We are pleased to present the fourth edition of the annual ISG "Pulse Check - State of the European Insurance Industry" report, analyzing the current state and future outlook of the European insurance market.
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.
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.
About the authors
Anna Medkouri
Anna Medkouri is Lead Partner for the ISG Insurance Industry business in Europe, the Middle East and Africa. She specializes in CIO advisory, business and IT alignment and sourcing. In addition to the many years Anna has spent in advisory and management consulting, she has more than a decade of experience working for enterprise clients.
Her clients appreciate that she understands their challenges and helps them to drive digital transformation, avoid mistakes and apply best practices. With energy, perseverance and prudence, she reliably guides her clients every step of the way to ensure that every project is a success.
Amit Dengle
As the director and research advisory lead for ISG in EMEA, Amit leads the design and implementation of business growth strategies for C-suite clients with managed services providers. Amit is a trusted strategy design partner and financial services industry expert who publishes thought leadership content, delivers keynote addresses and designs go-to-market strategies.
Ashish Jhajharia
Ashish Jhajharia is an analyst and the lead author for ISG Provider Lens™ Insurance Services and Platforms reports. He supports insurance core system selection, outsourcing advisory engagements, go-to-market studies and points of view for insurance clients across North America, the UK, EMEA and Asia Pacific.
Thorsten Stuewe
Thorsten Stuewe is a director in the ISG EMEA Insurance practice. He is a seasoned expert with more than 20 years of extensive experience in financial services for the insurance and banking industries, gained from both internal positions at insurance companies and through consulting.
He combines in-depth knowledge and market expertise of the insurance industry to provide a holistic advisory approach to clients. Thorsten advises on IT strategy, cost optimization, regulatory, IT sourcing and digitalization projects and the implementation of target operating models. He is committed to strengthening clients' capabilities, future resilience and market competitiveness.
He combines in-depth knowledge and market expertise of the insurance industry to provide a holistic advisory approach to clients. Thorsten advises on IT strategy, cost optimization, regulatory, IT sourcing and digitalization projects and the implementation of target operating models. He is committed to strengthening clients' capabilities, future resilience and market competitiveness.
Neslihan Koese
Neslihan Koese is an analyst with ISG, helping clients transform and optimize their business processes by using data and analytics to drive IT strategies and business process transformation. Neslihan served as project manager for the 2024 ISG "Pulse Check - State of European Insurance Industry" report.
