4 in 5 insurers plan to increase AI investment over next year

36% of respondents are also prioritising efforts to build trust.

About 77% of business and technology professionals in the insurance sector expect increased investment in AI over the next 12 months, whilst 73% anticipate a rise in spending on data and information management, according to a recent Forrester report.

A recent Forrester report has revealed that AI adoption and system modernisation are the top priorities for insurers in 2025 as they focus on driving commercial growth, enhancing brand reputation, and ensuring regulatory compliance. 

Revenue growth remains a key focus, with 63% of professionals prioritising customer acquisition, 50% focusing on customer retention, and 42% aiming to upsell or cross-sell products to existing clients.

Improving brand reputation is also essential, with 36% of respondents prioritising efforts to build trust, 30% working on enhancing digital brand experiences, and 27% increasing investments in brand and communication initiatives.  

Regulatory compliance remains a critical area, with 52% of professionals aligning culture and values with compliance priorities, 48% investing in governance, risk, and compliance (GRC) technologies, and 45% focusing on information security solutions. 

Indranil Bandyopadhyay, principal analyst at Forrester and lead author of the report, emphasised embracing technology, stating that AI and modernisation are vital for insurers to enhance customer experience, boost operational efficiency, and maintain compliance. 

He added that companies investing in these areas will be better positioned to achieve strategic goals and drive growth.