Leadership Trending 2025

The most effective leaders will adapt to coming challenges by embracing strategies that foster greater innovation, employee well-being and agility. Here is why and how - 

1. Leveraging Artificial Intelligence and Technological Integration
The integration of AI and other cutting-edge technologies into the workplace is no longer optional for leaders—it’s an imperative. In the coming year, leaders must go beyond just understanding these technologies; they need to actively leverage them to enhance decision-making, streamline processes and gain a competitive edge.

No matter the industry, the best leaders can use AI-powered tools to analyze large datasets quickly, providing them with actionable insights for strategic planning. AI can transform their operations, not with the goal to reduce personnel but to move human talent to more high-value, customer-focused and creative roles. Leaders who embrace this trend will need to foster a culture of technological curiosity within their teams, ensuring employees are equipped and empowered to use these tools effectively and to push the bounds of the status quo. Balancing human ingenuity with AI capabilities will be a defining factor of successful leadership in 2025.

2. Prioritizing Employee Well-being and Mental Health
Over the past few years, factors from the Covid pandemic and increased social isolation and the increasingly divisive nature of society have underscored the importance of mental health and well-being in the workplace. Leaders in 2025 need to place greater emphasis on creating supportive environments where employees feel valued, safe and able to perform their best—no matter what is happening in the world around them.

This trend involves implementing wellness programs, support networks, flexible work and fostering a culture that prioritizes real work-life balance. The best leaders are recognizing that employee well-being is directly linked to the best work outcomes. Organizations that proactively address mental health challenges and model self-care practices will create places to work that can thrive emotionally and operationally.

3. Embracing Agile Leadership
Agility is becoming a cornerstone of effective leadership like never before. In every organization I visit, change has become a constant. Agile leadership during times of transformation involves the ability to adapt quickly, make decisions with limited information, and empower team members to respond to changing circumstances with confidence.

Leaders in agile cultures focus on fostering a steady stream of open communication. They also encourage collaboration among teams and maintain an approach to problem-solving that keeps customers’ needs at center of innovation. In addition, they encourage their people to experiment and even fail in responding to evolving challenges. This agile approach not only enhances organizational resilience but ensures that leaders have the support and ideas of their team members in navigating the complexities of shifting consumer behaviors and technological disruptions.

The Leadership Imperative
The most effective leaders of 2025 will be defined by their ability to integrate technology seamlessly, prioritize the well-being of their people, and lead with agility. These trends reflect a shift toward more human-centric and adaptable approaches to leadership, emphasizing the need to balance innovation with empathy. Leaders who cultivate these traits will be better positioned to thrive in an increasingly complex and competitive environment.

As the year unfolds, the question isn’t whether these trends will shape leadership but how effectively leaders will rise to meet these challenges.

Indonesian Prefer Endowment Policy

The life insurance sector in Indonesia is on a trajectory to achieve a valuation of $12 billion in gross written premiums (GWP) by the year 2028. This growth is forecasted at a compound annual growth rate (CAGR) of 3.8% from the year 2024, escalating from IDR161.3 trillion (US$10.5 billion) to IDR187.2 trillion (US$12.1 billion) within a four-year span.

This optimistic outlook emerges despite a preceding phase of slowed growth, highlighted by a downturn in the sales of endowment insurance policies, expected to dominate life insurance premiums by nearly 70% in 2024.

Indonesian life insurance market forecasts - a looming 2.0% shrinkage in the industry in 2024, following a 5.4% reduction in 2023. Factors contributing to this trend include a downturn in investment-linked insurance product sales amid global financial uncertainties and a shift in consumer preference, impacting new premium acquisitions.

Nonetheless, a resurgence is anticipated in 2025, fuelled by a rising demand for traditional life insurance offerings and evolving demographic dynamics in Indonesia.

Indonesian endowment insurance market forecasts - Endowment insurance, claiming a substantial 69.3% of the GWP in 2024, is foreseen to witness a 7.0% decrease in the same year, subsequent to a 10.9% fall in 2023.

These contractions are largely attributed to enduring market volatilities, deterring long-term returns and swaying consumer interest towards more traditional insurance plans focused on long-term security and protection.

