Volatility and uncertainty – both within individual markets and across regions – define the global insurance industry to an extent not seen in decades. The run of economic prosperity and integration that benefitted the financial services sector for several decades seems gone forever. However, despite many challenges, global insurers have delivered strong performance recently and are poised for steady gains in both mature and emerging economies. Rising demand for core protections and value-add services, plus new possibilities in risk assessment and pricing, are cause for optimism about the future. Directing today’s innovation investments toward protection gaps will position insurers for market leadership tomorrow. Those that target investments in AI-enabled tech and stronger data management capabilities to personalise communications and products will be able to create more value, create it faster and deliver it to more customers and communities than ever before.

Even as shifting global dynamics challenge insurers, the 2025 EY Global Insurance Outlook shows there have never been more viable paths to innovation-led growth across the industry. Indeed, the huge gaps in protections against cyber and climate threats – with 99% of losses from cyberattacks and 60% from natural disasters uninsured – plus the massive shortfall in retirement savings present compelling value creation opportunities. Strategically orienting the enterprise around richer data and fully modernized technology is one critical step.

But whether insurers prioritize new product development…