2025 Best Practices for Commercial Insurance - Veridion
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Best Practices for Commercial Insurance in 2025

Navigating Trends, Challenges, and Data-Driven Solutions with Veridion

By subscribing, you will gain access to expert analyses and forward-thinking approaches designed to empower you to adapt and grow in the dynamically evolving landscape of commercial insurance.

We will deep dive into..

We will deep dive into..

the emerging challenges and opportunities presented by five transformative trends shaping commercial insurance in 2025, and how Veridion empowers insurance professionals and carriers to navigate and capitalize on them:

  1. Artificial Intelligence (AI) Becomes Integral to Insurance Operations

  2. Climate-Conscious Underwriting

  3. Shifting Towards Embedded Insurance Models

  4. The Growing Importance of Geopolitical Risk Management in Insurance

  5. The Rising need of AI Talent

One of the most significant trends in 2025 is the growing role of AI-driven underwriting.

More than 76% of insurers have implemented generative AI in at least one function, revolutionizing risk assessment, fraud detection, and pricing strategies. As AI integration matures, insurers must navigate challenges related to transparency, regulatory compliance, and data governance. proactively adapt to these changes to avoid disruptions and maintain compliance.

Climate risks and ESG factors are now central to underwriting models.

With insured losses surpassing $100 billion in 2024, the need for real-time ESG data has never been greater. Insurers must enhance their risk evaluation models to accommodate increasing environmental and regulatory pressures while developing innovative coverage solutions such as parametric insurance.

Embedded Insurance Model Challenges SMBs

The embedded insurance model is reshaping distribution strategies, especially for small and medium-sized businesses (SMBs). 30% of new embedded insurance partnerships in 2023 targeted SMBs, enabling seamless integration of coverage into operational workflows. However, challenges such as classification accuracy and data standardization remain key obstacles to scalability.

How can Veridion help

Veridion delivers decision-grade, real-time business data to support commercial insurance innovation. By combining comprehensive firmographics, ESG insights, and risk intelligence, Veridion empowers insurers to the streamline the core activities , such as underwriting and risk management, as well as enable product innovation and strenghten ESG compliance.

Let’s explore 4 use cases that highlight how Veridion’s real-time, decision-grade data supports insurers in navigating the key emerging trends:

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Redefining Underwriting with Accurate, Reliable, and Actionable Data

Veridion provides high-quality firmographic data on 123+ million companies and supplies real-time business descriptions that reveal hidden operational risks. This results in faster, more precise underwriting decisions, improving efficiency while maintaining transparency and regulatory compliance. Moreover, Veridion provides instant business classification across NAICS, SIC, ISIC, and industry-specific codes, ensuring precise risk profiling.

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Enhancing Climate-Conscious Underwriting with ESG Data

Veridion aggregates live ESG data from global sources, corporate reports, and sustainability initiatives, using proprietary AI models to classify risks into structured categories. This enables insurers to adjust pricing dynamically based on a company's environmental impact and improve climate risk modeling. By leveraging Veridion’s ESG insights, insurers can refine risk assessments, reduce exposure to unsustainable firms, and align with regulatory frameworks like CSRD and SEC climate disclosure rules.

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Fraud Prevention & Claims Optimization

Veridion identifies high-risk businesses by scanning operational changes, financial distress signals, and hidden affiliations. It verifies business legitimacy through online presence analysis, location accuracy, and regulatory filings while enhancing fraud models with behavioral insights to flag suspicious claims patterns. This enables insurers to reduce fraudulent claims, lower loss ratios, and streamline claims processing, improving overall portfolio profitability and efficiency.

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Geopolitical Risk Exposure Analysis

Veridion provides business location mapping to identify firms in politically unstable regions and contested trade routes, tracks supply chain dependencies, and offers technographic insights to detect cyber vulnerabilities. By leveraging this intelligence, insurers can refine underwriting strategies, proactively adjust coverage, and price policies accurately for businesses exposed to geopolitical risks, ensuring better risk management and reduced claims volatility.

Veridion’s solutions at a glance

Enriched Business Profiles – Gain Better Understanding of the Business

Veridion’s Normalization & Enrichment Service ensures high-quality data by cleansing, standardizing, de-duplicating, and enriching business records. This ensures insurers have access to accurate, verified, and comprehensive profiles, significantly improving workflow efficiency. With this service, underwriters can save an average of 20 minutes per case, reduce manual data validation efforts, and ensure no critical claims risks are overlooked due to incomplete or inaccurate policyholder data.

Enhanced Risk Assessment – Identify Hidden Risks

Veridion’s Search Service scans companies’ online presence to identify changes in business risk exposures, such as involvement with hazardous materials or high-risk activities. Our robust search functionality uncovers hidden risks by analyzing locations, products, services, and operational models, enabling underwriters to conduct thorough risk assessments and tailor coverage more precisely. This proactive approach leads to accurate premium calculations and better customer outcomes, ultimately enhancing satisfaction.

If you want to:

Stay ahead of industry shifts shaping commercial insurance in 2025

Understand how AI, climate risks, and embedded insurance models impact underwriting

Leverage real-time data solutions to optimize risk assessment and decision-making

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Navigating the Future of Commercial Insurance: Trends, Challenges and Data-Driven Solutions with Veridion.

With this report, you'll unlock answers to key questions, such as:

Is your underwriting strategy powered by AI-powered data or held back by outdated data?

AI is transforming underwriting, claims processing, and fraud detection, but without accurate, real-time data, even the best models fall short. Discover how AI-powered high-quality business descriptions, industry classifications and dynamic risk insights can give you a better understanding of the business and identify hidden risks. 

Are you including ESG risks into your underwriting - or missing a critical layer of exposure?

ESG factors are reshaping risk assessment, yet many insurers struggle to integrate them effectively. Find out how Veridion’s real-time ESG data can enhance climate-conscious underwriting and portfolio resilience.

 

How do you assess risk when global instability keeps rewriting the rules?

Geopolitical shifts, trade disruptions, and cyber threats make risk assessment more complex than ever. See how Veridion’s real-time location intelligence, firmographics, and technographics can give insurers the clarity they need.

Is commercial insurance too complex for embedded models, or are insurers missing a game-changing opportunity?

For years, commercial insurance was considered too intricate for embedded models—but that’s no longer the case. See how Veridion can solve the classification challenges, data gaps, and scalability issues.

Embark on this transformative journey with us, and equip yourself with the knowledge and tools necessary for success in the commercial insurance digital age.

Download the full report now to get started.

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