In a bid to counteract these trends, regulatory enhancements initiated by the Financial Services Authority of Indonesia (OJK) in January, aimed at reinforcing investment-linked insurance product marketing, are expected to cultivate consumer trust and favorably impact endowment insurance growth, with a projected CAGR of 1% through 2024 to 2028.

Indonesian PA&H insurance market forecasts - Additionally, the personal accident and health (PA&H) insurance category, positioned as the industry's second-largest segment and representing 13.8% of the GWP in 2024, is poised for a 13.1% expansion in the same year.

The segment's growth is bolstered by an uptick in health awareness, escalating medical expenses, and demographic shifts, including an aging population and extended life expectancy projections. The PA&H insurance segment is projected to exhibit a CAGR of 10.8% between 2024 and 2028.

Indonesian term life insurance market forecasts - Term life insurance, accounting for an estimated 12.9% share of Indonesia's life insurance GWP in 2024, is slated for a 9.8% growth due to demographic changes and an increase in consumer disposable income.

Innovations by insurers, including the introduction of cost-effective term insurance plans, are anticipated to further stimulate term life insurance growth, with an expected CAGR of 7.9% from 2024 to 2028.

Fraud At Taiping Insurance

Xiao Xing, former deputy general manager of State-owned China Taiping Insurance Holdings Co Ltd, Xiao Xing, former deputy general manager of State-owned China Taiping Insurance Holdings Co Ltd, was sentenced to life imprisonment for bribery on Monday, according to a court in Central China. A court in Xinxiang, Henan province, ruled on Monday that all of Xiao's personal assets would be confiscated.

Previously, Xiao held several other management positions, including general manager of China Life Insurance's Shanghai branch and general manager of Taiping Asset Management Co Ltd.

The court found that from 1998 to 2023, Xiao took advantage of his positions to assist relevant units and individuals with financing loans, business cooperation, job placements and other matters through the actions of other state employees.

He illegally accepted property worth more than 81.5 million yuan ($11.2 million) directly or through other means, according to the court. Xiao was granted a lenient sentence, given certain facts, including his willingness to cooperate with investigators and return illegal gains, the court said.

Los Angeles Wildfires & Impact on Insurance

Wildfires that have ravaged swaths of Los Angeles could result in losses of as much as US$30 billion (RM135 billion) for the insurance industry as the blazes rage on almost a week after they ignited.

US$20 Billion Estimated Damaged - The new estimates from analysts prediction significantly exceed last week’s highest prediction that the fires stood to cost insurers roughly US$20 billion.

Home insurance providers will bear the brunt of the cost. Allstate Corp, Chubb Ltd, American International Group and Travelers Cos are the most exposed among the firms covered by Wells Fargo analysts, according to a note the bank sent to clients on Jan 12.

The most exposed insurers not covered by the bank include Mercury General Corp. and Cincinnati Financial Corp, according to the analysts.

Global Impact - Global property and casualty insurers are also beginning to acknowledge the disaster’s impact. 

Japan’s Tokio Marine Holdings Inc is “making group-wide efforts to pay insurance claims to those affected as quickly as possible. Tokio Marine, along with Japan’s MS&AD Insurance Group Holdings Inc and Sompo Holdings Inc, are collectively exposed to about 3% of insured damage from the California fires. 

Los Angeles is grappling with a second week of wind gusts exacerbating wildfires and hindering firefighters’ efforts to contain them. At least 24 people have died and more than 12,000 buildings across over 40,000 acres in the Pacific Palisades and Altadena neighbourhoods burned to the ground.

Industry analysts estimated insured losses between US$10 billion and US$30 billion, likely rising to around US$40 billion when taking into account uninsured losses, according to a note dated Jan. 13. The fires are expected to have a drag on US nonfarm payrolls growth of 15,000 to 25,000 in January.

Leadership Mistakes

Five mistakes leaders must absolutely avoid to become more effective. These “mistakes” have been captured in several surveys, personal interviews with hundreds of employees and leaders, and the literature.

