Insurance sector overview: From transaction to relationship

The insurance industry is undergoing a profound rethink, less a transformation with a defined end point, and more a continuous reimagining of how insurers create value for customers.

Technology is moving fast, customer demands are shifting, and the operating models that sustained insurers for decades are being tested like never before.

Ireland’s insurance landscape is shaped by a mix of local incumbents, international players with EU hubs in Dublin, and a regulatory environment that has grown more sophisticated under the oversight of the Central Bank of Ireland.

As a result, insurers must navigate both global disruption and distinctly Irish market dynamics.

Niall Naughton

Partner, Head of Insurance

KPMG in Ireland

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Rethinking growth models

Insurers are facing tough questions about their future growth. Mergers and acquisitions remain active across Europe, and Ireland continues to attract international interest due to its stable regulatory framework and access to the wider EU market.

Yet leaders are scrutinising whether their current operating models are truly scalable for the next three to five years. The challenge is to align people, processes, technology, and data to support growth while staying responsive to customer needs.

Workforce demographics add urgency. With a “silver tsunami” of retirements expected in underwriting, claims, and other specialist areas, insurers must tackle imminent talent gaps.

This means modernising recruitment approaches, rethinking career pathways, and ensuring employees are equipped with the skills to thrive in a digital, AI‑enabled environment where decision‑support tools and automated workflows become part of the day‑to‑day.

Customer demands as a catalyst

Customers are increasingly driving change in the sector. They want insurance to be simple, transparent, and personalised.

The idea of a “total customer view”, a connected ecosystem that enables customers to see and manage their entire insurance relationship, is gaining traction.

Customer demands will push insurers toward greater personalisation, seamless journeys, and an experience that feels easy rather than frustrating.

Yet examples of true consolidation and cross-selling remain rare. For most, insurance remains fragmented, with consumers mixing and matching carriers by product.

What sets leading organisations like USAA apart is their philosophy of relationship, not just product. They understand life stages and moments that matter and proactively engage customers at those points.

While Irish insurers operate in a different cultural and regulatory environment, the underlying principle of relationship‑led service is increasingly relevant locally.

Learning from the extremes

The sector today sits between two poles. At one end are organisations like Lemonade, impressing customers with slick, digital-first simplicity. At the other are brands like USAA, winning trust and loyalty through consistency, comfort, and a strong sense of security.

Most insurers, especially in Ireland’s relatively traditional market operate somewhere between these extremes. The challenge lies in blending efficiency with empathy: delivering rapid digital service without losing the human connection that customers still value, especially when dealing with complex claims or sensitive life events.

Culture and colleagues matter

Delivering great customer experiences depends on creating great colleague experiences. Colleague and customer experience are tying together more than ever. By equipping employees with the right tools, skills, and cultural mindset, insurers can deliver the kind of service that feels seamless, jargon-free, and human.

The real challenge lies in blending efficiency with empathy: delivering rapid digital service and intuitive self‑service options while preserving the human connection that customers still value, especially when dealing with complex claims, vulnerable circumstances, or emotionally sensitive life events.

Achieving this balance requires thoughtful design, investment in both technology and people, and an understanding that digital acceleration should enhance, not replace, human judgment.

The shift to customer-centric insurance

The insurance industry is undergoing a fundamental shift, moving from a transactional model to one built on enduring relationships. This transformation is driven by rapidly evolving technology, changing customer demands for personalised and seamless experiences, and the urgent need to address talent gaps in a digital, AI-enabled environment. Insurers who can effectively align people, processes, technology, and data to foster a ‘total customer view’ and engage proactively across the value chain will be the true winners.

Alissa Ristic

Managing Director, Customer and Operations

KPMG in the US

Insurance has “pockets of greatness,” but the task is scaling those across the industry. The direction of travel is clear: toward more personalised, digitally enabled, and customer-centric models.

The winners will likely be those who shift from a transactional mindset to one built on relationships. That means serving customers not just at the point of sale or when processing a claim, but across the broader life stages and events that matter most, from buying a first home to welcoming a new child or planning for retirement.

For Ireland’s insurers, this represents not just an operational reset but a fundamental mindset shift, one that positions long‑term trust, data‑driven insight, and human‑centred service as the core and sustainable drivers of future competitiveness.