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Property and casualty insurance trends 2025

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Transform industry challenges into sustainable competitive advantage

As the property and casualty (P&C) insurance industry pushes forward into 2025, new trends are redefining the industry’s landscape. Capgemini’s latest research identified three core themes around which the future of the P&C insurance industry will evolve:

  • Customer first focuses on the transformation of customer experience, particularly within the lens of customer omnichannel interactions and the perceived value of products and services.
  • Enterprise management revolves around how enterprises can evolve their processes, teams, solutions, and operations to enhance agility and operational efficiency while optimizing the cost of doing business.
  • Intelligent industry is all about digitalization. These trends cover the modern solutions that insurers are implementing to deliver end-to-end digital experiences that transform their entire value chain.

As use of technologies like AI and data analytics tools become more commonplace, carriers need to leverage them to streamline processes, optimize costs, and scale intelligently within their complex market environment to drive operational excellence. Our three themes cover the P&C insurance industry’s response to ongoing challenges and opportunities, and address how insurers are planning to become more customer-centric, efficient, and innovative in the coming year and beyond.

This trends book provides a comprehensive overview of the top 10 property and casualty insurance industry trends that will impact organizations in 2025, offering insights into how insurers can improve operations, meet the increasing demands of policyholders, and drive growth.

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Property and casualty insurance industry trends for 2025

Explore the key trends that will influence the P&C insurance industry and establish new benchmarks for efficiency, innovation, and customer value.

Customer centricity
Customer engagement is more valuable than ever before. Evolving policyholder expectations, high customer acquisition costs, and increased data availability are presenting an opportunity for carriers to prioritize seamless, personalized customer experiences.
A focus on policies in force
In recent years, the prioritization of increased premiums and restrictive underwriting has led to a drop in policy in force (PIF) volume. For organizations to expand their business, insurers must effectively scale their operations to grow PIF, underlining a need to increase investment in automation, digital tools, and process optimization.

Underwriting workbenches
Streamlining underwriting procedures is crucial to adapting to the evolving insurance landscape, highlighting the importance of underwriting workbenches. These workbenches enable real-time access to data on a unified platform, facilitating complex decision-making and the automation of routine tasks to improve operational efficiency.
High-speed pricing
P&C insurers are using advanced risk models and real-time climate and market data to address a rise in risk volatility and the increased need for personalized pricing. Doing so permits them to find new opportunities while effectively managing exposure.
Cost take-out
P&C insurers continue to battle against profitability challenges, making cost reduction one of the industry’s highest priorities. As 2025 approaches, carriers aim to implement automation and digitalization to improve operational efficiency and drive cost-effectiveness across global regions.
Broker and agent engagement
Brokers and agents play a pivotal role in the property and casualty insurance industry. P&C insurers are making substantial investments in digital analytics tools like policy management systems, claims processing software, and data analytics platforms to help agents improve policyholder engagement with more personalized advice and solutions.

Process revolution
P&C insurers are becoming more confident in the potential of AI and Gen AI, with new use cases for employees and customers being top-of-mind for carriers. As investment in AI continues to rise, insurers are looking to the technology to improve underwriting quality, enhance onboarding experiences, and streamline insurance claims processing tasks.
Strengthened security
Cybersecurity remains a crucial priority for P&C insurers. Though today’s carriers have many guardrails in place, increasingly complex threats present new risks. Throughout 2025, increased investment in advanced security solutions and protocols will be a top property and casualty industry trend.
Value from data
Data-related challenges often prevent insurers from delivering superior customer experiences that P&C policyholders want. To overcome this, insurers are adopting modern data infrastructure to enhance scalability, flexibility, and real-time data access – enhancing risk assessment and decision-making.
Niche markets for innovation
P&C insurers are leaping at the opportunity presented by niche markets. For insurers to establish a competitive edge, they must enter these emerging sectors early, diversify risks, reduce reliance on traditional lines, and ensure faster time to market. Entering new markets will enable P&C insurers to capture high-margin opportunities, offer comprehensive solutions, and diversify revenue streams.

Conclusion

Evolving customer expectations, technological advancements, and shifting risk landscapes will drive rapid change within the property and casualty insurance industry in 2025. At the heart of this change is customer-centric innovation, where firms will enhance experiences and offers to stay ahead of policyholder expectations. Successful firms will also prioritize process efficiency improvements through operating model shifts and increased investment in advanced technologies to streamline processes and scale potential. Because the need for real-time data insights is increasing, insurers will also focus efforts on data-driven decision-making and security capabilities. Real-time risk model development, modern data infrastructures, and robust security systems will also see investment in 2025, as firms push to improve personalization and future-proof their operations.

