Insurance Agent Interests   02/06/2025 AIP RSS Icon

What’s in Store for Insurance Agents in 2025

By Jonathan Decker

What’s in Store for Insurance Agents in 2025

Staying aware of new opportunities and evolving risks is a proactive way for insurance agents to ensure their continued success in 2025. Each new year comes with a wave of changes, whether from our global economic market, regulatory action or possibilities brought to life by technological advances. The top 2025 insurance agent trends we expect to see are outlined below.

Economy and Politics: Government Overhaul and Geopolitical Tensions

Following the 2024 election, the U.S. has transitioned to Republican-controlled executive and legislative branches. Thousands of new federal government appointments and many regulatory changes will impact the insurance industry. Some forecasts are optimistic for business opportunities in the industry, while others indicate heightening global tensions could result in cost increases.

Domestic Optimism for Businesses

The new presidential administration of Donald J. Trump is expected to roll back regulations and enact significant tax breaks that may benefit businesses. Many industry leaders believe the new Trump administration may build on its historical support of corporations, which could help insurance firms. One expert says some of the regulatory relief promises made by leadership could be positive for independent agencies.

The claims made by the new administration could benefit the insurance industry by:

Skepticism Regarding Foreign Policy and Geopolitical Tensions

Global politics will likely remain tense throughout 2025. Both allies and adversaries of the U.S. are experiencing domestic unrest, and foreign relations in certain regions — Russia-Ukraine, Israel-Palestine and China-Taiwan — remain volatile. Unsurprisingly, insurance carriers are pulling coverage from and increasing deductibles for those traveling to these areas where violence is imminent or has already broken out.

Deglobalization trends, confrontation, sanctions and supply chain disruptions impact prices and stunt growth. This drives up insurance premiums while negatively affecting other insurance costs and valuations. The consequences of these issues are limiting opportunities for investment and exposing companies to risks abroad.

There is also concern over the worldwide insurance market with the new administration’s “America First” mindset. One expert argued that insurance as a global market works better when it allows carriers to distribute risk across the world and its different regions and industry characteristics and has expressed concern over the new administration’s emphasis on domestic production.

One InsurTech leader says the new administration’s promises for increased American protectionism, such as higher tariffs, should concern insurers. Additionally, the possibility of pulling out of the North Atlantic Treaty Organization (NATO), a longstanding political and military alliance of countries from Europe and North America, would cause further instability.

Health Insurance Changes

If the new administration is consistent with the actions of their first term, carriers and policyholders will feel the impact of loosened regulations and attempts to reduce federal health spending. This could make it easier for people to afford and access health coverage; however, these actions will likely include efforts to repeal and replace the Affordable Care Act (ACA), as they did in their first term.

Additionally, it’s worth keeping in mind that the new government might allow carriers to curate plans favoring healthier individuals while raising premiums on less healthy and older citizens. It also might impact the ACA’s protections for lower-income, high-risk patients, as they are a higher liability and cost for health benefit providers.

Medicare Opportunities for Individuals and Agents

An aging population, plus Medicare program changes from the Inflation Reduction Act of 2022, could result in lucrative opportunities for insurance agents. According to United States Census Bureau data, all baby boomers will be 65 or older by 2030 — making them eligible to enroll.

Medicare can be complex for elders to navigate, necessitating agent insight to ensure they have the correct coverage through diverse programs such as Medicare Advantage (Part C), Prescription Drug Coverage (Part D) and Medicare Supplements.

If selling Medicare, it is imperative to stay abreast of these crucial developments in its programs:

  • The annual Part D deductible will increase to $590 in 2025.
  • Part D’s annual out-of-pocket cost cap has been lowered to $2,000, which is $6,000 less than in 2024, which could save enrollees around $1,300.
  • Say goodbye to the coverage gap phase. Enrollees will now go straight from the initial coverage phase to the catastrophic coverage phase in 2025.
  • New Medicare Prescription Payment Plans allow enrollees to make capped monthly payments instead of paying the full costs upfront at their pharmacies.
  • The Centers for Medicare & Medicaid Services (CMS) predicts Medicare Advantage and Prescription Drug Programs will remain stable and possibly improve.
  • Broker commissions will increase again, but fixed administrative fees are excluded. However, several large carriers have announced that all new Part D business is no longer commissionable.

Learn more about opportunities in Medicare Sales and how to succeed in this new venture with industry insight from the National Association of Professional Agents (NAPA).

Technology and Artificial Intelligence (AI)

Insurers will need to keep up with the general business trend taking place across all industries: Engaging consumers with personalized experiences from data- and technology-driven insights. This includes leveraging technological innovations, such as artificial intelligence (AI).

We anticipate AI making moves in the insurance space in several ways, including:

Technology and AI advancements could mean greater opportunities for agents by revolutionizing insurance company operations. Learn more about some AI possibilities with additional insights from NAPA.

Data-Driven Marketing

Insurers are expected to leverage more customer-centric technology initiatives in 2025, and we’re anticipating that trend will carry over into their marketing efforts. Technology will open the door to opportunities to revitalize the customer experience and allow carriers to take advantage of greater efficiencies and opportunities.

Here are some of the ways we expect insurers to adjust their marketing efforts in 2025:

  • Creating hyper-targeted, personalized messages reflecting consumers’ needs, wants and pain points through data insights
  • Telling stories with micro-content on social media channels, emphasizing video deliverables
  • Using AI-driven and smart tools to simplify marketing and customer support by creating or identifying efficiencies in the sales funnel
  • Educating consumers interactively with webinars and digital tools in client portals, thus allowing insurers to leverage their industry insight to position themselves as thought leaders and experts in the space

Workplace Trends

While many of our expectations for 2025 result from external forces, such as geopolitical pressures or advances in AI, the following examples come from within. Unfortunately, they reflect employees’ struggles with understaffed workplaces and lack of employer transparency. The Insurance Journal compiled a list of insurance agency trends for 2025 and analyzed their potential impacts:

  • “Prepare the others” PTO – One of the many divides between employees and employers is paid time off (PTO) and understaffing. There is growing discontent among insurance professionals who are seeing their PTO denied, and they will continue to resign from their jobs if change does not come.
  • Quiet quitting and quiet firing – Quiet quitting is an employee trend in which one slows their effort in their current job while looking for a new one. Quiet firing is when a manager deliberately avoids mentoring an employee, pushing them to seek new employment. This is fairly common in the insurance industry.
  • Dry promotions – A dry promotion is when an employee is given a new title and more responsibility without a raise. Increased workloads without proper compensation lead to more resignations; this often happens unintentionally in insurance agencies, but something as simple as improved communication can solve the problem.

With all these changes on top of an evolving market, it can be all too easy to make a costly error that results in litigation. For instance, you could be held responsible if you misunderstand changes to the Medicare program and provide poor advice to a client, resulting in a coverage gap. Help get peace of mind for your career and finances by enrolling in AIP's Errors and Omissions (E&O) Insurance.

You can secure broad coverage at affordable rates to help protect your finances if a client alleges an error, omission or negligence in your duties. As claims of this kind can harm your professional reputation, your defense is paramount.

E&O insurance is essential for insurance agents of all levels — from those entering the field for the first time to experienced professionals. Be sure to learn more about AIP's E&O coverage and additional programs and benefits available to members.

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