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How insurance will move with the times in 2025
The challenges posed by a changing climate, a focus on ESG, the battle to acquire and keep the best talent, changing customer expectations and the dramatic rise in digital and AI mean our world is changing faster than ever before. As an insurance intermediary in Malaysia we have close bonds with insurance companies, and they're facing some unique challenges.
In this post we take a deep dive into what PricewaterhouseCooper has to say about our sector's future. As the world's second-biggest professional services network, their predictions matter. Here's what they say the insurance sector needs to address to stay ahead in 2025 and beyond.
How trust and purpose are changing our world
Not so long ago insurance was simply transactional. Someone needs it, they buy it, and that's the end of the story. Now it's about more than simple transactions. Environmental, social and governance (ESG) and employee-related issues are inspiring insurers to re-think their long-term business strategies in line with a more responsible, kinder world.
PwC suggests five powerful trends influencing our industry, along with some vital essentials everyone in insurance will need to think about: the widening trust gap we're seeing in today's uncertain landscape, fast-evolving customer needs and preferences, the race towards AI and digital, climate change, how to be as sustainable as possible, plus the convergence, collaboration and competition everyone in our world faces.
How insurance companies can meet the challenges of the modern world
By fully engaging with today's digital ecosystems, insurers can pinpoint unique customer intelligence, which in turn makes it easier to create relevant products and services to fulfil the demands of our digital world.
With Malaysia determined to become a regional and international digital powerhouse, it's a change we'll all need to address. Maybe insurers can find ways to positively disrupt their distribution, re-engineering the value chain for the digital world and taking a digital view of everything from underwriting to claims.
Basically, digital excellence means a brighter future for us all. Which is why we're so proud of our popular cargo insurance app e-tgcinsure, which taps directly into the needs of freight forwarding customers to make their life a lot easier.
Embracing customer-centric ecosystems to create new value means first of all reimagining what customer value really means to insurers. They'll need to choose their priorities wisely and align then with their real-world capabilities. Building networks of trusted partners means it'll be easier to design products. It's exciting to know that intelligent digital collaborations can create real value for insurance buyers at every touch point.
Change management skills are essential when you want to move with the times, making things like transformation management and agile delivery a must. Take AI, which is developing so fast, taking a role in so many areas of our everyday life that insurance must keep up.
It's becoming more of a challenge to find the best people for insurance roles, and keep them. A positive, enjoyable, modern working culture is a must, which explains why we're seeing so many Malaysian companies of every kind making great efforts to improve the workplace and make the work-life balance better for employees. It's no surprise there's a powerful drive towards flexible working in our country.
Fast change like our sector and the world as whole are experiencing at the moment also mean employee skills need to keep up. Perhaps some insurers will be looking more closely at the gig economy and reimagining the role of HR. Putting ESG at the core of an insurance company elevates the status of ESG in the organisation in line with a trend so strong everyone is talking about it. Prioritising ESG could quickly become a competitive advantage for companies wanting to attract the best talent, as might putting social responsibility at the heart of the company's ethos, embedding ESG deeply into business strategy, and making sure the results are clear for everyone to see.
What do you think will change the most in 2025?
We're fascinated by the fast, dramatic impact AI is having on the business world right now, and we predict AI is going to drive the biggest changes in the insurance sector for 2025. But what do you think – and what changes would you like to see to make insurance work better for you, your family, and your business?
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