By embracing digital transformation and customer centricity, P&C insurers will unlock new opportunities, mitigate risk, ensure regulatory compliance, and achieve lasting success in an ever-evolving landscape.  P&C insurers aiming to emerge as industry leaders in 2025 need to rise to the challenge and embrace the latest trends.

Transform your P&C insurance business with Capgemini’s expertise

Capgemini is a trusted partner for property and casualty insurers seeking to leverage the power of advanced technology to capitalize on today’s rapidly evolving market. Our technology-driven Agency Digitization – Ease of Doing Business, Data Estate Modernization, Embedded Insurance, and Underwriting Workbench empower insurers to enhance operations, reduce costs, and improve risk assessment. Through industry-leading digital transformation, we enable insurers to modernize legacy systems, access data insights, and drive operational efficiency across all business units and regions.  

Unlock the full potential of your business through Capgemini’s industry-leading insurance digital transformation. Contact us today to discover how we can help you lead in the evolving insurance landscape.

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Meet our experts

Shane Cassidy

Executive Vice President, Financial Services; Insurance Business Unit Leader, Capgemini Financial Services
Shane is executive vice president and head of Capgemini’s Global Insurance Business Unit. He has been at the forefront of digital disruption and innovation for two decades, identifying and developing solutions to address market trends.
Adam Denninger

Adam Denninger

Global Industry Leader, Insurance
Adam Denninger leads Capgemini’s global strategy, offers, and go-to-market for the insurance industry. Adam has spent 20+ years creating business and technology strategies and solutions to transform the operating capabilities of leading insurers

Nathan Summers

Managing Director of Financial Services, Capgemini Invent
Nathan Summers is the Managing Director of Financial Services at Capgemini Invent. He has more than 25 years of consulting leadership experience and works with senior client leaders on group strategy and strategic transformation initiatives.
Kiran Boosam

Kiran Boosam

Vice President, Global Insurance Industry Strategy and Portfolio Leader, Capgemini Financial Services
Kiran leads the global insurance strategy and portfolio for Capgemini Financial Services. A P&C and life insurance expert, he assesses industry dynamics and shapes innovative solutions for the Insurance CXOs, leveraging the power of the Capgemini Group, external ecosystems, and emerging technology.

Lotfi Baccouche

Co-lead of Insurance Practice, Capgemini Invent
Lotfi Baccouche is co-leading Capgemini Invent insurance practice globally. He advises major insurance firms on business strategy and operating models. He supports insurance firms in improving their operational efficiencies and risk profiles by developing and implementing technologically enabled solutions.
Thierry Loras

Thierry Loras

Head of Insurance Practice for Continental Europe
Thierry Loras leads the Insurance Practice for Continental Europe at Capgemini. He oversees 200+ insurance specialists across France, Belgium, Netherlands, and Germany. He has more than 19 years of experience in Insurance, specializing in business and IT transformations and complex program management, putting strategy into actions, enabling performance with tech.

Elias Ghanem

Global Head of Capgemini Research Institute for Financial Services
Elias Ghanem leads Capgemini’s global portfolio of financial services thought leadership. He oversees a team of strategy consultants and sector analysts who deliver market insights to help clients build future-proofing strategies. He has more than 25 years of financial services experience, focusing on win-win collaboration between incumbents and startups.

Luca Russignan

Head of Insurance and Deputy Head of Capgemini Research Institute for Financial Services
Luca Russignan is an insurance expert with more than 15 years of experience with industry-leading consultancies and insurers. At Capgemini, he enables CxO conversations in the insurance sector through data-driven thought leadership to shape insurance business strategy.

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    Frequently asked questions 

    1. How being customer centric helps property and casualty insurers?
    Customer centric insurers can unlock new revenue streams and bolster customer loyalty by offering personalized products and value-added services like real-time alerts and predictive maintenance, positioning themselves as risk preventers versus simple claim processors.

    2. What benefits can property and casualty insurance underwriters achieve through underwriting workbenches?
    Underwriting workbenches enable real-time access to relevant data on a unified platform and streamline processes for underwriters struggling with data integration. Commercial insurers can make informed decisions and price policies appropriately. Additionally, artificial intelligence and automation capabilities embedded in workbenches significantly bolster operational efficiency and customer experience by helping commercial insurers swiftly draft policies, reduce response times, and automate broker communication.

    3. How can digital tools augment broker and agent capabilities in property and casualty insurance?
    Digital tools like policy management systems, claims processing software, and Customer Relationship Management (CRM) platforms reduce administrative tasks and allow agents to focus on sales and policyholder relationships that boost productivity and customer satisfaction. Data analytics tools help agents offer policyholders personalized advice that boosts insurers’ market position and customer loyalty.

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