2025 Insurance CEO Outlook | KPMG in Ireland

The global insurance industry is moving through a period of significant change shaped by technological breakthroughs, rising climate risks, economic uncertainty, new regulatory requirements and shifting customer expectations.

The KPMG 2025 Insurance CEO Outlook captures the perspectives of insurance leaders across major markets and identifies the trends that will define the next chapter of the sector’s evolution.

These findings are highly relevant to the Irish market, where insurers are dealing with many of the same opportunities and challenges, often with additional local considerations arising from EU regulation, domestic supervisory expectations and the pace of digital transformation within Ireland’s financial services ecosystem.

Niall Naughton

Partner, Head of Insurance

KPMG in Ireland

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Confidence returns in shifting environment

One of the most striking themes in the global report is a renewed sense of confidence among insurance CEOs. Globally, 82 percent report optimism in their company’s growth prospects, which reflects a notable rise from 2024. In addition, 78 percent believe that the wider insurance sector is positioned for growth despite inflation, geopolitical volatility and rising claims costs.

This sense of cautious optimism also reflects what we see in Ireland. While Irish insurers continue to face margin pressure due to inflation and elevated claims trends in motor, property and health, the sector remains resilient. Insurers are adjusting pricing models, refining underwriting approaches and investing in digital capabilities that increase operational efficiency.

The global sentiment aligns closely with the local experience, indicating an industry that is becoming more comfortable operating in an environment of constant change.

AI becomes a strategic imperative

Artificial intelligence is no longer an experimental technology. It is now a core component of insurance transformation. The report highlights that 67 percent of insurance CEOs plan to allocate between 10 and 20 percent of their budgets to AI‑driven initiatives.

For many insurers, AI is delivering tangible results by improving claims processing, strengthening fraud detection, enhancing underwriting accuracy and enabling faster customer service.

Irish insurers are already progressing in these areas, with growing interest in claims automation, algorithmic underwriting and digital customer journeys.

The global findings also highlight significant concerns around responsible AI, transparency and fairness. Ethical considerations are cited as the most prominent barrier to AI adoption, and this is particularly relevant for the Irish market.

With the EU AI Act advancing and GDPR already firmly established, Irish insurers must carefully balance innovation with compliance and trust. Clear governance frameworks, transparent model oversight and responsible data management will be essential components of future growth.

Workforce change and talent challenges

Another recurring insight from the global research is the pressure on workforce skills. CEOs identify AI readiness and competition for specialist talent as two of the biggest obstacles to growth.

As AI becomes embedded across the insurance value chain, the required roles and skills are shifting. Data engineers, actuaries with advanced analytics capabilities, cyber specialists and AI product owners are increasingly in demand.

In Ireland, the competition for digital and analytical skills is well known. The talent market spans not only insurance but also banking, technology, consulting and multinational organisations that attract similar profiles.

The report notes that insurers are not simply reducing roles due to automation. Instead, the majority of global CEOs expect headcount to increase modestly. This aligns with what we observe in the Irish market, where companies are focusing on upskilling, retraining and improving employee experience to retain high‑value talent.

Workforce strategies will need to support a culture that encourages experimentation with AI while safeguarding employee confidence. Organisations that invest in clear career pathways, training programmes and hybrid skillsets are likely to gain a competitive advantage.

Sustainability and climate resilience remain central priorities

Sustainability continues to be a strategic priority for the global insurance sector. Seventy‑two percent of CEOs state that ESG considerations are embedded in their corporate strategy. This focus is especially significant in Europe, where insurers face detailed reporting obligations, climate stress testing requirements and increasing scrutiny from both regulators and customers.

For Irish insurers, the intersection of climate risk, regulatory expectations and long‑term business sustainability is becoming more pronounced. Many insurers are preparing for wider CSRD reporting obligations, enhancements to climate risk management and more detailed disclosures on underwriting and investment decisions.

The global research identifies the complexity of decarbonising supply chains as the most significant barrier to achieving net zero. Irish insurers share these concerns, particularly given the wide range of businesses covered within their portfolios and the challenge of gathering reliable emissions data.

However, the report also highlights growing opportunities. These include climate‑aligned products, renewable energy coverage, weather‑indexed insurance solutions and advisory services that help clients prepare for more severe weather patterns.

Cyber risk remains most significant threat

Cybercrime is identified by 83 percent of CEOs as the largest barrier to organisational growth. This reflects the increasing exposure of insurers to ransomware, data breaches and system disruption.

Cyber insurance remains one of the fastest‑growing product segments worldwide, and Ireland is no exception. Irish insurers that can combine advanced cyber coverage with risk advisory services are well positioned to support customers and strengthen their competitive position.

Download the full report

KPMG 2025 Insurance CEO Outlook

(PDF, 661MB)

Download 2025 Insurance CEO Outlook

Get in touch

If you would like to explore what the 2025 Insurance CEO Outlook means for your organisation, or if you need guidance on AI strategy, regulatory developments, sustainability requirements or operational transformation, please contact our insurance team in Ireland.

We would be delighted to support you.