Europe leads global insurance sector

Europe is a major player in the global insurance industry, with eight of the twenty largest global insurers based on the continent. This position highlights the region's significant influence in shaping insurance practices and policies worldwide.

AI is reshaping insurance operations

The arrival of artificial intelligence is rapidly reshaping the insurance sector, affecting dimensions such as the automation of processes, data exploitation, risk selection, and customer interaction. These changes are driven by the growing role of technology in managing insurance services and improving efficiency.

Technology's role in insurance is expanding

Technology's role in the insurance value chain has grown significantly, with the percentage of insurance premiums allocated to technology increasing from about 2.5% ten years ago to nearly 4% today and continuing to rise. This shift is blurring the boundary between insurance and technology, making the ability to design and deploy AI-driven portfolios a strategic competence.

European insurers rely on non-European tech

The European insurance sector faces a challenge in maintaining control over the technological core of the industry, as a growing portion of strategic functions now relies on non-European actors. For example, Macif completed a five-year program costing 470 million euros in early 2026 to restructure its core information system with the American company Guidewire.

Loss of control and skills in Europe

This infrastructure, which organizes essential operations and data, creates long-term dependency for the insurer. Similarly, the main suppliers of business platforms and portfolio management tools are predominantly American or Chinese, leading to a loss of operational control and skills within Europe.

European insurers struggle with internal tech capabilities

European insurers are attempting to preserve technological mastery through internal teams, but many lack the resources to maintain such capabilities, and even the largest may struggle to compete with better-funded specialists. AI's integration into insurance processes will require access to the right data and deep integration into business processes, giving control over this infrastructure a decisive influence on the future of insurance.

Europe needs local tech support for transformation

To retain this mastery, Europe needs technological actors capable of supporting the sector's transformation. The "make and buy" model, which involves keeping critical functions in-house while relying on specialized actors for agility, is seen as a viable approach.

European startups face funding challenges

However, the current balance of power is unbalanced, with young European startups struggling to secure funding compared to their non-European counterparts. For instance, American company Socotra raised 96 million dollars, while British Instanda raised more than 84 million dollars, and Singapore-based Peak3 raised 35 million dollars.

Market fragmentation hinders European growth

Additionally, the fragmentation of the European market complicates expansion, making it as challenging for a French company to operate in Spain or Italy as it is to enter the United States. This fragmentation limits the ability of European firms to scale and compete globally.

Risk of strategic desertification

The danger for Europe is strategic desertification, where the technologies, financing, and skills necessary for future insurance development emerge elsewhere, leaving European insurers dependent on infrastructure they no longer control. The challenge for the coming years is to retain control over the technology that will shape insurance for the next decades.