With a projected compound annual growth rate (AGR) of almost 6%, according to Mordor Intelligence, the U.S. property and casualty (P&C) insurance market outlook for 2020-2025 looks robust. Technology initiatives in this sector are also ripe for investment, with industry watchers reporting that insurtech investment hit $7.4 billion during the first half of 2021. To offer competitive products and solutions, insurers are leveraging such emerging technologies as the internet of things (IoT) connected devices, cloud, blockchain and artificial intelligence (AI) technologies including robotic process automation (RPA). However, evolving risks, steep business competition, changing customer expectations, new regulations and aggressive newcomers are symptomatic of the U.S. P&C landscape. The slideshow above illustrates six factors that will significantly influence the U.S. P&C industry by 2025.

An evolving industry

The insurance market is changing, and to keep pace, insurers will have to address evolving customer needs while simultaneously focusing on concerns from regulators around data privacy. Investor interest in insurtech firms will grow as those firms become the primary source of industry innovation. To perk up digital nimbleness and augment functioning competence, insurers will need to expand use of the cloud for deploying core systems while also exploring technologies, like blockchain, to build a more integrated insurance ecosystem. As expectations continue to change, insurers must take on a customer-first approach, enhance products, streamline and simplify processes, and emphasize innovation and pragmatism to ensure growth and future readiness. Michael Parcelli is a senior vice president for Xceedance. He can be reached for further comment or information via email at [email protected]. See also:

• Over the horizon: A look at the insurance industry
• 7 key trends affecting 2021's hard insurance market
• Talent crisis will drive change in insurance