Artificial intelligence, environmental, social, and governance (ESG) considerations, and cyber risk management will define the insurance industry landscape in 2025, according to new research from GlobalData.
The data analytics firm's 2024 Emerging Trends Insurance Consumer Survey reveals strong consumer acceptance of AI tools, with 43% of global users comfortable using them for premium determinations. Chinese consumers show the highest acceptance of this technology, while Australians remain more hesitant.
"Enough consumers are already comfortable with AI tools that they can provide an effective channel of communication, thus reducing stress on phone lines and email accounts," said Ben Carey-Evans, GlobalData senior insurance analyst.
The research also highlights growing ESG importance, with 51.3% of global consumers believing insurers have a role in fighting climate change. While insurers currently maintain long-term ESG targets, few mainstream products focus specifically on sustainability.
Personal cyber insurance presents a significant growth opportunity, with 26.4% of consumers expressing interest. This rises to 36.7% among 18- to 24-year-olds, indicating strong potential for market expansion if insurers can balance competitive pricing with risk management.
The survey also reveals emerging opportunities in electric vehicle (EV) insurance, with 31.6% of combustion vehicle owners planning to transition to EVs within two years, and 67.7% within a decade. Additionally, 54.5% of consumers are open to purchasing insurance directly from manufacturers.
Internet of Things (IoT) technology offers another growth avenue, with 37.8% of global consumers using activity trackers daily.
"The shift towards EVs demands innovation in underwriting and risk assessment, while IoT offers a chance to enhance personalization through data-driven insights. By embracing these trends, insurers can tailor offerings, increase customer engagement, and stay competitive in a rapidly evolving market," Carey-Evans said.
The survey encompassed 5,520 respondents across 11 countries, with a minimum of 500 respondents per country.
What do you think of these latest findings revealing changing consumer preferences? Share your thoughts below.