As we step into 2025, the insurance industry continues to evolve, driven by advancements in technology, shifting consumer needs and a growing emphasis on sustainability and personalization. Staying informed about these trends can help you make smarter decisions about your coverage and ensure you’re prepared for the future. Here are the key trends we’re keeping an eye on this year:
Increased Adoption of Usage-Based Insurance (UBI)
Usage-based insurance, particularly for auto coverage, is becoming increasingly popular. By using telematics technology, insurers can tailor premiums based on driving habits, mileage and behavior. This approach rewards safe drivers and aligns costs more closely with actual risk.
What this means for you: If you drive less or practice safe driving, you could see significant savings on your auto insurance. Many carriers add a discount at inception that could continue based on your driving habits.
The Rise of Embedded Insurance
Embedded insurance—coverage offered seamlessly when purchasing a product or service—is gaining momentum. For instance, when you book a flight or buy a new gadget, insurance options are often integrated into the checkout process.
What this means for you: You’ll have more opportunities to secure convenient, tailored coverage for specific purchases without needing a separate policy – BUT – if you are offered embedded insurance at an additional cost – it is also important to evaluate whether current coverages or endorsements already provide protection. We can help!
Focus on Climate Resilience
With climate change intensifying the frequency and severity of natural disasters, insurers are adapting their offerings. Expect expanded options for flood, wildfire, extreme weather coverage, and discounts for adopting eco-friendly practices or fortifying your home against natural hazards in some markets – in others – the inherent impact of these natural disasters and exposures may bring impactful increases by all carriers as the market hardens.
What this means for you: Consider reviewing your current coverage to ensure it meets the needs of today’s climate realities.
Greater Emphasis on Cybersecurity Insurance
As cyberattacks become more prevalent, businesses and individuals seek protection against data breaches and identity theft. Cybersecurity insurance policies are evolving to address these risks, with more affordable and accessible options for personal coverage.
What this means for you: If you’re worried about online threats, explore adding cybersecurity insurance to your portfolio.
Personalization Through Artificial Intelligence (AI)
Insurers are leveraging AI to create highly customized policies that reflect individual lifestyles and preferences. From AI-powered chatbots simplifying the claims process to advanced analytics identifying coverage gaps, technology is enhancing the customer experience.
What this means for you: You’ll have access to more personalized and efficient service, ensuring you get exactly the coverage you need.
Enhanced Accessibility and Inclusivity
The industry is making strides in creating more inclusive products that cater to diverse demographics, including historically underserved communities. This includes microinsurance products, which offer affordable, limited-coverage policies, and initiatives that simplify the language and accessibility of policies.
What this means for you: You may find new, cost-effective options tailored to your unique needs, making insurance more accessible than ever.
Bundling for Savings
The trend of bundling insurance policies—combining home, auto, and life insurance for a single provider—continues to grow and is important to make sure that all of your household needs are covered! Bundling not only streamlines your coverage but can also result in significant discounts.
What this means for you: If you haven’t reviewed your policies recently, bundling could be a great way to save money while simplifying your insurance portfolio.
At Howard Hanna Insurance, we’re committed to helping you navigate these trends and find the best coverage for your needs. If you have questions or want to explore how these changes might affect your policies, our team is here to help. Let’s make 2025 a year of confidence, security, and savings!
