It's been a wild and bewildering few years in our industry, and almost everything seems to be in flux. Leaders are seeking some reliable sense of what to expect so they can strategize and plan effectively.
Three consecutive years of rate increases have taken a toll on consumers and businesses but have achieved the desired goal of profitability -- at least for now, as insured losses from catastrophe events across the globe in the first half of 2025 increased to almost $100 billion, which marks the second highest recorded after 2011's $140 billion, according to an Aon report. These figures are up from $71 billion in H1 2024 and are threatening, especially as hurricane season has yet to peak.
Lately, industry colleagues and client inquiries are shifting from product design and market entry to more strategic planning. Meanwhile, insurtech funding is rebounding with renewed urgency and excitement for all things AI, but also testing more recently adopted investor parameters, established after years of excesses.
What follows is an executive level review of our thought leadership articles (all of which can be accessed at Insurance and InsurTech Blog) published over the past few months, mined for insights. It turns out the majority of the trends we have identified and illuminated are emerging.
There are other noteworthy developments, too, such as Progressive claiming the No. 1 spot in market share, unseating State Farm. The most-talked-about new insurance/insurtech entrants—Root, Lemonade and Hippo—have survived, evolved or thrived despite declarations of their demise. And, let's not overlook a milestone, as P&C reached $1 trillion in written premiums for the first time.
Looking back at some of 2025 predictions, we note that Predict & Prevent continues to gain traction. The electrical detection, fire prevention solution by Ting is a shining example. Advances in leak detection and water shut-off along with workplace injury avoidance are also highlights. Legal abuse centered on litigation financing is finally getting more attention; record-setting verdicts are adding pressure, on top of weather risk. Finally, there is anticipation of greater M&A activity.
And 2025 is just the halfway point of the decade. So remain buckled in and stay tuned.
Here are some of our most-read and commented-on articles:
(Re)defining Empathy in Insurance
The expression "empathy in insurance" is as abused and misunderstood as "innovation in insurance." The underlying intent and value of both are important but vague, contradictory at times and often misapplied by industry practitioners.
The future success of insurance depends on repositioning the industry for higher relevance to the new consumer and stakeholder alike. Redefining empathy amid exponential gains in technology is a big step forward in thoughtful and responsible use of AI in insurance.
Human touch in insurance is not going away any time soon, but your next co-worker is likely to be AI-powered.
Here is the link.
AI Can Fix Everything in Insurance
Every time we read an article or a marketing piece espousing the astounding power of AI as applied to insurance, we cannot help but think about Gus Portokalos!
As you may recall, Gus was the bride's father in the 2002 hit movie "My Big Fat Greek Wedding," who famously suggests, "Put some Windex on it!" as a solution to all manner of problems, including cuts and scrapes. Gus proudly related every word, phrase and meaning back to his Greek ancestry as a solution or fix to each conversation. A lot of people are treating AI in the same fashion.
Even the typically thoughtful Bill Gates gushed that AI is "the first technology that has no limit" and "could be as revolutionary as the internet or mobile phones."
As with the greatest man-made inventions that have shaped human history, including the wheel, printing press, electricity, airplane and internet, AI is likely to drive unimaginable benefits, innovation and unexpected consequences. Unlike these earlier advances, however, AI may the first man-made invention that threatens its creators. We have been warned!
Here is the link.
Trust, Personalization and Transparency
The insurance industry is at a crossroads. Brewing negative consumer sentiment about insurance affordability and premium fairness is spilling over as profitability struggles threaten markets. As the industry takes needed action, insurers find it difficult to inform and educate a customer base that views pricing as opaque and overly complicated. All of this raises the question: Can premium adequacy and trustworthiness co-exist?
The year ahead offers a pivotal opportunity for the insurance industry to redefine itself. By prioritizing transparency and personalizing policies, insurers can address premium leakage while restoring trust. Companies that lead with these values will not only strengthen their bottom lines but also reshape the industry's reputation for the better.
Here is the link.
P&C Insurance: Mind the Gap(s)
The expression "Mind the Gap" dates to the 1960s and announcements on the London Underground. The purpose was to warn passengers of the potentially dangerous gap between the train door and platform, which are not perfectly aligned. The line has since evolved to become a general warning about the danger of open space or gap between two points.
It applies especially well to the many risks and headwinds faced by the insurance industry today. And if unattended, the gap may be impossible, or at least much harder, to close.
The role of innovation and insurtech cannot be overstated for an industry that historically is people- and labor-intensive. Closing these gaps is vital for the insurance industry and its contributions to the economy and consumer livelihoods. Long-term insurance stability is in the best interests of investors, financiers and risk takers of all types, including businesses and consumers. Minding the gap is foundational for industry success in 2025 and beyond.
It's time to mind the gap(s).
Here is the link.
P&C Insurance Claims: The Time Has Come
For those of us who have worked in this industry for a decade or longer, when you honestly assess how claims handling has evolved over time, you would fairly conclude that while certain aspects have improved – some even impressively – the fundamental model, process, service and financial outcomes have essentially remained unchanged or marginally improved.
When comparing insurance claim modernization with that by others in financial and consumer services, the shortcomings become even more obvious. Yet the environment in which claims occur and are resolved has changed significantly.
The reasons and underlying factors for this lack of breakthrough are many and complex and playing catch up in real time has not proven to be easy so far, but it is possible – and mandatory.
The time is now, conditions are ripe, the solutions are at hand and the future of the industry awaits.
Here is the link.
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A complete library of our thought leadership articles can be found at Insurance and InsurTech Blog. You may also subscribe to our free daily Connected Newsletter or podcast (Connected Podcast on Apple podcasts or Connected Podcast on Spotify).
