SINGAPORE, 8 April 2025 – IDC predicts that, by 2027, insurers that integrate AI with FinOps will be able to consistently realize 45% more value from their IT investments, driven by informed automation at scale. This is just one of the predictions unveiled in the IDC FutureScape: Worldwide Insurance 2025 Predictions — Asia/Pacific (Excluding Japan) Implications report. The prediction reflects a growing shift toward AI-driven financial governance, where dynamic expense management, predictive analytics, and real-time insights empower insurers to optimize costs, improve operations, and gain a competitive edge.
Digital Infrastructure is a key foundational enabler to succeed in this age of “AI Everywhere”. IDC’s research shows that “Modernizing core IT infrastructure” is the #1 IT modernization initiative Asia/Pacific enterprises are planning to undertake in the next 18 months. The future enterprise digital infrastructure fabric will be decidedly hybrid, spanning public clouds, dedicated private cloud environments, private non-cloud IT and edge environments. With these environments expected to feature a cocktail of AI models and agents that will drive business value, enterprise decision-making relating to digital infra choices for AI will be the key to business outperformance and competitive differentiation in this exciting new world.
AI-driven FinOps is poised to transform financial strategy for insurers across Asia, enabling smarter IT spending, real-time insights, and scalable automation. As regulatory pressures and competition intensify, insurers are prioritizing AI-powered tools for cloud cost management, predictive expense control, and financial governance. This shift promises not only improved profitability and operational agility, but also opens the door to region-specific innovation. Embracing AI-enabled financial intelligence will be essential for insurers to remain competitive, resilient, and growth-focused in a rapidly evolving landscape.
“Global insurers must balance cost optimization with digital transformation. AI-driven FinOps offers a path to smarter IT spending, but success depends on seamless integration, risk mitigation, and maximizing ROI in an increasingly complex landscape,” says Surya Narayan Saha, research manager, Insurance Research, IDC Asia/Pacific.
IDC’s report presents the top 10 predictions for the ApeJ insurance industry through 2029. Each prediction is assessed based on its impact (a mix of cost and complexity to address) and time frame to the expected stated adoption level. This study also highlights IT impact and guidance for technology buyers for each prediction statement. The following predictions highlight key trends and provides decision-makers with deeper financial insights, improved risk management, and smarter technology investments to drive sustainable growth:
GenAI and AI Orchestrator: By 2026, 25% of insurers will achieve over 80% success rate on their GenAI initiatives by appointing an AI Orchestrator to break down internal silos.
Legacy Modernization Impact on ESG Agenda: By 2027, 45% of global insurers will adopt AI-driven legacy code modernization and green-certified cloud data centers, greatly enhancing energy efficiency and advancing sustainable IT practices.
AI Reskilling: By 2029, 65% of the insurance workforce will master human-machine collaboration, emphasizing personalized learning, critical thinking, and communication, boosting efficiency and customer satisfaction.
Each year, IDC releases its top technology predictions at worldwide, regional and country levels through its IDC FutureScape Reports and offers strategic and data-driven insights into what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. All the predictions stated here cover Asia/Pacific implications.
Catch an on-demand replay of IDC’s 2025 Predictions presentations on AI Everywhere Playbook, Building an AI-Fueled Business, Unblocking AI Everywhere Blockers, and Mapping Growth Opportunities in an AI Everywhere Era by registering here .
Asia/Pacific Excluding Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage IDC insights to better understand clients’ priorities and enhance your storytelling and go-to market plans, access the IDC FutureScape: Worldwide Insurance 2025 Predictions — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation here .
For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.
*Asia/Pacific excluding Japan
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About IDC FutureScape
IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC’s FutureScape reports are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world’s leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.