INVESTING FOR TOMORROW

PRIORITIES FOR PROGRESS

Insurance: at the heart of a changing Europe

Since joining Insurance Europe late last year, I’ve been energised by the people I’ve met and the insight I’ve gained. Whether in Brussels or travelling across the continent, one thing is clear: this organisation is built on exceptional individuals, deep expertise, and a shared sense of purpose.

Connecting with members across Europe has been both inspiring and enriching. While each country brings its own perspective, behind the differences lie common challenges and a strong commitment to addressing them together.

Europe in a new geopolitical era

The world is undergoing profound transformation – and Europe stands at a critical crossroads. Internally and externally, the European Union is facing a convergence of powerful, disruptive forces that are reshaping our societies, economies, and global influence. The June 2024 European elections have redrawn the political map, marked by growing polarisation, the emergence of new political forces, and a rightward shift in the balance of power.

At the same time, long-term structural challenges are intensifying. By 2050, nearly 30% of the EU population will be over 65, placing unprecedented pressure on our pension systems, healthcare infrastructure, and labour markets. The accelerating impacts of climate change are no longer distant projections. 2024 was Europe’s warmest year on record, marked by devastating floods and growing exposure of cities to extreme weather events.

Disruptive technologies, particularly artificial intelligence, are transforming every sector – from healthcare to manufacturing – while exposing the urgency of closing Europe’s digitalisation gap.

Meanwhile, war on Europe’s doorstep has upended global value chains and exposed our energy vulnerabilities. Despite efforts to reduce dependencies, energy prices remain high, straining households and threatening the competitiveness of energy-intensive industries.

Tariff tensions and a rise in protectionist trade policies are adding further uncertainty, destabilising supply chains and impacting investment. The global economic order is shifting. Europe is being tested on multiple fronts – and must adapt.

More relevant than ever

In a world marked by uncertainty and disruption, insurance stands as a pillar of stability. As the protection gap widens, the urgency to act grows. We must ensure that insurance remains accessible, inclusive, and dependable – a trusted partner for people and businesses alike.

Insurance is not about policies and paperwork. It’s about keeping hospitals running when disaster strikes, homes protected against life’s uncertainties, cars safely back on the road after accidents, and businesses open and resilient in the face of disruption. It is a critical enabler of recovery and renewal – a safety net that empowers individuals, communities, and economies to rebuild, adapt, and move forward with confidence.

Now more than ever, our role is essential and our relevance undeniable.

“Insurance is a critical enabler of recovery and renewal – a safety net that empowers individuals, communities, and economies to rebuild, adapt, and move forward with confidence.”

Europe in a shifting paradigm

The Draghi report delivered a clear warning: without bold and sustained investment, Europe risks an “agonising decline”. That message, combined with a shifting geopolitical landscape, has served as a wake-up call. It has reignited political ambition and sharpened Europe’s focus on what truly matters as we enter a new political cycle.

In response, the European Union has redefined its priorities, placing strategic autonomy, European sovereignty, and competitiveness at the heart of its action. This marks a clear departure from business as usual.

The Commission’s agenda for the 2024-2029 mandate reflects this urgency. It prioritises:

• Driving economic growth by supporting competitive industries, creating quality jobs, accelerating investment, and leading in innovation and digital transformation.
• Strengthening defence and security, enhancing Europe’s capabilities, improving crisis response, and addressing both physical and cyber threats.
• Protecting the European way of life by reinforcing the social model, preparing for climate change, and ensuring the long-term sustainability of our natural resources.

These priorities are not isolated. They are deeply interconnected – and essential to securing Europe’s place in the world.

Seizing the momentum: a call for smarter regulation

Over the past decade, Europe’s regulatory landscape has expanded significantly. In 2012, our sector navigated around a dozen major regulations. Today, that number has grown to nearly 70 – many of them increasingly complex, overlapping, and burdensome. This regulatory expansion has real-world consequences, undermining our ability to deliver what matters most: stable, accessible, and inclusive protection for Europe’s people and businesses.

Regulation, while often well-intentioned, is not always designed with the realities of our industry in mind. Too often, policymakers overlook our sector. And when it does come to their attention, it is frequently viewed as a challenge to be addressed, rather than an essential solution. That perception must change.

Fortunately, the moment is ripe for change. This paradigm shift offers a genuine opportunity for progress. If we succeed in making our voice heard, in demonstrating the value we bring to consumers, to society, and to the broader economy, we can help shape a smarter, more enabling regulatory environment.

A strategic reset

To meet the collective need to boost Europe’s competitiveness, simplify regulation, and unlock long-term investment, we have undertaken a strategic reset. This reset aligns us more closely with the EU’s evolving priorities and strengthens our ability to develop robust, credible industry positions.

Together, we have defined four strategic priorities that reflect both the challenges and opportunities ahead:

1. The Savings and Investments Union – a cornerstone of the EU’s strategy to mobilise capital and drive sustainable growth.
2. Natural catastrophes and the protection gap – an urgent issue that insurers understand deeply and that must be addressed beyond short-term political cycles.
3. AI and data – technologies that are transforming our industry and must be harnessed responsibly and effectively.
4. The value proposition of insurance – because it is essential that our role in society is understood, recognised, and trusted.