PwC’s November 3, 2025, report “Reinventing insurance: An industry beyond the tipping point” outlines how the insurance sector is undergoing significant transformation. The report describes a shift driven by interconnected risks, rapid technological capabilities, and changes in customer needs.
Emerging Pressures Reshape the Landscape
The report notes that insurers historically operated with modest change over long periods of time. That environment has shifted. Social, technological, economic, environmental, and political risks are now more volatile and interconnected. According to the report, 93 percent of insurance executives say key risks in financial services are interconnected and amplify one another.
This growing level of complexity makes it harder for insurers to cover increasingly frequent and severe events while operating in a capital-intensive sector.
Technology Enables New Operating Models
PwC highlights the expanding influence of technology on underwriting, claims, and customer engagement. Satellites, drones and sensors now supply real-time information that improves monitoring and supports more proactive risk-management approaches.
The report also describes the use of advanced AI capabilities, including agentic AI and deep learning, which allow carriers to process data related to behavior, underwriting, and operations faster and at lower cost.
The report notes that human oversight remains important. Many insurers hesitate to rely fully on AI due to concerns about accuracy and bias, leading to continued focus on responsible governance.
Shift Toward Customer-Centric Solutions
PwC identifies a movement away from product-centric approaches and toward holistic customer-centric offerings. The report cites rising consumer expectations and demographic shifts, including aging populations facing retirement affordability challenges.
New opportunities exist at the intersection of life, health, and wealth. Examples in the report include collaborative models that help individuals understand retirement spending, plan for coverage and investments, and maintain engagement across life stages. These approaches require insurers to adjust business models, operating structures, technology, and partnerships to support continuous and integrated service.
Capital Strategies and the Role of Private Credit
The report states that private credit has become more influential in investment strategies, especially for life and retirement providers. This trend is prompting insurers to evaluate their operating models, product mixes, and capital deployment in response to market conditions.
Indicators of an Inflection Point
PwC describes the industry as being beyond a tipping point. Although insurers have traditionally been slow to adopt transformation at scale, the report states that the disruptions experienced over the past 25 years have accelerated change.
The report notes that innovation and growth opportunities may become more attainable as carriers update their business and operating models and adopt new technologies and partnerships that align with customer needs.
Looking Ahead
According to the report, insurance organizations may need to reassess their roles as both protectors and enablers. This includes helping to prevent losses, supporting customers throughout life events, and expanding approaches to capital and collaboration. PwC concludes that these developments may signal the beginning of the industry’s next major period of reinvention.
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