Insurance

Insurance CEOs are optimistic about future growth, driven by rapid AI adoption, high-impact M&A, and a focus on operational efficiency. Leaders worldwide are prioritizing workforce upskilling and building trust in AI, while navigating regulatory pressures. Despite ongoing uncertainty, the sector remains confident in achieving profitable growth through effective risk management and customer service that blends human and technological strengths.

Explore how insurance CEOs are combining technology and human expertise to build resilient, future-ready organizations. Download the report to uncover the trends, challenges, and opportunities that defining the insurance industry worldwide.

Keep reading for insights from Luxembourg insurance leaders.

Key findings for Luxembourg

Economic
AI
ESG

Economic outlook and resilience

Luxembourg CEOs also express strong confidence in the growth of their organizations and the wider insurance industry. However, 75% remain neutral or less optimistic regarding the broader national and global economic landscape.

Short-term decision-making is primarily driven by regulatory pressures, a challenge felt more acutely by Luxembourg leaders than by their global peers. This is followed closely by the integration of artificial intelligence (AI), technological disruption, talent acquisition and retention, and cybersecurity concerns.

To mitigate pressing business risks over the next three years, every surveyed CEO in Luxembourg plans to increase investment in regulatory compliance and reporting. Furthermore, 80% will prioritize cybersecurity and digital resilience, followed by AI integration into operations and technological innovation for business expansion.

In today’s unpredictable environment, leadership capabilities are shifting. The most essential traits identified include the ability to prioritize risk management, greater agility for fast decision-making under pressure, and the capacity to lead complex cultural transformations through a collaborative, cross-functional style.

AI-powered technological innovation

AI stands as a top investment priority for all Luxembourg respondents. While leaders are learning as they navigate this evolving landscape, over 75% have already successfully deployed several AI initiatives. Most maintain a cautious optimism about their organization’s ability to keep pace with the speed of AI development and its effects on the workforce.

The primary benefit of AI implementation is an immediate lift in efficiency and productivity. By automating routine operations and removing administrative burdens, firms can empower their employees to focus on more enriching, impactful work.

Global challenges in implementing AI

Tuning your workforce into and AI world

However, security and compliance remain significant challenges, particularly due to professional secrecy constraints that hinder AI implementation. While ethics are not viewed as a major obstacle, data readiness and technical skills required for implementation stay top of mind. Despite these challenges, Luxembourg CEOs remain confident in their employees’ ability to adapt to and adopt these new technologies.

More than 75% of Luxembourg’s insurance CEOs are actively hiring tech and AI specialists to bolster their teams. While AI will inevitably automate certain activities, insurers do not anticipate an overall reduction in headcount in the short term. Instead, the focus is on evolution: redesigning roles, upskilling talent and transitioning staff from traditional functions to AI-enabled positions.

Achieving strategic advantage through environmental, social and governance (ESG)

Regulatory compliance and reporting remain key priorities for Luxembourg insurers, even after the EU’s recalibration of CSRD ambitions. At the same time, the recalibration creates a window for insurers to go beyond compliance: many leaders are now aligning sustainability goals with core business strategies and investing in new sustainable solutions. A portion of respondents also reported scaling back some ESG initiatives to rebalance resources toward other business opportunities.

KPMG 2025 Insurance CEO Outlook

Explore how insurance leaders are leveraging AI, deal-making, talent strategies, and risk management to build future-ready organizations

Download the report

The 11th edition of the KPMG CEO Outlook, based on insights from 1,350 CEOs, offers a unique perspective on their mindset, strategies, and planning approaches. This report focuses exclusively on the 110 Insurance CEOs surveyed, representing life, auto, home, property and casualty, health, reinsurance and broker organizations. Download the report to uncover the trends, challenges, and opportunities that defining the insurance sector.

Why download the report?

By downloading the 2025 Insurance CEO Outlook report, you will:

Learn why 82% of insurance CEOs are confident in their company’s growth prospects for 2025, despite ongoing uncertainty.
Discover how 73% of CEOs are prioritizing AI investments to streamline underwriting, claims, and customer experience.
See how 77% of CEOs identify workforce transformation and upskilling for AI as a top constraint — and opportunity — for future growth.
Understand how 83% of CEOs are focused on strengthening risk management and cyber resilience to protect their organizations and customers.

Unlock the perspectives and strategies that will help you lead with confidence and shape the future of insurance.

Some of the data in this article was published by KPMG International.

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