Despite a recent period of disruption, the European insurance industry has remained stable. Insurers recovered quickly from the short-term profitability hit caused by COVID-19, and the outlook is positive: we project about 3 percent annual premium growth and 8 percent growth in profits by 2025.
This relative economic steadiness is an asset. But when it comes to digital transformation, is the insurance industry resilient in the face of change, or is it resistant to it? The past decade has seen multifaceted technology trends emerge in the industry. Some shifts, such as the adoption of digital channels for claims notifications, have accelerated because of the pandemic. Others have remained stagnant for years: for example, adoption of direct and digital distribution has hovered at 18 percent in the European property and casualty (P&C) market. (For information on the research presented in this article, see sidebar, “About the research.”)
