The insurance industry is set to be defined by the transformative impact of artificial intelligence (AI), environmental, social, and governance (ESG), and cyber risk management in 2025. As consumers increasingly embrace AI-driven solutions and express growing interest in personal cyber coverage, insurers face both challenges and significant opportunities to innovate, personalize offerings, and integrate emerging technologies like electric vehicles (EVs) and Internet of Things (IoT), says GlobalData, a leading data and analytics company.
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey* reveals that that global consumers are open to try AI tools in all areas of the value chain, do care about the issue of sustainability, and are interested in personal cyber insurance policies.
Our Survey highlights generally positive attitudes towards using AI tools to determine premiums, finding that 43% of global users are either quite or very comfortable using such tools. There is some variation from region to region—for example, Chinese consumers are clearly the most open to this technology, while Australians are least open—but insurers should be utilizing them in every geography.
Ben Carey-Evans, Senior Insurance Analyst at GlobalData, comments: “Enough consumers are already comfortable with AI tools that they can provide an effective (and 24/7) channel of communication, thus reducing stress on phone lines and email accounts.”
ESG is already a central part of insurers’ strategies, but this is expected to continue to grow and become more entrenched in policies over the next decade.
Carey-Evans explains: “As it stands insurers have relatively long-term targets and individual initiatives built around ESG and sustainability, but very few mainstream products and policies have an ESG focus. Consumer demand globally will be central in the insurance industry’s fight against climate change. We found that over half (51.3%) of global consumers believed insurers had a role to play in this aspect, while a further 20.6% were unsure.”
According to the survey, cyber insurance overall is undoubtedly one of the biggest themes in insurance, but personal cyber is far less prominent that commercial cyber. However, there does appear to be an opportunity here for insurers.
The survey revealed that 26.4% of consumers are interested in acquiring personal cyber insurance. Notably, this interest is particularly pronounced among 18–24-year-olds, where 36.7% would consider purchasing a personal cyber policy. This underscores the significant growth potential in this market, provided insurers can strike the right balance between competitive pricing and managing the inherent risks of a line that has proven challenging to underwrite.
Survey data shows that 31.6% of combustion vehicle owners plan to transition to EVs within two years, and 67.7% within the next decade. This shift, coupled with 54.5% of consumers open to buying insurance directly from manufacturers, presents both challenges and opportunities for insurers.
IoT enables insurers to collect personal data via connected devices, with notable applications in motor and health insurance. The survey found that 37.8% of global consumers have some form of activity tracker to monitor their health daily. This represents a huge opportunity for insurers to engage with these consumers and offer tailored rewards-based programs.
Carey-Evans concludes: “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.”
*GlobalData’s Emerging Trends Insurance Consumer Survey featured a panel of consumers aged 18+, with 5,520 respondents spread across 11 countries in different regions to identify global trends. There was a minimum of 500 respondents per country. It is GlobalData’s first-ever dedicated multi-market insurance consumer survey.
