The insurance industry closes 2025 with momentum -- and some unfinished business.
Claims severity pressures, driven by sustained inflation in labor, materials, and litigation, remain the dominant operational challenge for most P&C carriers. Carriers that have invested in robust salvage, subrogation, and vendor management programs are weathering that pressure better than those that have not.
Technology adoption has moved from aspirational to operational, but integration debt -- the accumulation of disconnected tools and data silos -- is emerging as the next major challenge for IT and operations leaders.
The carriers positioned best for 2026 are those that have connected their technology investments to measurable business outcomes: faster cycle times, better loss ratios, and improved policyholder satisfaction. Happy New Year to the entire insurance community.
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