In 2025, insurers will continue to pass on higher costs of rising claims expenses to customers. Continuing demand for tech and product innovation won’t bear much fruit, despite higher budgets. AI adoption will play a subordinate role to other business priorities. Insurers will increasingly rely on embedded and usage-based products to drive top-line growth and improve customer experience. Yet the benefit of these innovations won’t prevent some carriers from buckling under the pressure of higher underwriting losses in auto, forcing customers to go shopping for a new insurer. Here are our predictions for insurance in 2025.