Joel Rothman, CEO, New Ocean Solutions
AI will undoubtedly be the biggest driver of change in the South African insurance industry in 2025. From claims processing to fraud detection and policy personalisation, AI is poised to revolutionise operations in ways we’ve never seen before.
Since entering the mainstream public sphere in November 2022, AI has captured the world’s attention, sparking intense interest, debate and application across academic, commercial and government sectors. Its profound impact has drawn comparisons to some of the most transformative moments in human history:
- AI is like the invention of the printing press.
- AI is like the discovery of electricity.
- AI is like the advent of the internet.
- AI is like the invention of the mobile phone.
In short, AI is a game changer that is reshaping life as we know it.
Here are three themes that will define AI in 2025:
1. AI is everywhere!
AI is no longer a concept confined to tech hubs and research facilities. It is everywhere you turn! Large language models from providers like Amazon, Anthropic and OpenAI are already tackling complex tasks, while smaller, localised models are bringing conversational AI and decision-making capabilities to everyday devices.
The rapidly reducing cost of AI and the ability to run localised models will bring on-device AI to the average smartphone in the not too distant future. The impact on communities that are currently underserved will be immense as they will be able to have a conversation with the insurance provider’s AI interface in their own language and ask questions and receive answers about potential covers, policy wording or claims. Much of this would be possible even without continuous internet connectivity.
With AI’s ability to see, hear, speak and think, 2025 will be a catalyst year in which AI is integrated into almost every device imaginable from your home to the workplace and beyond. Picture smart security systems offering instant risk assessments for home insurance or vehicles able to remind their drivers of specific policy conditions if they start exceeding these or appliances notifying insurers of a malfunction and completing a claims form in the process.
New AI related risks will emerge alongside the widespread use of AI and astute insurers will be ready to offer appropriate insurance cover. In addition, the advent of humanoid robots – though still in its infancy – will also lead to new specialised insurance covers being developed for the risks in this regard.
Successful Partnerships
As the insurance landscape constantly changes, at Infiniti Insurance we remain committed to supporting you to adapt to the changes and meet the insurance needs of our mutual clients.
We are here to help you succeed.
Company registration number: 2005/029823/06
An Insurer licensed to conduct Non-life insurance
business and an Authorised Financial Services Provider
FSP Number 35914
2. AI agents
AI agents are another game changer. By combining large language models with access to tools like web browsing and APIs, agents can be formed that fulfil a role and perform tasks ranging from research to decision-making and execution.
For South African insurers, AI agents could streamline traditionally time-consuming processes. Imagine agents capable of analysing risk profiles, comparing policy options and even automating claims assessments. Whether it’s finding the most cost-effective reinsurer or preparing compliance reports, AI agents will deliver with precision and efficiency.
By late 2025, we can expect to see agentic AI services tailored specifically to the insurance sector handling everything from sales and underwriting to customer retention strategies – so don’t be surprised when you’re introduced to a new team member at work and it turns out to be an AI agent!
3. AI activism
With rapid AI adoption come valid concerns. In South Africa, where unemployment is a critical issue, fears of AI replacing jobs are set to drive activism. AI may begin as a co-pilot for underwriters or claims assessors, but the looming reality of full automation could spark widespread apprehension.
This raises an urgent need for insurers to prioritise reskilling initiatives, equipping employees with the tools to thrive in an AI-augmented environment. As job roles evolve, discussions around universal basic income could gain traction, particularly in the context of maintaining social stability.
The South African insurance industry has the opportunity to lead the way by leveraging AI responsibly. Transparent communication, equitable distribution of benefits and ethical guidelines will be critical as AI continues its rapid infiltration into all aspects of life and work.
The future has arrived
As William Gibson once said, “The future has arrived – it’s just not evenly distributed yet.”
In 2025, South Africa’s insurance sector stands at the forefront of this distribution challenge. AI will redefine how policies are created, claims are processed and risks are managed. But with these advancements comes responsibility – to ensure that AI benefits everyone, leaving no one behind.
The wild ride has begun. Buckle up and get ready for the next chapter of innovation in South African insurance!