Cynozure, a data, analytics, and AI consulting firm, in collaboration with The Insurance Network (TIN), has released its latest report, “What Matters Most for Insurers Now: Cynozure’s 2025 report on data and AI in insurance.” The report, based on a survey of 35 senior leaders across the UK and global insurance markets, indicates that while insurers recognize data and AI as crucial for growth, they face challenges in aligning their ambitions with execution.
The report identifies that 66% of insurers aim to cultivate a data-driven culture, and 46% seek real-time decision-making. However, fewer are prioritizing the necessary initiatives to achieve these goals. Only 11% are investing in data literacy, and just 29% are enabling self-service analytics. This gap suggests a potential misalignment between strategic outcomes and the capabilities and investments mobilized to support them, which may also reflect internal readiness rather than a lack of strategic ambition.
Key findings from the report include that 69% of insurers consider realizing business value from data and analytics a top priority for the next 12–18 months. Despite this, only 11% prioritize data literacy and 29% enable data-driven decision-making, both identified as essential for transforming data into action.
Budget or resource constraints are cited as a top blocker by 49% of respondents, with the nature of these barriers varying by firm size. Smaller firms typically encounter resourcing gaps, while larger firms grapple with legacy systems and issues related to data quality and governance. Furthermore, ownership of AI strategy appears unclear or fragmented; only 31% report it is led by a Chief Data Officer (CDO) or equivalent, and 25% state there is no clear owner or that ownership is distributed across teams.
The report also notes that 54% of insurers view data and AI as central to future growth, with nearly 75% reporting board- or executive-level sponsorship. Two-thirds of insurers are actively exploring or deploying AI agents, indicating a move beyond initial experimentation within the sector. The report suggests that the success of these initiatives will depend on strong leadership, governance, and culture.
Jason Foster, Founder & CEO at Cynozure, commented, “The direction of travel is clear: insurers want faster, smarter, more data-guided operations. But delivering on that ambition is proving difficult. Progress is being held back by unclear or fragmented data & AI ownership, legacy technology, data quality and governance issues, and underinvestment in the capabilities that drive real impact.”
Jeremy Burgess, CEO at The Insurance Network, added, “This report spotlights the real execution challenges facing insurance leaders today. It’s a must-read for anyone shaping data and AI strategy in a regulated, complex environment.”
Cynozure is a data, analytics, and AI consulting firm that provides services in data and AI strategy, data management, data architecture and engineering, AI and analytics, data culture and literacy, and data leadership. The company has been recognized in The Sunday Times’ fastest-growing private companies list in 2022 and 2023, and as the Best Place to Work in Data by DataIQ in 2023 and 2024. The Insurance Network specializes in connecting insurance leaders.
