Forvis Mazars CEE insurance 2025 outlook: regional insurers show resilience amid digital acceleration and regulatory reform

Forvis Mazars Group, the international leader in audit and assurance, tax and advisory services, in collaboration with EMIS, unveils its CEE Strategic resilience in insurance: outlook 2025, revealing that the region’s insurers have expanded non-life premiums from €18 billion in 2018 to €28.5 billion in 2024, a 58% surge that outpaces many mature Western markets. Despite inflation and regulatory headwinds, Central and Eastern Europe (CEE) is fast becoming a cornerstone of Europe’s financial resilience.

“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.”, notes Małgorzata Pek, Partner and Financial Services Leader, Forvis Mazars in CEE.

Premium growth and profitability resilience

The study 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. The report highlights that combined ratios remain below one in most non-life markets, demonstrating healthy underwriting profitability and operational discipline.

While insurance penetration in CEE 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.

AI, innovation and compliance reshape the market

CEE insurers are investing heavily in artificial intelligence, cloud technology and customer-centric innovation to transform claims handling, risk assessment and product design.

From AI-powered assistants to usage-based insurance and predictive underwriting, insurers are leveraging technology to strengthen resilience and client engagement. 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 is 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. The Digital Operational Resilience Act (DORA), now in force, sets a new benchmark for ICT governance and cyber risk management. Together with the continued implementation of IFRS 17, these reforms are reshaping transparency, accountability and market stability across 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.”, underlines Amal Aouam, Director, Group Insurance Regulatory Centre, Forvis Mazars.

Climate risk and capital strength

Following the 2024 regional floods, insurers across CEE are prioritising climate risk modelling, scenario testing and solvency planning. All six markets analysed maintain capital buffers well above regulatory requirements, with Croatia and Poland leading on solvency ratios. 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.

Strengthening sector performance in Romania

Romania stands out as one of the region’s most dynamic yet structurally evolving insurance markets. Despite elevated claims evolution - net claims grew by 43.7% year-on-year - Romania significantly strengthened its underwriting discipline. The market combined ratio improved to 0.95, down from 1.02 in 2021, driven by operational restructuring and increased efficiency.

“Romania’s insurance market is adapting and is on a good path to delivering results. The improvement in the combined ratio and the reduction in the expense ratio show that the market is becoming more disciplined, more efficient and better aligned with European supervisory standards.”, explains Alina Simion, Director, Audit & Assurance, Forvis Mazars in Romania.

According to the Romanian Financial Supervisory Authority (ASF), the first half of 2025 confirms this stabilising trajectory. Gross written premiums reached RON 12.3 billion, an increase of approximately 8% compared to the same period in 2024. General insurance remains dominant, accounting for around 79% of total premiums. Motor insurance (MTPL and CASCO) remained the main lines of business, with a cumulative volume of RON 7 billion. MPTL alone reached RON 5.2 billion, up by 10%.

Life insurance demonstrated strong momentum, expanding by around 21% in H1 2025, also according to ASF. Notably, unit-linked products surged by 41%, now representing about one-third of all life insurance subscriptions - an indication of growing consumer appetite for savings-linked and investment-driven protection products.

Operational efficiency has also become a key priority. Romania achieved one of the most significant cost optimisations in CEE, with its expense ratio decreasing to 0.31 in 2024, down from 0.45 in 2018. This transformation reflects extensive digitalisation, strengthened governance, enhanced supervision - following the ASF–EIOPA balance sheet review - and broader market consolidation.

As the regulatory agenda intensifies, compliance is transitioning from a technical requirement to a strategic differentiator.

“Romanian insurers are entering a phase where regulatory change is no longer just about meeting deadlines - it is shaping business models. The combined pressures of DORA, Solvency II revisions and the first CSRD reporting cycle are accelerating investment in data, controls and operational resilience. Insurers that treat this as a strategic transformation rather than a compliance exercise will be the ones securing long-term competitive advantage.”, highlights Răzvan Butucaru, Partner, Financial Services & Advisory Leader, Forvis Mazars in Romania.

With insurance penetration still at 1.3% of GDP, one of the lowest levels in the EU, Romania retains significant untapped potential. Rising consumer demand for protection, regulatory-driven market improvements and strengthening operational capabilities point toward a market that is gradually transitioning to a more balanced, resilient and growth-oriented model.

About the report

CEE strategic resilience in insurance: outlook 2025 was jointly prepared by Forvis Mazars and EMIS, combining independent market intelligence with insights from insurance practitioners across CEE. The report offers data-driven analysis on premium growth, profitability, digital transformation, regulatory compliance and climate resilience.

Download Forvis Mazars’ CEE strategic resilience in insurance: outlook 2025.

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About Forvis Mazars

Forvis Mazars Group SC is an independent member of Forvis Mazars Global, a leading professional services network. Operating as an internationally integrated partnership in over 100 countries and territories, Forvis Mazars Group specialises in audit, tax and advisory services. The partnership draws on the expertise and cultural understanding of over 40,000 professionals across the globe to assist clients of all sizes at every stage in their development.

Visit forvismazars.com to learn more.

About Forvis Mazars in Romania

In Romania, Forvis Mazars has 30 years of experience in audit, tax, financial advisory, outsourcing, consulting, and sustainability. We empower over 370 people to deliver our promise to clients with confidence.

Visit forvismazars.com/ro to learn more.

About EMIS

EMIS is a leading curator of multi-sector, multi-country research for the world’s fastest growing markets, providing a unique combination of research from globally renowned information providers, local and niche specialist sources, with own proprietary analysis and powerful monitoring and productivity tools. EMIS delivers trustworthy intelligence for over 370 industry sectors and over 16m companies (including +190k M&A and ECM deals) across 197 markets. Everything you need in one place where actionable insights are facilitated by leading technology. EMIS is part of ISI Markets.