Munich Re Identifies Key Insurance Technology Trends in 2025 Report

In its newly released Tech Trend Radar 2025, Munich Re, in collaboration with ERGO, identifies 36 emerging technology trends expected to shape the insurance industry in the coming year. According to Munich Re, the radar aims to help insurers sharpen strategic focus, assess innovation maturity, and explore relevant use cases across five core fields: Data & AI, Healthy Human, Connected Experience, Cyber & Crypto, and Redefining Industries.

Per the report, artificial intelligence (AI) remains a cornerstone of innovation, with subfields such as generative AI, AI agents, AI democratization, and AI governance gaining traction. These developments are already transforming underwriting, claims management, and customer engagement, though they also present governance and ethical challenges.

According to the report, insurers are paying increasing attention to spatial intelligence, a technology fueled by satellite data, AI, and geospatial analytics. Spatial intelligence enables more accurate risk assessments, especially in catastrophe-prone areas, and supports real-time property evaluation and pricing improvements.

Per Munich Re, the potential emergence of artificial general intelligence (AGI) represents another critical milestone. The report outlines five progressive AI levels, noting that the industry currently operates at level three, with AI agents capable of autonomous task execution. However, it cautions that achieving higher levels, including innovation and full organizational capability, remains speculative and requires extensive safeguards.

According to Munich Re, the lack of standardized data exchange formats is a growing barrier to industry efficiency. Insurance application programming interface standardization is highlighted as a high-impact solution that could streamline data sharing across the value chain, reduce operational friction, and enable scalable innovation.

Quantum computing is also included in the radar as a trend under assessment. Munich Re notes that while commercial use remains years away, early applications, particularly in risk modeling and financial simulations, could soon deliver tangible benefits to insurers.

Per the report, synthetic data presents a powerful solution for privacy-preserving data analysis. It allows insurers to simulate rare risk scenarios, train AI models, and improve fraud detection capabilities while safeguarding sensitive information.

Finally, Munich Re emphasizes that the interplay between offensive and defensive AI governance is vital. According to the report, adaptive frameworks will be necessary to remain compliant with evolving global regulations while encouraging innovation across insurance functions.