2025 trends for data analytics for insurance

Using data to gain a competitive advantage seems to be a hot business topic these days, but hasn’t analyzing data always been the norm for the insurance industry?

While it’s true the industry has relied on various data points to evaluate risks, set prices and sell, data siloing has been the norm. For example, underwriters, actuaries and new business development teams might be working from different data sources and using different parameters to measure and make business decisions. But now, with an explosion in the volume of accessible data, the way the industry uses data has been transformed, enabling more informed and precise decision-making.

So, in the fast-paced day-to-day of 2025, how is data analytics evolving for insurance and why does it matter to you as an insurance agent? This article tackles those questions and looks at emerging trends to see what lies ahead.

Why is data analytics important for the insurance industry?

There are many practical applications for data analytics in insurance. These include mapping risks, setting pricing, targeting prospects, tracking sales and service, analyzing claims, detecting fraud and studying consumer behavior. A simple illustration of how insurance companies are using data analytics in property insurance is the monitoring of weather patterns, claims history and construction costs to model risks and set pricing. Access to enriched data associated with a geographic location can also help an agent meet the needs of customers in real time, such as recommending flood insurance to a new homeowner.

As such, data analytics has become the backbone of innovation and efficiency within the insurance industry because the insight it offers can be used to scale value to everyone under the insurance umbrella: the insurer, the agency and the customer.

How can insurance agents leverage data analytics for business growth?

Employing data analytics opens the door for agencies to begin benefitting from greater transparency and insights to drive decision making. If using data analytics seems too complex or out of reach, consider the following actionable, low-barrier ways agents can get started by leveraging their Agency Management System (AMS) and Customer Relationship Management (CRM) capabilities:

• Pair records with third-party sources: To enhance your prospect and client records for quoting, cross-selling and upselling, explore the agency’s system of record’s pairing capabilities to third-party data sources. For example, pulling in geographic information, such as weather and geo-specific risk factors, can be paired with prospect and customer records to deliver customized personal and commercial lines property coverage solutions based on those risks. This could not only help identify coverage gaps, but  spotlight new opportunities within your client base.
• Leverage marketing reporting: To develop effective marketing campaigns targeting new prospects and convert leads in the pipeline, consider setting up reporting from the system of record to harness lead generation data. By tracing a customer’s journey from their initial contact to final sale, you gather invaluable data to inform and optimize future marketing strategies.
• Track and aggregate the data of online reviews: To gauge customer satisfaction, automatically track online reviews and aggregate that data over time. This critical feedback will highlight areas of improvement and validate successful practices.
• Automate sales reporting: To gain producer insight, set up automated reporting to track sales activities and conversions. Make use of these insights to devise automated rules for lead assignments, considering factors such as geographic location, required expertise, and potential deal value.
• Set up automated triggers: To support customer service activities, set up automated triggers based on the data in the system of record to identify and alert staff to reach out to clients to check up on claims, explore cross-sell and upsell opportunities, or strengthen at-risk relationships.

By integrating the power of data analytics into your insurance agency operations, you unlock limitless possibilities, making your business more customer-centric, efficient, and profitable.

Data analytics has become a vital tool for understanding customer needs, streamlining processes, and staying competitive. As an agent, knowing how to leverage these insights can make all the difference in delivering better solutions and growing your business.

Watch the webinar: Using data and analytics to make informed decisions for your business

2025 data analytics trends for insurance

Continued advancements in data availability and technology are chief drivers of the scale and speed at which businesses can use data analytics to their advantage today. The following trends are likely to shape the industry in the short term:

Fraud prediction—Using business rules and red flags to detect insurance fraud isn’t working, costing businesses and consumers an estimated $308.6 billion a year.¹ Initiatives that drive the use of predictive modeling, link analysis (the evaluation of how data is connected) and artificial intelligence (AI) to prevent fraud before it happens is top of mind for insurance companies.

Niche communications with marketing automation—With the ability to target specific clients, you can tailor your content to resonate with their needs. For example, from welcoming them to the agency and sharing risk prevention tips, to celebrating milestones. Or, providing educational content about policy options, like considerations for resizing empty nesters. With continued measurement data you can then utilize retargeting campaigns to stay top-of-mind with clients through an informed and automated marketing journey.

Personalized user experiences—With access to exponentially increasing sources of third-party data from IoT devices and the wider adoption of machine learning, chatbots and AI, insurers will continue to advance ways to turn the customer experience from a one-size-fits-all approach to a seamless automated journey where products are personalized, pricing takes into consideration behavioral data and claims can be settled quickly.

Predictive analytics—Predictive analytics has been a game-changer for the industry with the ability to make data-driven decisions by forecasting trends, identifying risks, and tailoring offerings more efficiently. In 2025, leveraging predictive analytics will continue to be critical as agents seek to offer personalized coverage that match the unique needs of each client. In addition, by analyzing data patterns and customer behavior, insurance agents can predict which clients might be at risk of letting their policies lapse and proactively engage them with retention strategies.

The insights from these data and analytic trends reinforce a customer-centric approach, from seamless and tailored sales and service experiences to risk prevention. Nationwide continues valuable partnerships and investments to stay on the forefront of these trends.

Nationwide partnerships include:

• Investing in climate-tech company Mitiga Solutions. The company combines scientific models with technology to better evaluate the impact of natural hazards, helping industries like insurance understand and address the risks and uncertainties of climate change.
• With our partnership with Insurance Institute for Business and Home Safety (IBHS), we’re leading in building protection and setting new resilience standards. IBHS analyzes data from experiments conducted at their research center as well as real-world weather events. The data is used to refine their building standards, including their FORTIFIED program.

Personal Lines

• Ting helps prevent electrical fires and alerts homeowners of hazards. Nationwide’s partnership has prevented close to 800 potential home fires.
• Leakbot is a device that helps homeowners find water leaks and fix them before turning into a major problem.

E&S/Specialty

• Investing in the award-winning AI platform, CLARAty.ai, which uses predictive AI, generative AI, and large language models to extract claims data to deliver concise case summaries, predictive alerts, and actionable recommendations to claims associates to inform data-driven decisions.
• We’ve teamed up with CompScience to offer WC insurance and their Intelligent Safety Platform available to small to large business owners to predict and prevent workplace injuries.

Commercial Lines

• Partnering with HSB to offer their Meshify Defender sensor to provide commercial clients an opportunity to detect water leaks from plumbing, water heaters, HVAC systems boiler and other sources.
• For commercial and ag clients, SambaSafety provides a comprehensive platform for monitoring motor vehicle record violations, driver training, helping fleet managers streamline operations and improve driver safety.

Ag

• Razor Tracking offers tailored solutions to improve operational and safety efficiency, for small family farms to large agribusiness to help optimize fleet safety and performance.
• Using HAYTECH, through digital hay probes and a cloud-based platform, producers are able to monitor hay bale temperatures in real time.

The future of data analytics

As data and analytics trends continue to evolve, combining predictive power and personalization, remember these trends are more than numbers. Armed with the right data, you can guide your business toward informed decision-making and refined risk management that can ultimately enhance your client relationships. Taking time to understand these trends will help you unlock opportunities for differentiating your business.