The European insurance sector is a significant contributor to Europe’s economic growth, and it also plays a crucial role in protecting people and businesses and their assets. Despite the series of crises the world has faced over the past years, the European insurance sector has remained robust, demonstrating its ability to protect consumers and to maintain a global leadership position. European insurers employ more than 920 000 people , manage €9.5 trillion in assets, of which around 70% is invested in the European Union . In 2023, the European insurance sector paid out over €1 000 billion in claims, equivalent to €2.8 billion a day .
The insurance industry stands ready to constructively share knowledge and expertise with the European institutions and the civil society to contribute to the European objectives. We believe that the insurance industry could be and should be part of the solution to the challenges Europe is facing.
Therefore, the insurance industry has set five priorities for the coming years.
Firstly, the installation of the new European Commission under the leadership of Ursula von der Leyen started with an ambitious roadmap to restore the European competitiveness. This roadmap includes a simplification plan, which is a crucial part of the solution. We believe that the objectives of the EU Competitiveness Compass, when translated into concrete action, will have a meaningful impact on the European economy.
Secondly, the Savings and Investments Union is a key area of focus. Today, the insurance sector acknowledges a significant lack of long-term investments in Europe to meet the continent’s needs for financing climate and digital transitions, as well as safeguarding its social model that protects the ageing society and support the younger generation. While savings are abundant, insurers truly encourage a Savings and Investment Union supported by the development of initiatives that will reduce capital market fragmentation. Several opportunities remain to be explored in this area, such as the development of collective pension plans with automatic enrolment and attractive individual retirement savings plans based on national situations. A holistic approach would not only strengthen individual retirement outcomes, but also unlock crucial investments in Europe’s economy including the green and digital transitions.
Thirdly, managing the increasing frequency of extreme climate events is a priority. The insurance sector believes that it is an area for which stronger cooperation between public and private sector is needed to address the challenges ahead. Insurers and reinsurers possess a unique expertise in climate risks which can be shared with public authorities to facilitate the preparation of crisis management plans, mitigation, and adaptation measures and to achieve quicker recovery to the benefit of the society and citizens. We stand ready to collaborate with the European Commission on its future European Climate Adaptation Plan.
Fourthly, promoting an economy that prioritises innovation for a responsible use of data and artificial intelligence is also a focus. The insurance sector sees opportunities in new technologies to improve the customer journey, facilitate and speed up the claims pay out as well as improving the risk understanding. Experimenting prior to implementing regulations can lead to more informed and effective policies.
Lastly, the insurance industry is dedicated to reinforcing dialogue with consumers and civil society to refine the understanding of needs in the changing society, ensuring that we are providing the best protection and service at an adequate price.
Addressing these challenges is not only about protecting citizens, but also about enhancing and safeguarding the European economic competitiveness and therefore its social model. We are confident that the insurance sector has the means to contribute positively to these challenges, provided that the European Commission, the Council and the European Parliament are translating their ambitions into concrete actions.
Let us work together to achieve Europe’s ambitious objectives.
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