The 6 most important trends that insurers need to know in 2025.

The insurance industry is facing profound change. While regulatory requirements are increasing and customer expectations are constantly evolving, digital technologies are becoming increasingly important. Automation, cloud solutions and data-driven business models are changing how insurers assess risks, settle claims and interact with customers.

2025 will be a decisive year for the industry. Companies that focus on innovation at an early stage will be able to increase efficiency, reduce costs and secure their market position in the long term. At the same time, digitalization brings new challenges: Data security, talent shortages and the integration of modern technologies into existing systems are just some of the hurdles that insurers will have to overcome.

Which developments will particularly shape the industry in 2025? These six digital trends will not only point the way forward, but will also determine which insurers actively shape change - and which will lose out.

1. cloud migration as the basis for digital transformation

The insurance industry is in the midst of a technological realignment, and cloud migration is one of the key drivers of this development. While many insurers have long relied on local data centers, 2025 will finally be the year in which cloud-first strategies become the norm.

Why are more and more insurers turning to the cloud? The advantages are obvious:

• Scalability & flexibility: Cloud infrastructures adapt dynamically to demand. Insurers can ramp up their IT resources in real time, especially in the event of high-demand incidents such as natural disasters.
• Cost reduction: By migrating to the cloud, insurers save high investment costs for on-premise servers, maintenance and hardware. Instead, only the resources that are actually used are paid for - a huge advantage for operational efficiency.
• Integration & innovation: Modern cloud platforms make it easier to connect to third-party software, AI-supported analysis tools and data-driven services. This enables insurers to bring innovative products to market faster and integrate new services efficiently.
• Highest security standards: The fear of cyberattacks and data leaks is justified, but cloud providers invest billions in state-of-the-art security technologies. AES-256 encryption, multi-factor authentication and continuous security updates ensure that sensitive customer data is protected in the best possible way.

The cloud as the basis for embedded insurance & AI

The cloud is much more than just a place to store data - it is the basis for many of the innovative insurance models that will become increasingly important in 2025. Embedded insurance would be inconceivable without cloud-based real-time data processing, and AI-supported risk assessment and automated claims settlement can only be implemented efficiently thanks to the high computing power and data availability of the cloud.

2025: The turning point for insurers

Companies that continue to rely on outdated IT systems risk not only high operating costs, but also losing touch with the market. Insurers that rely on a well thought-out cloud strategy, on the other hand, will benefit from greater agility, faster product development and an improved customer experience.

On-premise infrastructures - risk or necessary alternative?

Despite the obvious advantages of the cloud, there are still companies in the insurance industry that rely on on-premise solutions. There are many reasons for this:

• Strict regulatory requirements: In some markets, insurers have to store customer data locally for compliance reasons. Particularly in countries with strict data protection laws, complete cloud migration is often not possible without further ado.
• Historically evolved IT architecture: Many insurers work with legacy systems that are deeply integrated into their business processes. Migration to the cloud is therefore associated with high investments and risks.
• Maximum control over data and systems: Companies with their own IT infrastructure retain full control over their data without being dependent on external providers.

But this is where the biggest problem lies: on-premise solutions are often expensive, inflexible and inhibit innovation. Maintenance and scaling require high investments, and many legacy systems are not designed to work with modern technologies such as AI, API-based platforms or real-time data processing.

In 2025, many insurers will therefore rely on hybrid cloud models in which business-critical data continues to be hosted locally, while scalable, data-intensive processes are moved to the cloud. This middle way enables companies to meet compliance requirements without sacrificing the benefits of the cloud.

2. embedded insurance - insurance where customers need it

The way in which insurance policies are taken out is changing fundamentally. Embedded insurancei.e. the seamless integration of insurance products into existing purchasing and service processes, will become even more important in 2025. Customers will receive automated, context-related offers at exactly the right moment - without any additional effort or complicated application processes.

Why is this market growing so rapidly? The focus is on convenience and personalization. Customers today expect insurance to be available exactly where they need it.

• Device protection insurance: When you buy a smartphone, the right insurance is offered directly with it - conveniently and without additional effort.
• Travel insurance: After booking the flight, an option for the appropriate travel insurance will automatically appear, adapted to the travel dates.
• Car insurance: Telematics data records driving behavior and enables dynamic calculation of insurance premiums.
• Income and health insurance: Companies integrate these insurances directly into digital benefits platforms to offer their employees additional protection.

Why embedded insurance will be essential for insurers in the future

Traditional insurance products are often perceived as complicated, intransparent and inflexible. Embedded insurance is fundamentally changing this by placing insurance where it offers the greatest added value. Thanks to modern APIs and real-time data processing, products can be dynamically adapted to customer needs - hyper-personalized, simple and immediately available.

The model also offers major advantages for insurers themselves. New sales channels are created, customer acquisition becomes more efficient and customer loyalty increases. Instead of laboriously acquiring new customers, insurers rely on strong partners from e-commerce, the mobility industry or the healthcare sector.

3. prevention-oriented insurance models - from loss adjustment to loss prevention

Insurers are increasingly relying on preventive measures to minimize damage at an early stage. IoT, AI and big data enable more precise risk analysis and help to prevent damage before it occurs.

• Industrial insurance: IoT sensors enable predictive maintenance to prevent machine breakdowns and minimize costly repairs.
• Home contents insurance: Smart security systems help to prevent break-ins before they happen, thus reducing the risk for policyholders.
• Health insurance companies: Collaborations with digital health platforms enable personalized prevention programs for a healthier life.
• Agricultural insurance: Satellite data supports the analysis of weather risks and helps to create more precise damage forecasts.

