Münster/Frankfurt, December 4, 2025 – Consolidation in the European insurance market has progressed steadily in recent years. Aside from individual mergers that were agreed based on strategic considerations and a position of strength, the competitive landscape has changed primarily due to structural factors, impacting the positioning of companies in the market. The industry’s moderate growth in key segments since 2019 has barely been enough to cover its rising costs. In addition, fundamental societal changes such as population aging and the resulting shortage of skilled workers have taken their toll. Large-scale investments in digital technologies and escalating regulatory complexity have posed major challenges, especially for small and medium-sized providers. Nevertheless, these insurers in particular still have effective options for securing their autonomy and growing profitably in the future.

This is the key finding of this year’s European Insurance Study conducted by the strategy, IT and management consultancy zeb. Following a preview of the figures, which was published in September, the authors of the study took a closer look at the consolidation of the European insurance market in the period from 2019 to 2024, analyzing over 2,000 insurers with a total turnover of around EUR 1.35 trillion.

Decline in the number of providers, varying market dynamics

Consolidation has left its mark on the European markets, albeit in varying forms and at different speeds. Between 2019 and 2024, the number of insurers in Europe fell by around 160, which corresponds to a decline of more than 7%. Consolidation was particularly strong in the life segment, where the number of providers fell by more than 10%. Over the same period, the market in the life segment grew by only 2.5% per annum. For the non-life segment, the study authors calculated a market growth of 5.6%. The decline in the number of providers in this segment was just under 5%. Countries such as Denmark, Norway and the Czech Republic even saw a double-digit percentage decline. Germany and France, however, showed only slight changes in this half-decade. 

Four key drivers increase pressure on insurers

There are many reasons for the consolidation that has taken place since 2019. The number of providers fell particularly sharply in markets with low growth. Demographic change was an additional factor. In countries with rapidly aging populations, such as Poland or Slovenia, consolidation progressed faster. The old-age dependency ratio rose, demand for traditional products fell, and the shortage of skilled workers worsened. At the same time, insurers’ IT expenditure increased. In Germany, for example, insurers’ IT costs rose by over 30% to almost EUR 6 billion between 2017 and 2022. Digitalization, the modernization of core systems, and new technologies such as artificial intelligence, or strategic challenges such as the establishment of cybersecurity drove up costs. On top of all that, regulatory requirements also increased.

Dieter Kipp, Partner at zeb and co-author of the study, makes the following assessment: “Since 2019, the number of relevant EU regulations for insurers has risen from 12 to 70. A host of requirements regarding sustainability, digital resilience and data protection have come into force. The implementation of these requirements will continue to tie up considerable resources in compliance and IT in the future.”

Options for action for small and medium-sized providers

Against this backdrop, small and medium-sized insurers in particular are faced with a difficult strategic decision. The authors of the study point out three paths. Mergers and acquisitions offer opportunities to increase market share and leverage synergies. However, they also harbor risks such as high transaction costs and complex integration processes. Specializing in a niche can also be a way for insurers to successfully set themselves apart. Small providers with a clear focus continue to achieve above-average growth rates and high profitability. Finally, partnerships are a way of outsourcing parts of the value chain and concentrating on core competencies. Practical examples show that cooperation in sales, claims management or IT is becoming increasingly important and is establishing itself in the market.

Dr. Jan Hendrik Sohl, Partner at zeb and co-author of the study, has the following comment: “Small and medium-sized providers, too, can successfully counter the drivers of consolidation through specialization or partnerships along their own value chains. It is crucial for them to define their position and react flexibly to changes.”

Further details on the study are available at European Insurance Study 2025 | zeb 

About zeb

zeb offers a full range of consulting services in the financial services industry, which is heavily impacted by regulation and digital transformation. Clients include insurers and insurtech companies, banks, neobanks and fintech companies, asset managers, captives, as well as numerous other specialized European financial services providers and financial intermediaries.

zeb was founded in 1992, currently has 1,200 employees and operates offices in Frankfurt, Berlin, Hamburg, Munich and Münster (HQ). Its international offices are located in Amsterdam, Kyiv, London, Luxembourg, Milan, Oslo, Stockholm, Vienna, Warsaw and Zurich. In industry rankings, zeb has repeatedly been classed and acknowledged as the “best consultancy” for the banking and insurance industry.