The Pulse Check report is based on insights from our industry research and advisory practice, augmented with the results of our October 2023 survey of more than 250 executives from insurance companies and technology ecosystem partners across Europe.
General uncertainty across markets, driven by factors such as inflation, fear of recession, geopolitical tensions and climate change, continues to impact the insurance market.
In 2024-2026, insurers will focus on increasing their top-line performance by attracting new customers, improving customer retention and adapting to the digital age. Operational resilience and organizational agility are also top priorities to enable insurers to be flexible and responsive to market fluctuations.
Although most European reinsurers and insurers have weathered increased inflation and interest rates relatively well, the imperative is to prepare for economic slowdown and protect capital that has become expensive by tightly controlling discretionary spending and focusing on projects that add immediate value to the core business.
Key insights from the EMEA Insurance Market:
- Resilience Remains a Top Priority: As anticipated in the previous year, resilience continues to be the foremost concern for insurers. In response to heightened market volatility, our clients consistently review, monitor, and adjust their strategies. Recognizing it as a crucial aspect, insurers aim to leverage challenges and opportunities, fulfilling obligations to policyholders, and positioning themselves as preferred partners for insurance solutions.
- Financial Stability Guides Investment Plans: Observations reveal a strategic shift in the investment plans of insurance clients, prioritizing financial stability. Opting for a prudent approach, insurers are reducing exposure to higher-risk investments and discretionary spending. There is a noticeable trend of delaying investment decisions until market conditions exhibit stability and clear directions.
- Focus on New Business Creation and Enhanced Customer Experience Persists: Despite challenges posed by a stagnant economy, insurers maintain their commitment to developing new business and enhancing customer experiences. This is facilitated through strategic partnerships with sectors like healthcare, automotive, or technology. Collaborations aim to create bundled, personalized offerings and capitalize on cross-selling opportunities.