After a couple of years of rising claims expenses, 2024 should see insurers return to greater profitability and stability as they continue to pass on the higher costs to customers and benefit from rising interest rates. This will result in moderate tech budget increases and a renewed appetite for tech and product innovation. While many carriers will chase the dream of embedded insurance and generative AI, these won’t have a substantial business impact next year. Climate adaptation, on the other hand, will become very real, as insurers scale back activities in the regions most affected by climate change and explore new types of heat-linked policies.