To manage costs while adapting their operating models, insurers are accelerating digitalization, which requires investments in technological modernization, organizational flexibility and combining technology with human capital.
After years of stable markets and high premiums, many segments are entering a slowdown amid growing cost pressures. The non-life insurance segment, which reported 4% global premiums increase in 2024, is forecasted to reach only 2.3% growth in 2026. In the life insurance segment, premiums growth is expected to fall from 6.1% in 2024 to 2.4% in 2026 globally. In Europe, life premiums growth was 4.9% in 2024 and is forecasted to decrease to 1.7% in 2026.
After peaking in 2024, group insurance segment growth is expected to slow, but demand for products addressing new employee needs is growing, such as health insurance (including mental health) and pet insurance. As the workforce comprises five generations, insurers need to offer benefits and products better tailored to employees' professional and demographic profiles. Portfolios could include elder care, in-office daycare options, and support for adoptions.
Insurers' competitiveness will increasingly rely on agile capital models that ensure diversification of risks to manage volatility, such as retained risk combined with third-party reinsurance, and collaborative financing structures that enable them to transfer risk to capital markets, improving capital flexibility and strengthening resilience against large-scale losses. Insurers are intensifying their digitalization efforts, recognizing that competitive advantage depends on customer relationships, improved risk management and efficient internal processes. Cloud infrastructure, API connectivity, IoT devices, and AI are among the most frequent technology uses.
"Financial reporting is another area which could be optimized through digitalization. After the 2023 milestone, when insurers adopted international financial reporting standards IFRS 17, they now have the chance to leverage digital tools and data analytics to streamline reporting workflows," stated Claudiu Ghiurluc, Audit and Assurance Partner, Deloitte Romania. "Strategic partnerships and alliances can strengthen insurance providers' financial stability and provide revenue-generating opportunities through services complementary to traditional insurance products," stated Ana Șerban, Actuarial and Insurance Solutions Director, Deloitte Romania.
