CEE insurance outlook 2025

The study was prepared jointly with EMIS, a leading curator of multi-sector, multi-country research for the world’s fastest growing markets. It analyses six key insurance markets across CEE (Croatia, Czech Republic, Hungary, Poland, Romania and Slovakia) highlighting how the region is evolving into a core component of Europe’s financial landscape.

Despite inflation and regulatory headwinds, CEE is fast becoming a cornerstone of Europe’s financial resilience. 

While insurance penetration in the region averages 2.2% of GDP compared to Western Europe’s 6%-9.5%, this gap represents substantial untapped potential rather than a weakness. As economic convergence continues, rising consumer sophistication and evolving risk awareness are expected to drive higher adoption across both life and non-life segments.

“This report confirms that Central and Eastern Europe has become a driving force in Europe’s insurance landscape. Strong fundamentals and disciplined underwriting have enabled insurers to withstand economic pressures, while digital transformation and regulatory adaptability are creating a more resilient sector. What sets CEE apart today is building its own competitive advantages through efficiency, innovation and sustainability”,  Małgorzata Pek, Partner and Financial Services Leader, Forvis Mazars in CEE.

“Our analysis shows that CEE insurers are entering a decade defined by strategic resilience. The convergence of financial stability, digital innovation and regulatory discipline is positioning the region as a laboratory for Europe’s next generation of risk management and compliance models. Compliance has become a strategic function that connects technology, governance and trust. Insurers that embed resilience into their operating model will not only meet regulatory expectations but also strengthen their position across Europe”,  Amal Aouam, Director, Group Insurance Regulatory Centre, Forvis Mazars.

AI, innovation and compliance reshaping the market

CEE insurers investing heavily in artificial intelligence, cloud technology and customer-centric innovation to transform claims handling, risk assessment and product design. However, as the report shows, the EU AI Act and DORA regulations introduce new compliance challenges that require balancing efficiency with transparency and governance.

Regulation driving resilience

The insurance sector in CEE adapting to one of the most significant waves of regulatory change in decades. The revised Solvency II Directive, effective by 2027, strengthens capital management and climate-risk integration; the Insurance Recovery and Resolution Directive (IRRD) harmonises cross-border recovery plans; and the Corporate Sustainability Reporting Directive (CSRD) expands ESG disclosure requirements. 

Climate risk and capital strength 

Following the 2024 regional floods. Insurers across CEE are prioritising climate risk modelling, scenario testing and solvency planning. Regulators are embedding climate risk into solvency frameworks and own-risk assessments, while insurers are investing in data-driven models to better predict and manage exposures.