AI to Reshape the Insurance Landscape, Says Deloitte Report

Deloitte’s 2025 Financial Services Industry Predictions report forecasts a seismic shift across global financial services and the insurance landscape. 

With technology, data, and customer expectations rapidly evolving, the report outlines that embracing adaptability and innovation will be key for businesses to be in a position of leadership over the next five years.

Possible Rise of ‘Predict and Prevent’ Models

The report suggests that technological disruption may result in ‘predict and prevent’ insurance models where the insurance sector is pushed to become more proactive in its approach.

It’s likely that insurers will increasingly offer services that can help customers prevent losses before they occur, leveraging advancements in technology such as smart home devices and generative AI.

“As the potential to provide alternative services matures and expands, and customers increasingly demand predict and prevent offerings, we expect monetised, fee-based services to represent a growing proportion of insurer revenues,” the report says.

Not only could this diversify revenue streams, but it may also strengthen customer trust by enhancing resilience and reducing claims frequency.

AI and Insurance Fraud Detection

AI’s growing role in fraud detection also promises to reshape operations. As fraud remains a significant cost for insurers, the deployment of AI-driven, real-time analytics across the claims lifecycle could generate major savings.

The report’s predictions highlight that that insurance sector globally is undergoing an evolutionary phase. Customer-centric innovation, embracing emerging technology, and redefining the nature of risk are all factors that will play a part in this evolution.

You can read the full Deloitte report here.