According to the Institute of Insurance Science at the University of St. Gallen, preventive measures can reduce claims costs by up to 20%. The Fraunhofer Institute SIT also shows how AI analyses can identify risks at an early stage and make insurance offers more precise.

The benefits are obvious: fewer claims, lower costs and more satisfied customers. Insurers who invest in smart prevention solutions in 2025 will secure a competitive advantage in the long term.

4. digital ecosystems - insurance companies are becoming part of a networked service world

Insurance is no longer an isolated product that is purchased separately. In 2025, the focus will shift to digital ecosystems in which insurance is offered as integrated services within larger platforms and value chains.

Companies such as car manufacturers, real estate platforms and banks are increasingly building platform models that embed insurance products directly into their services. This creates ecosystems in which customers not only take out insurance, but also receive complementary services such as claims processing, repair services or financing options from a single source.

• automobile companies: In addition to leasing contracts, they offer directly embedded car insurance with personalized rates based on driving behavior.
• Real estate platforms: Rental or purchase contracts are seamlessly linked with suitable building and household contents insurance policies to simplify the insurance conclusion process.
• Digital health platforms: Supplementary health insurance is integrated directly into telemedicine or fitness offerings to combine health services and insurance cover.

The key to successful ecosystems lies in seamless digital integration - and this is where appointment and customer management becomes crucial. Insurers need to integrate their customer dialog into platforms and digital channels to provide a seamless experience. Modern solutions such as Calenso help insurers to integrate appointments, advice and customer engagement into digital ecosystems.

5. talent transformation - the battle for tech experts in the insurance industry

The digital transformation is not only changing products and processes, it is also presenting insurers with one of the biggest challenges: the lack of technology and data experts.

While insurance companies are traditionally considered conservative industries, they are now in direct competition with tech companies and start-ups for talent with the right skills. Data science, cybersecurity, AI development and cloud architecture are essential to remain competitive. But this is precisely where the problem lies: insurers are struggling to attract these specialists.

• Outdated IT structures: Many insurance companies are struggling with legacy systems that are unattractive to modern developers and slow down the digital transformation.
• New expectations of talent: Young professionals prefer agile working methods, modern technologies and remote working models that many insurers do not yet offer.
• Competition with tech companies: Insurers are in direct competition with companies such as Google, Amazon and FinTech start-ups, which offer more attractive working conditions and innovative technologies.
• The need for digital transformation: Insurers must invest in further training, modern tools and optimized recruiting processes in order to position themselves as future-proof employers.
• Optimized application processes: Efficient solutions such as digital appointment booking for recruiting speed up the application process and offer a better candidate experience.

To be successful in the long term, insurers must position themselves as modern, technology-driven companies. Companies that invest in a digital corporate culture, offer innovative working models and optimize their recruiting processes have the best chance of attracting the talent they need.

Modern solutions such as Calenso for recruiting appointments help insurers to make the application process more efficient and digital. Quick appointments for interviews, automated follow-ups and a smooth candidate experience make all the difference.

6. omnichannel customer engagement - insurers need to be where their customers are

Customer service expectations have changed fundamentally. Customers want to be able to reach their insurance company at any time and via the channel of their choice - quickly, easily and without long waiting times. 2025 will be the year in which insurers will no longer have to implement omnichannel strategies as an additional service, but as standard.

• Flexible contact options: Customers expect communication via their preferred channels - from WhatsApp and live chat to video consultation.
• Digital appointment scheduling: Bookings must be possible directly from digital channels - without complicated detours or manual coordination.
• AI-supported automation: Chatbots and smart workflows reduce administrative effort and ensure faster response times.
• Self-service portals: Digital systems enable customers to report damage or adjust contracts - at any time and without waiting times.

The key to success lies in networking all touchpoints. Insurers that offer an end-to-end customer journey and process customer inquiries across all channels not only increase customer satisfaction, but also reduce the costs per interaction.

Modern omnichannel solutions such as Calenso offer precisely this flexibility. Customers can book their appointments via the website, app or even messenger services - automatically synchronized with internal systems such as CRM or ERP. Insurers benefit from efficient processes, automated reminders and seamless documentation of all customer interactions.

A smart omnichannel strategy also plays a decisive role in sales. With solutions such as Calenso for insurance sales, consultation appointments can be scheduled faster and in a more targeted manner - whether online, by phone or in person. This increases the closing rate, while at the same time less time is spent on unnecessary administrative processes.

2025 will show which insurers master the step towards seamlessly networked, digital customer communication. Companies that focus on smart automation and genuine omnichannel concepts now have the best chance of holding their own in a highly competitive market in the long term.

The insurance industry in 2025: those who act now will be at the forefront

Digitalization is changing the insurance world faster than ever before. Cloud migration, embedded insurance, prevention models, digital ecosystems, talent transformation and omnichannel customer engagement are not just trends, but decisive factors for future success. Insurers that invest in technological innovations, smart process automation and a customer-centric strategy now will come out on top in the long term.

Particularly in the area of omnichannel communication and digital customer journeys, it is clear that customers expect fast, seamless and flexible interaction with insurers. Solutions such as Calenso make it possible to organize appointments, customer service and sales more efficiently and digitally - a decisive competitive advantage in an increasingly networked industry.

For more details and information, the annual IFZ study on the insurance industry provides valuable insights into current trends, challenges and success strategies. It shows that the insurance industry is increasingly focusing on digital transformation and data-based innovations. Insurers that address the results of this research and act early can position themselves sustainably in a changing market.