Accelerating insurance transformation

Navigating unprecedented disruption in the insurance sector

The European insurance industry has historically served as a cornerstone of financial stability, built on centuries of meticulous risk management and gradual progress. It offers essential protection for individuals, businesses, and the economy, helping them navigate uncertainty. However, the industry now confronts two significant challenges:

1. Unprecedented disruption: Once characterized by stability, the sector is now facing an extraordinary wave of change. Modern challenges driven by technological advancements, shifting customer expectations, workforce transformation, and rapid market consolidation are reshaping the insurance landscape. Growing coverage gaps have raised consumer concerns, and substantial investments in the insurance intermediary market are demanding quick financial returns, putting unprecedented pressure on the industry to adapt.
2. Lack of financial value creation: Between 2015 and 2024, the industry has not generated financial value, reporting an average annual negative economic spread of approximately ~2%.

These disruptions require urgent and radical changes. However, the industry faces significant barriers, including outdated IT systems, cultural inertia, financial constraints, and increasingly complex regulatory requirements. As always, any transformative innovation must be balanced with the operational stability that defines the insurance sector.

To better understand how leading firms are preparing for these transformations, we conducted a market-backed survey among leading insurers and brokers working with the board members in charge of transformation across the EMEA region. We engaged with the top three players in the major insurance sectors, including primary insurers, reinsurers, and brokers, as well as local and regional leaders. Our findings reveal a stark reality: very few companies are genuinely prepared for the transformation ahead.

Register here to download the study