Not Recognizing People's Strength - Not recognizing people’s unique talents beyond a job description and how that translates to high performance is undoubtedly an engagement killer. Truth is, people love and want to use their strengths. The best leaders will leverage close relationships with employees by discovering their strengths and bringing out the best in their employees.

Not Spending Personal Coaching - To avoid your schedule becoming a reflection of your selfish priorities in the eyes of employees, create margin and build in time for one on ones. There is a simple way to do it in fifteen minutes or less. Here are the steps for crafting one-on-one meetings that get results.

Poor Transparency - Here is why people holding power hoard and withhold information: It’s about control. And control is one of the most effective ways to kill trust. A leader hoards information to control his environment, and the people in it cannot be trusted. The reverse of this is a leader who acts responsibly by sharing information and being transparent about decisions, direction, and emotions with their team.

Micromanaging - While we need to recognize that micromanagers are human, like the rest of us, and generally have good intentions, they often lack the day-to-day awareness of what it takes to inspire people intrinsically to excel. They tend to operate from a different paradigm altogether.

My Way Or Highway - A manager who always has to be right and needs to have the final say on everything shows a lack of emotional intelligence. When they don’t ask for input from others—especially during tough times, which can be really stressful—trust starts to fade, and team morale takes a hit.

If a manager doesn’t share a clear vision and listen to what the team has to say about it, team members are likely to feel unappreciated, disrespected, or overlooked. As a result, they might become passive and go along with things out of frustration rather than genuine engagement.

Shaking Agent Stereotype

Consumers have almost viewed the insurance industry as purely transactional. Consumers trust financial services companies, including insurers, considerably less than those in other industries. 38% of consumers perceive insurance agents solely as sellers, saying they lack proactive support in post-deal closures, especially during pivotal moments such as claims assistance. Combined with a lack of access to financial services in some communities and limited financial education, these perceptions have made customers less likely to buy insurance.

For the industry to reverse these trends, agents need to shake off the “seller” stereotype. Here are four insurance agent tips to help dismantle this perception and better serve customers.

1. Focus On Financial Education
A lack of financial literacy can lead to individuals getting policies that don’t align with their needs. This is largely because consumers don’t fully understand insurance contracts. Limited cost transparency also makes it harder for consumers to choose the right insurance coverage.

Agents can eliminate the seller stereotype by focusing on financial education in every client interaction. After asking a few questions about a customer’s needs, they can succinctly explain different types of insurance that may be suitable, focusing on benefits, the specific risks each policy covers, monthly or annual premium costs, and potential riders or endorsements an individual can add to further customize their coverage. These efforts can complement an insurer’s formal financial education program and may include educational materials and on-demand webinars that guide consumers through the insurance selection process.

Clients who feel more informed about their choices are more likely to trust an insurance agent’s guidance, so this is one way agents can position themselves as a valuable resource.

2. Communicate Proactively
Consumers often view insurance agents as sellers because they get limited support once they sign up for a policy. This suggests agents are really attentive when they are trying to win a consumer’s business, but less attentive afterward, which is counterintuitive since customers may need even more help when they have a policy question or need to file a claim.

Customers usually interact with their insurance agent only once or twice a year. This is a big difference compared to other financial service industries, such as banking, where interactions occur 10 to 20 times more frequently, noted the source. It’s hard to shake a stereotype if you are limited in the interactions you have with a policyholder — not to mention when those interactions are predominantly sales focused or claims submissions.

Proactive communication can address this issue. Agents should reach out to policyholders to review their coverage on a semi-annual or annual basis, inform them of new products, and offer tips that focus on the post-purchase experience, such as a step-by-step guide for filing a claim or advice for minimizing their insurance risks. Creating opportunities for regular touchpoints with consumers can help agents foster an ongoing relationship that increases insurance customer satisfaction.

3. Lead With Empathy
Despite the higher cost associated with serving through agents, they only marginally outperform online and mobile applications in customer satisfaction: 39% of insurance consumers express dissatisfaction when interacting with insurance agents, which is slightly less than the 40% who report dissatisfaction with online and mobile applications. Customers may not be satisfied because agents aren’t offering them personalized solutions — 34% doubt agents and brokers offer the most competitive options and believe agents are biased toward carriers with the best commission rates or the least burdensome submission and quote producer portals.

