Dear Customers, Partners, and Friends,
As we reflect on the milestones achieved in 2024 and extend our thanks to our incredible customers and partners, it’s evident that this past year was one of immense transformation for ForMotiv and the insurance industry at large. The landscape continued to evolve, presenting both challenges and opportunities that have laid the groundwork for an even more dynamic 2025.
Around this time last year, I shared the major themes our team anticipated for 2024, and like many forward-looking predictions, some came true and some did not. As the late great Charlie Munger says (and I paraphrase), forecasting the market is as hit-or-miss as forecasting the weather.
One theme that has come to fruition (and we’re very happy about it) is carriers using Behavioral Intelligence for real-time decisioning and risk management have become integral to the strategies of leading insurers worldwide. Let’s take a moment to reflect on what stood out in 2024 before diving into what we think will shape 2025.
Looking Back at 2024…
1. Behavioral Intelligence as a Necessity
Behavioral data has solidified its place as a must-have for insurers. Carriers increasingly relied on behavioral data to identify non-disclosure, manage risk, and improve underwriting. From improving bind rates to mitigating fraud, the adoption of solutions like ForMotiv’s accelerated significantly, proving that understanding customer intent is no longer optional but essential. We like this trend.
2. Generative AI’s Impact
2024 saw the exploration of generative AI and large language models (LLMs) into core insurance workflows. By augmenting back-office underwriting and claims processes, these technologies have the potential to empower carriers to make faster, smarter decisions. While there is still a way to determine where these nascent technologies best fit the industry, the early signs are promising. We discuss this and the likely regulatory hurdles carriers will need to jump through in more depth here.
3. Massive Increases to Auto and Home Rates
While we anticipated insurance rates to increase across the board, we certainly did not think that insurance premiums would increase in the manner they did in 2024. A Bankrate report showed car insurance rates increased by 26% across the US in 2024. Property rates followed suit, and many carriers stopped writing and did not renew business in certain high-risk states like California.
4. Tightened Focus on Risk and Fraud
As application veracity continued to decline, insurers doubled down on fraud prevention and underwriting efficiency. This was especially important as carriers worked to maintain profitability while navigating a more digitally driven environment. ForMotiv’s solutions for detecting misrepresentation and rate evasion became critical tools for ensuring the integrity of carriers’ books of business.
5. The Profitability vs. Growth Pendulum Swung Yet Again
In 2022 and 2023, economic uncertainty prompted carriers to prioritize profitability and risk management over aggressive growth. This trend reinforced the importance of data-driven decision-making. As profitability soared in late 2023 and throughout 2024, growth has come back with a vengeance.
Looking Ahead to 2025…
As we enter 2025, several emerging themes stand out that will define the next phase of the insurance industry:
1. Deeper Integration of AI and Human Intelligence
In 2025, the industry will continue to explore the potential of large language models (LLMs), and we expect to see the early stages of practical utilization begin to emerge. Carriers are likely to experiment with integrating LLMs into workflows such as underwriting and claims management processes, though it will likely be many years before carriers can make decisions with these technologies due to regulatory concerns. We do NOT anticipate LLMs directly touching customers but do expect them to continue to augment internal back-office processes and employees’ workflows.
2. Hyper-Personalization to Drive Growth in Digital Experiences
Customers expect personalized, relevant interactions at every touchpoint. To provide this, carriers need to understand the intent of the applicant and use all third-party data sources at their disposal. In an insurance market focused on increasing gross written premiums, ForMotiv’s Growth and Monetization Solutions are helping carriers understand the purchase intent and risk profile of their digital applicants to increase revenue.
3. Strengthened Fraud Detection and Prevention
Fraud will remain a persistent challenge, but advancements in behavioral analytics and predictive modeling will allow carriers to stay one step ahead. ForMotiv’s Solutions, such as our BOT and Ghost Broking Solutions, will continue to evolve to help our partners proactively detect and mitigate fraud without introducing unnecessary friction.
4. Scalability of Accelerated Underwriting in Life Insurance
The adoption of accelerated underwriting in life insurance will expand as insurers strive to provide instant decisions at scale. ForMotiv’s Non-Disclosure Solution will play a critical role in life insurance to help reduce mortality slippage in the accelerated underwriting populations.
A Commitment to Improvement
2024 was a year of great progress, and we are more determined than ever to build on that momentum. In the coming year, you can expect deeper insurance expertise embedded into our platform and enhanced solutions for P&C, small commercial, and life & health carriers.
On behalf of everyone at ForMotiv, thank you for your trust, partnership, and collaboration. Together, we’re shaping the future of insurance, and I’m excited to see what we can achieve in 2025.
Warm regards,
Bill Conners
CEO, ForMotiv