Big changes are coming to the Life & Annuity industry in 2025, driven by fast-moving technology, shifting demographics, and rising consumer expectations. According to Swiss Re, global life insurance premiums are expected to grow by 3% a year in 2025 and 2026—more than double the average growth of the last ten years. In this rapidly changing environment, keeping up isn’t just helpful—it’s essential.
One of the biggest game changers? Generative AI (Gen AI) and the growing use of digital data. These tools are making underwriting faster, smarter, and more efficient. At the same time, insurers are leaning more into technology to connect with customers in meaningful ways, build trust, and deliver better experiences.
As we look ahead, these underwriting trends show what life insurers will need to focus on to stay competitive and meet the needs of tomorrow’s policyholders.
1. Generative AI Will Take Center Stage in Underwriting
Get ready—Generative AI (Gen AI) is about to make a huge splash in life insurance underwriting. It’s not just a buzzword anymore. As insurers look for smarter, faster ways to assess risk, Gen AI is stepping up in a big way. It can process tons of data—from neatly organized spreadsheets to messy documents—and turn it into useful insights in seconds.
In fact, according to Gartner, life insurers are shifting away from old-school automation tools and rules-based systems. Instead, they’re now focused on predictive analytics, artificial intelligence, and third-party data to improve how they score and understand risk.
One of the coolest parts? Gen AI doesn’t just help crunch numbers—it supports real decision-making. It helps underwriters quickly gather and analyze the data they need, making the entire process faster and more accurate. This doesn’t just benefit insurers—it also means quicker responses and better service for customers.
Some platforms, like Accenture’s Life Insurance & Annuity Platform (ALIP), are already ahead of the game, offering built-in Gen AI tools for underwriting. So, if 2024 was about exploring the possibilities, 2025 is shaping up to be the year of real-world implementation.
2. Generative AI Will Make Customer and Agent Interactions Smarter and Smoother
Today’s customers expect quick, helpful, and personalized service—and insurers are stepping up to meet those expectations with the help of generative AI. As more digital-savvy consumers enter the market, companies are investing in smarter platforms that offer real-time feedback, tailored recommendations, and even educational support right when it’s needed.
Last year, we started to see how gen AI could bring insurers, agents, and customers closer together. Now in 2025, that vision is becoming a reality. With gen AI-powered virtual assistants on the rise, it’s easier than ever for customers to get answers, find the right products, and enjoy a more personal, satisfying experience. And that kind of service builds loyalty.
But the impact isn’t limited to customers. These AI tools are also transforming how agents and underwriters work together behind the scenes. What used to take a few back-and-forth emails or phone calls can now be handled instantly through smarter internal communication tools. That means agents can spend more time supporting clients—and less time chasing paperwork.
We’re also seeing underwriters gain new tools to help manage requirement orders and take actions more quickly. In short, AI is making every interaction—from the first question to the final decision—more efficient and connected for everyone involved.
3. Plug-and-Play Vendor Data Will Become the New Normal
In 2025, life insurers won’t just be dipping their toes into digital transformation—they’ll be diving in headfirst. One of the biggest shifts happening right now is the move toward seamlessly integrating vendor data into the underwriting process. With over 80 vendors offering tools like AI models, automation systems, and predictive analytics, it’s clear that no insurer can afford to go it alone anymore.
To stay competitive, companies will need a smart, well-rounded vendor strategy that brings all of these moving parts together. From streamlining risk assessments to automating decision-making, these external tools are quickly becoming essential for faster and more accurate underwriting. And let’s be honest—nobody wants to be stuck behind while the rest of the industry speeds ahead.
That said, it’s not all smooth sailing just yet. Challenges like integrating with older systems, tackling AI bias, and automating complex decisions still need to be addressed. That’s where CIOs and tech leaders play a key role—supporting underwriters, measuring the real impact of automation, and making sure everyone is trained up and confident using these new tools.
The bottom line? This isn’t some far-off future. These capabilities are already here, and they’re only getting better. The insurers who take action now—who embrace this new, connected ecosystem—are going to be the ones leading the pack.
If you’re ready to talk about how to bring these innovations into your business, I’d love to help. Let’s chat about what’s possible and start building a roadmap that fits your unique goals.
