How insurtech is disrupting the traditional insurance model:

Insurtech has been experiencing turbulence with new technologies entering the market. Now, the global insurtech market is expected to grow at a CAGR of 52.7% by 2030, marking this shift to digital transformation. This is a way for insurance companies to innovate new products and ensure seamless customer communication. Why? Customer expectations are rising at an unprecedented rate because of new trends. Recent research found that 74% of insurance customers today want to interact digitally.

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At the same time, companies already using technologies such as artificial intelligence, the Internet of Things or robotic process automation in insurance services say the cost of processing claims and underwriting experience has been reduced to 30-50%, indicating the potential for change.

This blog outlines the key trends in InsurTech transforming the insurance industry:

Five insurance technology advancements in 2025

The insurance industry has long been a pillar of economic progress and growth, and today, technology remains a key enabler of this growth and enhanced business development. So, let’s turn to the main insurtech trends of 2025 and analyze how they meet the requirements of insurance companies and the practices they implement.

1. A new era of predictive analysis and risk management

Risk management is undergoing significant changes due to advances in predictive analytics, which enable insurance companies to make better decisions and increase customer satisfaction related to claims processing. It is truly revolutionary because it relies on large amounts of information, which is the strength of insurance companies – predicting risk levels with high accuracy.

For example, some top insurance companies have digitally collected more than 1,500 variables for algorithmic analysis because it can provide accurate risk assessments compared to traditional methods. This allows insurance companies to minimize risks and deliver products in the most accurate manner.

By using advanced analytics tools, insurers can identify possible risks in advance, helping to improve the underwriting process and make claims handling more flexible. It is not only a way to empower members of an organization but also a tool to increase customer confidence due to the transparency of actions taken.

2. Automated underwriting and accurate risk prediction

With the help of AI-based predictive models, insurance companies can quickly evaluate large amounts of data to facilitate the underwriting process. Predictive analytics organizes large historical data sets about claimants, and through pattern matching and correlation, insurance companies can more easily measure risk levels. This not only saves time in underwriting the policy but also eliminates the possibility of errors due to minimal human interference. insurance solutions Empowering insurance companies to leverage accurate data to make informed decisions, enhance collaboration with customers and stakeholders, and stay ahead of the competitive landscape.

Each of the above-mentioned technologies is gradually being adopted by the insurance industry, and as a result, insurance providers are seeing market advantages due to superior ratings for accurate risk analysis.

3. Minimize risk with advanced analytics

Tools in 2025 will help insurers manage risk more proactively than the year before. Insurers can also anticipate and prevent events that could lead to risk, rather than just responding to risks that affect their company. The information obtained from predictive models includes characteristics that define claims or losses that are likely to occur; through strategies to minimize risk, insurance companies can take deterrent actions.

This preventive approach can lead to better financial outcomes and enhance the insurance company’s reputation for reliability and risk preparedness. As a result, insurers can better manage reinvestment risk within their portfolios, improve the identification of loss reserves and offer policies that are perfectly tailored to customer needs.

4. Digital transformation: low-code and no-code platforms

In 2025, low-code/no-code platforms will become an indispensable enabler of digital transformation in the insurance industry. These platforms enable insurance companies to quickly prototype applications with relatively little input from professional IT staff, allowing organizations to accelerate the delivery of new products and services. The benefits are far-reaching: reduced development costs, faster time to market and immediate response to market customer needs.

Take Sapiens International Corporation, for example: they launched a cloud-centric platform bundled with low-code solutions to give insurance companies the weapons they need to adapt quickly. He said this enables insurers to improve claims processing, drive new business, accelerate policy renewals and provide better digital services to customers, while cutting expenses and driving innovation.

5. Enhance customer confidence and legal requirements

On the one hand, the insurance industry is being revolutionized by the adoption of big data, predictive analytics, and automation, but on the other hand, customer trust and compliance have become even more important. For insurance companies, the use of these technologies cannot be a luxury, but a necessity to support efficiency. At the same time, ensure you protect customer information and comply with emerging regulatory requirements. The key benefit of predictive analytics for insurance companies is the ability to ensure transparent, data-based risk assessment and further enhance customer trust in policies.

Conclusion: Ensuring insurance markets are conducive to innovation

Rather than rushing to innovate processes, the insurance industry has opted for a slow and steady approach. Until the territory started to change. Likewise, as customers witness the emergence of digital environments in other industries through accelerated digitalization processes, they are demanding the same from the insurance market. There is no greater need for innovation than today.