The international firm Forvis Mazars has published the latest edition of its recurring report, “Strategic Resilience of the Insurance Sector in Central and Eastern Europe: Outlook for 2025.” The findings show that insurers in the region have increased non-life insurance premiums from €18 billion in 2018 to €28.5 billion in 2024 — a 58% increase that outperforms many mature Western markets. Despite inflation and challenging regulatory conditions, Central and Eastern Europe (CEE) is rapidly becoming a cornerstone of Europe’s financial resilience.
“This report confirms that Central and Eastern Europe has become a driving force of the European insurance market. Strong financial foundations and disciplined underwriting have enabled insurers to withstand economic pressures, while digital transformation and the ability to adapt to regulatory change are making the sector increasingly resilient. What sets the CEE region apart is its ability to build competitive advantage through efficiency, innovation, and sustainable development.”
— Małgorzata Pek, Financial Sector Leader for CEE and Partner at Forvis Mazars in Poland
Premium Growth and Strong Profitability
The study analyzed six key insurance markets in the region — Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovakia — highlighting how CEE is becoming an essential part of Europe’s financial landscape. The report shows that combined ratios remain below 1.0 in most non-life insurance markets, indicating solid profitability and strong operational discipline. The Czech Republic and Romania recorded the strongest improvements, with combined ratios improving to 0.86 and 0.95, respectively, compared with the previous year.
Although insurance penetration in Central and Eastern Europe averages just 2.2% of GDP — compared with 6–9.5% in Western Europe — this gap is viewed not as a weakness but as an opportunity. With continued economic convergence, rising consumer awareness and an evolving understanding of risk are expected to drive long-term expansion in both life and non-life segments.
AI, Innovation and Regulatory Compliance Are Transforming the Market
Insurers across CEE are making significant investments in artificial intelligence (AI), cloud technology, and customer-centric innovation to transform claims handling, risk assessment, and product development.
From AI-driven assistants to usage-based insurance and advanced risk forecasting, insurers are leveraging technology to strengthen resilience and improve customer engagement. However, as the report notes, the EU Artificial Intelligence Act and the Digital Operational Resilience Act (DORA) introduce new compliance challenges, requiring insurers to balance efficiency with transparency and governance.
Regulations that Strengthen Resilience
The CEE insurance sector is adapting to one of the most intensive waves of regulatory reform in decades. The revised Solvency II directive, taking effect in 2027, strengthens capital management and climate-risk integration. The Insurance Recovery and Resolution Directive (IRRD) harmonizes cross-border recovery planning, while the Corporate Sustainability Reporting Directive (CSRD) expands ESG disclosure requirements. Meanwhile, the currently applicable DORA regulation establishes new standards for ICT governance and cyber-risk management.
Combined with ongoing implementation of IFRS 17, these reforms are reshaping transparency, accountability, and market stability across the region.
“Our analysis shows that CEE insurers are entering a decade characterized by strategic resilience. The combination of financial stability, digital innovation, and regulatory discipline is turning the region into a laboratory for the next generation of European risk-management and compliance models. Compliance has become a strategic function linking technology, governance, and trust. Insurers that embed resilience into their operating model will not only meet regulatory expectations but also strengthen their competitive position across Europe.”
— Amal Aouam, Director of the Group Insurance Regulatory Center at Forvis Mazars
Climate Risk and Capital Strength
In the wake of major regional floods in 2024, insurers throughout CEE are prioritizing climate-risk modelling, scenario testing, and solvency planning. All six analyzed markets maintain capital buffers well above regulatory requirements, with Croatia and Poland leading in solvency ratios. Regulators are increasingly incorporating climate risk into solvency frameworks and Own Risk and Solvency Assessments (ORSA), while insurers are investing in data-driven models to better forecast and manage exposure — the potential level of risk an insurer may face.
About the Report
The report “Strategic Resilience of the Insurance Sector in Central and Eastern Europe: Outlook for 2025” was prepared jointly by Forvis Mazars and EMIS, combining independent market intelligence with insights from insurance practitioners across the region. It provides a data-driven analysis of premium growth, profitability, digital transformation, regulatory compliance, and climate resilience.
