As insurers and Managing General Agents (MGAs) look ahead to 2025, they must contend with a variety of evolving challenges, from navigating more complex regulations to adjusting to shifting customer behaviours.
Our industry is facing a rapidly changing landscape, with many of these challenges are influenced by the ongoing cost of living crisis which is affecting both insurers and their customers.
But to help navigate these challenges as much as possible, we’re exploring 5 key call outs for Insurers and MGAs in 2025, and deep diving into how our team at S&G Response is positioned to provide support in these areas.
1. Regulatory Compliance and Evolving Legislation
The insurance industry is no stranger to regulatory scrutiny, but in 2025, this challenge is set to intensify.
With increasing pressures from both national and international regulators, Insurers and MGAs must adapt quickly to new rules governing data protection, claims handling and emerging risks like cyber insurance.
However, these regulations are often complex and require legal and operational adjustments to stay compliant, and any failure to do so can result in severe penalties or reputational damage.
What’s more, as governments implement stricter policies, Insurers face growing pressure to manage the increased costs of compliance, and the cost-of-living crisis has added an extra layer of complexity too, as businesses and consumers alike are struggling to keep up with rising living costs.
This financial strain can make it harder for insurers to manage compliance-related investments, while also maintaining their core operations.
How S&G Can Help:
S&G Response offers a comprehensive approach to navigating regulatory challenges, and we always keep our clients informed about the latest changes in legislation to ensure that their claims processes are aligned with evolving requirements.
To help, our experts are skilled in understanding the intricacies of compliance, from fraud prevention to the integration of regulatory mandates into day-to-day operations, and by partnering with S&G, Insurers can be assured that they are always one step ahead of regulatory changes, minimising risks and ensuring compliance, even as financial pressures grow.
2. Fraud Prevention and Detection
Fraud remains a major issue for the insurance industry, with claims fraud becoming increasingly sophisticated and fraudsters exploiting weaknesses in claims systems such as by using more advanced technology to create fake claims or manipulate data.
In truth, the cost of fraud is rising, and it’s no longer just about identifying obvious red flags. Now, Insurers must be proactive in detecting complex fraud schemes early in the claims process to avoid significant financial losses.
But in addition to these challenges, many customers are facing financial strain due to the ongoing cost of living crisis too as energy, fuel and everyday living costs rise, leaving some customers more motivated to fabricate claims or exaggerate the extent of damage to cover the cost of repairs or other expenses.
How S&G can help:
At S&G Response, we provide expert fraud detection solutions that go beyond surface-level checks, and our team is skilled in using advanced forensic tools and techniques to identify suspicious patterns and prevent fraudulent claims from slipping through the cracks.
By employing a combination of human expertise and innovative technology, we offer Insurers a comprehensive fraud detection service that ensures claims are legitimate before they are processed. Plus, our team can work with Insurers to provide additional layers of scrutiny where customers may be under financial stress, helping to detect potential fraud more effectively.
3. Rising Claims Costs
One of the most pressing concerns for Insurers in 2025 will be the rising cost of claims, as this is a direct result of several factors such as extreme weather events driven by climate change, escalating repair costs and the overall economic climate.
The ongoing cost of living crisis, combined with rising energy prices and fuel costs, is increasing the financial strain on individuals and businesses alike, which for Insurers, means higher claims payouts, especially when customers are unable to afford the necessary repairs or replacements.
As well as this, financial pressures are likely to encourage many customers to put off necessary work or repairs, despite the fact that claims can often be more severe when finally reported.
For example, where delayed car repairs can result in more extensive damage, and deferred home repairs may lead to more costly and time-consuming claims.
How S&G Can Help:
S&G’s claims management services are designed to control rising costs without sacrificing the quality of service, and our team is experienced in managing the complexities of high-cost claims, especially when customers delay reporting damage due to financial concerns.
No matter what, we ensure that claims are processed quickly and efficiently, reducing unnecessary delays and costs associated with repairs, and our expert network of repairers works to keep costs down, while our technology streamlines the entire claims process, enabling insurers to manage rising costs without compromising on customer satisfaction.
By using our efficient claims management system, Insurers can mitigate the financial strain caused by rising claims costs, all while maintaining the high standard of service their customers expect.
4. Customer Expectations and Digital Transformation
As customers become increasingly tech-savvy, their expectations from Insurers are evolving, and in 2025, customers will expect quick, seamless, and transparent claims processes.
Now in fact, many expect to manage their claims through digital platforms, tracking their claim status and receiving updates in real-time, however, many insurers are still using legacy systems that are not well-equipped to handle this level of customer demand.
Again, the financial strain caused by the cost-of-living crisis has heightened customer expectations here, as consumers are more reluctant than ever to part with their money, and many are seeking convenience and value in their insurance providers.
This means that if Insurers are not able to offer a fast, hassle-free claims experience, they risk losing customers to more digitally advanced competitors.
How S&G Can Help:
Our digital-first approach to claims management at S&G enables Insurers to offer a seamless and efficient service to their customers, with our user-friendly online platforms making it easy for users to file, track and manage their claims.
We also integrate with Insurers’ systems too, so that we can provide transparent and real-time updates and ensure customers are kept informed throughout the claims process.
By outsourcing claims management to S&G, Insurers can streamline their processes and improve the overall customer experience, enhancing loyalty and retention even in a tough economic climate – something which is essential as Insurers move into 2025 and their customers expect quick resolutions and digital solutions.
5. Talent Shortage and Workforce Management
Unfortunately, the insurance industry is set to grapple with a talent shortage, particularly in technical roles and claims management in 2025, and the increasing complexity of claims, along with the growing reliance on modern technologies, will require a highly skilled workforce.
This will pose a significant challenge as Insurers and MGAs may struggle to find and retain the talent they need to maintain high service levels.
Additionally, many claims require a combination of technical knowledge and personal insight as well – something that only the exact right recruits will possess.
How S&G Can Help:
S&G Response offers Insurers a valuable solution to workforce challenges by providing access to a skilled and experienced team of claims handlers and experts, and by outsourcing claims management to us, Insurers gain access to a pool of qualified professionals without the overheads associated with recruitment, training and retention.
Tackle 2025’s Challenges With S&G Response…
The challenges to come in 2025 are multifaceted, but with our expert services, cutting-edge technology and tailored solutions, Insurers and MGAs can stay ahead of the curve and meet the challenges of the future with confidence.
At S&G Response, we’re not just about claims; we’re committed to providing you with a hassle-free and top-notch experience from start to finish.
We’re here to help, and it’s our job to help your business thrive in 2025.
To find out more, reach out to our team today.
