As technology rapidly advances, customer expectations skyrocket and economic uncertainty looms, the insurance industry stands at a pivotal crossroads.

Compounding these issues, talent shortages persist as the pressure to attract and retain the next generation has never been higher. These factors will create both challenges and opportunities this year, and insurers that keep a close eye on these ongoing shifts will be poised to increase efficiencies, improve customer and agent experiences and scale their operations.

Insurers Set Sights on Growth

Insurers are turning their attention back to growth as the P/C market demonstrates signs of softening. While carriers haven’t necessarily needed to prioritize and invest in the agent experience in recent years because of business selectivity in the harder market, that is expected to reverse this year as insurers focus on new customer acquisition and expansion.

Now, as growth mode returns, insurers must focus on creating seamless, frictionless interactions with agents, ensuring faster response times and stronger support. The ultimate goal is clear – becoming the carrier of choice, building lasting relationships to drive loyalty and growth.

Glia’s survey of more than 500 P/C insurance agents on the carrier experience, titled The Independent Agent’s Report Card: 2024 Carrier Experience Survey, found that ease of doing business ranked alongside price as the number one factor for which carrier independent agents opt to place a policy.

The carriers who have strong online self-service capabilities, paired with digital support that matches agents’ communication preferences, will be poised to secure a greater share of business and hit their growth targets.

AI Evolves from Hype to Reality

While AI has been the buzzword in the industry for the past few years, the conversation is set to shift into something far more impactful this year. For many, last year was all about research and conducted proof-of-concepts, but this year will transition into widespread implementation and unlocking tangible value.

The insurers who strategically deploy AI to boost operational efficiencies and drive down costs will come out ahead. This isn’t about reducing headcount – it’s about optimizing processes and supercharging the productivity of existing teams.

Insurers who effectively embrace AI will also gain a competitive edge in the ongoing competition for talent, especially as younger generations increasingly prioritize technology-enabled, efficient workplaces. The early AI adopters already seeing the power of AI in their operations are freeing staff up from routine, repetitive tasks and providing them with more time for impactful work.

A Rise in Interaction Technology

Digital self-service capabilities for both customers and agents will continue to be a primary area of focus this year. After all, as expectations for speed and seamless support continue to rise, insurers will face mounting pressure to ensure every two-way interaction is right. The stakes are high as customer and agent loyalty are directly tied to how well insurers can deliver quick, effortless service and support.

As part of this prioritization of self-service technology, many insurers will opt to consolidate their tech stack, particularly within the contact center. It’s becoming increasingly clear that traditional, disjointed contact center infrastructure will simply no longer cut it. Siloed systems create staffing challenges, make unlocking data-driven insights challenging and create a customer experience that falls short of expectations.

The insurers that position themselves for success in 2025 will look to forgo fragmented, clunky solutions in favor of modern platforms that can solve multiple needs and enhance each service interaction. By unifying their technology stack, IT leaders will also be better positioned to better leverage the power of AI by enabling better data integration and analysis across the business.

Some of the key drivers for insurers looking to consolidate their tech stack in 2025 include, minimizing integration challenges, reducing vendor management complexity and simplifying the user experience for both employees and customers. This has tangible impact across the entire insurance value chain: underwriting, claims processing, customer service and beyond.

The insurance industry stands at the brink of a major transformation this year, fueled by sophisticated AI solutions, shifting market conditions and advanced customer interaction technologies. Insurers who embrace these shifts and invest in the right strategies to enhance the agent and customer experience will be able to not just survive but thrive. Those who take note of these trends and respond accordingly will be able to overcome talent challenges, drive new revenue and foster lasting agent and customer loyalty.