to process a rapidly growing number of claims. The challenge isn't just about keeping up—it's about maintaining accuracy, fairness, and trust in a system that policyholders rely on during their most vulnerable moments. Structured, data-driven solutions that don't just speed up the process but also use the expertise of repair specialists have the potential to remove bottlenecks and significantly improve policyholder's experience.

The cost of identity fraud for financial institutions and businesses is rising at an alarming rate. According to NASDAQ, global fraud reached nearly $500 billion in 2023. In 2024, 40% of financial institutions saw an increase in fraud-related losses compared with the previous year.

Behind these staggering numbers is a fast-evolving threat landscape. Fraudsters are leveraging next-gen technology like generative AI to create more convincing phishing scams, synthetic identities and even deep fakes.

While businesses are investing in stronger fraud detection tools, they can't catch every threat. To stay ahead, it's time for companies to adapt. Enter identity fraud loss insurance, an emerging layer of protection designed to help banks manage the "when" of fraud loss.

The Limitations of Current Fraud Risk Strategies

Recent innovation means fraud risk management strategies have come a long way in recent years. Businesses now have access to multi-factor authentication, identity verification, anomaly detection and other solutions to build a robust risk monitoring program.

But fraud still slips through.

When fraud happens, the consequences extend beyond reputational harm—they hit the bottom line. Though technology can improve monitoring and prediction strategies, none of the previously mentioned solutions transfers the risk of fraud off a business's balance sheet. That's where identity fraud loss insurance comes in, offering a critical layer of protection that transfers financial risk away from businesses and toward the insurers.

What Is Identity Fraud Loss Insurance?

Identity fraud loss insurance is new to the market but is gaining traction quickly. Integrating AI-powered fraud risk detection with insurance-backed protection shifts financial liability for identity fraud away from businesses, freeing their risk capital reserves. This means organizations can protect their bottom line while preserving risk capital for strategic initiatives.

The benefit? It safeguards revenue without adding operational friction. Businesses can confidently scale customer acquisition efforts without proportionally increasing their exposure to fraud loss risk.

An Untapped Opportunity for Brokers

In 2023, account takeover fraud surged to nearly $13 billion in losses, up from $11 billion the previous year. New-account fraud reached $5.3 billion, rising from $3.9 billion in 2022. Meanwhile, a 2023 report from Thomson Reuters estimated the financial losses due to synthetic identity fraud to be between $20 million and $40 million annually.

These growing threats highlight a critical need: Businesses and financial institutions require more than temporary fixes—they need a strategic, long-term solution that allows them to scale.

In a saturated risk management market, identity fraud insurance gives brokers a true differentiator. It fills a crucial gap in traditional fraud mitigation strategies by directly transferring financial liability off the balance sheet.

It also opens the door to more value-driven conversations with existing clients, especially for high-risk businesses like banks, credit unions, payments providers and lenders.

Implementing for Success

Identity fraud loss insurance can unlock significant value. However, to maximize its benefits, brokers should guide their clients through a thoughtful evaluation process before implementation. Key steps include:

• Understand current fraud exposure: Ensure the client has a firm grasp on their existing fraud risk and loss, as well as potential vulnerabilities.
• Evaluate policy details: Carefully assess policy coverage, exclusions, claims processes and alignment with existing compliance and fraud prevention frameworks to ensure they're partnering with the right provider.
• Verify data capture capabilities: Check that the solution's transaction audit features automatically gather the data required to file fraud loss claims and reduce claim adjustments.
• Prioritize fast, reliable claims processing: Look for a solution with electronic claims processing capabilities of the fraud loss insurance provider and 30-day or less claims payment guarantees.

These steps ensure that the policy delivers real value and that clients are fully prepared to act when fraud strikes.

Identity fraud is an unavoidable in today's digital landscape, but businesses no longer have to bear the financial burden. Identity fraud loss insurance offers a strategic layer of protection that empowers businesses to grow confidently and onboard more customers without expanding their fraud risk exposure.

As this new-to-market solution gains traction, brokers have a unique opportunity to be at the forefront of change – helping clients stay ahead of emerging threats while delivering measurable value and building deeper trust.