Agents can overcome these beliefs by demonstrating empathy for clients and actively listening to a customer’s concerns. They can showcase this in their email follow-ups with supportive words, acknowledgment of their unique challenges, and tailored guidance.

4. Leverage Technology For Better Service
Insurers can use technology to enhance the customer experience, making it easier for agents to deliver better service. Cloud-based contact centers give agents secure access to customer profiles from anywhere and allow them to see the most up-to-date information about a customer’s previous interactions. This way, they can have a more informed conversation with customers and avoid repeating the same details. Interactive solutions like live chat, policy comparison, and virtual consultation tools, as well as questionnaires that identify coverage gaps, can help agents deliver more useful information to customers in real time.

When using online and offline tools, it’s important to provide a seamless omni-channel customer experience to ensure high-quality engagement every time. Approximately 1 in 6 customers reported receiving no follow-up from insurers after an initial financial advice discussion. Among those who did receive follow-up, 40% interacted with two or more people, which can result in a fragmented experience. Insurers need to do what they can to address these gaps and ensure that customer interactions transition smoothly between all channels.
Moving from seller to trusted advisor

Finding the right insurance shouldn’t be a complex process, but it often is. Perceptions that insurance agents are more focused on commissions rather than a consumer’s best interests only add to this complexity and create a significant trust gap. Agents can defy the “seller” stereotype with solid financial education and proactive communication by demonstrating empathy and leaning on technology to enable their work. This will show consumers they are with them at every stage in their insurance journey.

Agent Sue Prudential - Singapore

A veteran insurance agent who was an agency leader within his company’s network of agents is suing his former employer, Prudential Assurance Co Singapore, for wrongful termination. 

Unfair Agency Agreement - See Jen Sen worked for Prudential for 19 years before his agency agreement was terminated in March 2022. Mr See alleges that the termination came about because he blew the whistle on Prudential’s alleged malpractice in its business to the Monetary Authority of Singapore (MAS).

Mr See is suing Prudential for wrongful termination, unjust enrichment and a claim under the Unfair Contract Terms Act. Prudential applied to strike out Mr See’s claims entirely and succeeded partially – an assistant registrar on the case struck out two of the claims, leaving the wrongful termination claim.

Mr See then appealed against the striking out and succeeded in a judgment made available on Thursday (Mar 21). This means he will be allowed to pursue all three claims against Prudential at trial.

Whistle Blower Inquiry - According to the judgment, Mr See was the subject of an inquiry by a compliance committee set up by Prudential before his termination. He was suspected of sending complaints under various pen names to MAS and the chief executive officer of Prudential, accusing Prudential of malpractice.

This refers particularly to the launching of allegedly misleading advertisements of insurance products that contravened MAS guidelines. Mr See did not deny that he was responsible for these complaints, but his counsel referred to them as the whistleblowing acts.

Mr See alleged that there was a breach of contract when his agency agreement was wrongfully terminated. The termination was in fact grounded in his whistleblowing acts, which is not a legitimate reason to terminate his contract, Mr See alleged.

He also alleged that Prudential had been “unjustly enriched” by the financial benefits it retained from terminating his agreement. This refers to bonus payments Mr See was entitled to under an incentive scheme called the “Agency Leader Long-Term Incentive Scheme” and bonus commissions under the “Sell-Out scheme”.

The conditions for receiving these bonus payments and commissions are set out in documents circulated to the agents, and form the basis of Mr See’s third claim – that some conditions breach the Unfair Contract Terms Act.

Prudential’s lawyers, on the other hand, say that the termination was lawfully made and that Mr See was given notice of his termination.

Justice Choo Han Teck explained in his judgment that it is best “not to fetter” the hands of the trial judge, who will have to hear the claim for wrongful termination “in any event”. “In order to do justice in full, he must be allowed to decide what reliefs or remedies a claimant seeks,” said Justice Choo, adding that the issues ought to be ventilated as part of the full narrative at trial.