In 2025, life, annuity, and benefits insurers are increasing IT spending to 4.5% of premiums, driven by cloud costs and emerging tech adoption. Internal workflow optimization now rivals distributor support as a top priority, signaling a shift toward operational efficiency. AI investment is expanding beyond traditional machine learning into areas like large language models, voice recognition, and unstructured text analysis, with about 2% of IT budgets allocated to AI. However, project execution and staffing remain key challenges. Outsourcing is on the rise, with external full-time IT staff growing from 24% to 44% year over year.

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