TOP INSURANCE CORE SOFTWARE TRENDS 2025

In 2025, the core software systems of the insurance industry will undergo significant advancements, leveraging emerging technologies such as Artificial Intelligence (AI), Machine Learning (ML), cloud computing, and data analytics. These innovations are redefining operational efficiency, customer experience, and risk assessment, ensuring that insurance companies remain competitive in a rapidly evolving market. This article by Viettel Software highlights key insurance core trends set to revolutionize the industry in 2025.

1. Artificial Intelligence (AI) and Machine Learning (ML):

• Automated Claims Processing: The application of AI in claims management shortens processing times and enhances accuracy. According to McKinsey & Company’s 2023 report, insurers using AI in claims processing reduced manual work by 70% and improved fraud detection by 30%.
  
  
• Enhanced Underwriting Processes: AI-powered underwriting platforms can analyze vast amounts of data, from medical history to real-time behavioral insights, enabling instant underwriting decisions. By 2025, it is expected that 60% of standard insurance products will be processed automatically, minimizing manual intervention.
  
  
• Personalized Insurance Products: AI enables the creation of tailored insurance policies based on individual lifestyles, supported by wearable technology and IoT devices. For example, auto insurers use telematics to adjust premiums based on driving behavior, incentivizing safe driving through lower insurance rates.

2. Cloud Computing:

• Cost Efficiency: Migrating core systems to the cloud eliminates on-premises infrastructure costs while offering flexible pricing models and scalable resources.
  
  
• Enhanced Collaboration: Cloud platforms allow stakeholders to access real-time data, improving transparency and reducing processing delays.
  
  
• Resilience and Business Continuity: Cloud-based systems offer superior disaster recovery capabilities, ensuring critical data remains protected and accessible even during unexpected disruptions.

3. Low-Code and No-Code Platforms:

• Faster Time-to-Market: These platforms enable non-technical employees to develop workflows and applications, allowing insurers to quickly launch new products or modify existing ones in response to market changes.
  
  
• Flexible Customization: Insurance companies can adjust core systems without complex coding, enabling faster responses to regulatory changes or customer demands.

4. Advanced Data Analytics:

• Predictive Analytics: Leveraging historical data and AI, insurers can forecast trends such as customer churn rates, risk probabilities, and claims likelihood.
  
  
• Real-Time Data Integration: By 2025, insurers will harness real-time data from IoT, social media, and other sources to refine risk models and offer dynamic pricing.

5. Blockchain Technology:

• Smart Contracts: Blockchain facilitates the automated execution of insurance contracts, such as instant payouts for flight delays without requiring manual claims.
  
  
• Fraud Prevention: Blockchain’s immutable ledger provides transparent and secure transaction records, making fraud detection and prevention easier.
  
  
• Enhanced Customer Trust: Blockchain ensures clear, tamper-proof records of policies and transactions, enabling customers to verify their coverage effortlessly.

6. Embedded Insurance:

• API-Driven Integration: Robust core insurance platforms with strong API capabilities enable seamless integration with third-party ecosystems, such as e-commerce sites and travel platforms.
  
  
• Scalability: Embedded insurance systems must handle high transaction volumes while maintaining a seamless customer experience.

7. Cybersecurity:

• AI-Powered Threat Detection: Core systems increasingly integrate AI to identify and mitigate cyber threats in real time, protecting sensitive customer data.
  
  
• Zero-Trust Architecture: By 2025, most core insurance systems will adopt a zero-trust security model, ensuring every access request is authenticated, whether from inside or outside the network.
  
  
• Regulatory Compliance: Evolving regulations require insurers to strengthen security measures. Core software must meet emerging cybersecurity standards.

Transforming the Insurance Industry with Technology

These technological trends are reshaping the insurance sector, making it more agile, customer-centric, and operationally optimized. To stay ahead, Viettel Software continuously researches and develops modern core insurance systems that meet the digital transformation needs of insurance businesses in Vietnam.​​​​​​​

Currently, Viettel Software is implementing a core insurance system for Agribank Insurance Joint Stock Corporation (ABIC), featuring advanced capabilities that support comprehensive insurance management, underwriting, finance, accounting, sales, claims processing, reinsurance, and customer service.

Key Features of Viettel Software’s Core Insurance System:

• Insurance Contract Management: Tracks the entire contract lifecycle, adjusts benefits, and ensures precise premium auditing.
• Underwriting & Claims Processing: Enables fast claim approvals and flexible adjustments.
• Finance & Accounting: Supports premium collection, payments, commissions, taxes, and financial reserves for enhanced transparency.
• Business Management: Oversees insurance product distribution, agency management, and commission tracking.
• Claims Management: Detects fraudulent activities, streamlines litigation processes, and improves recovery efficiency.
• Reinsurance: Facilitates seamless inward and outward reinsurance, optimizing risk management strategies.
• Customer Service: Centralized customer information management ensures quick and accurate support.
• Shared Functions: Includes catalog management, product configuration, and document handling for system customization and scalability.

Viettel Software’s core insurance system integrates cutting-edge technologies such as AI, OCR, remote digital signatures, Chatbot, and Big Data, enabling automation, enhanced security, and superior customer experience. These innovations reduce operational costs and help ABIC strengthen its competitive advantage, optimize insurance services, and quickly adapt to market demands.

With extensive technological expertise and experience in large-scale software solutions, Viettel Software is committed to delivering a modern, flexible core insurance system that supports successful digital transformation and sustainable growth for insurance enterprises.

Contact us for consultations and tailored solutions for your business!
Hotline: (+84) 988889446
Email: contact@viettelsoftware.com