Why 47% of insurers see competition forcing finance change

Regulatory shifts, consumer demands and expansion plans also ranked amongst the top pressures.

Ernst & Young (EY) said insurance chief financial officers (CFOs) are focusing on cutting costs, creating value, and improving the use of technology and talent as they advance finance transformation efforts.

In its 2025 global survey, EY said CFOs are managing priorities such as improving data for decision-making, strengthening capital management, enhancing forecasting, and ensuring compliance with standards, including IFRS 17 and IFRS 9.

However, the report said many insurers are struggling to generate returns from transformation due to fragmented systems, poor data quality, and ongoing market disruptions.

Rising competition was cited by 47% of respondents as the main pressure over the next 12 months, followed by changing consumer behaviour, regulatory changes, and expansion into new markets. 

Around 75% said macroeconomic uncertainty and political tensions have reduced their confidence in the outlook.

To address these challenges, CFOs are simplifying processes, reducing duplication, and increasing the use of shared services and third-party providers. 

They are also investing in workforce skills and adopting technologies such as artificial intelligence to improve efficiency and support growth.

EY said these efforts are aimed at building a more flexible and integrated finance operating model, as CFOs take on a broader strategic role within insurance organisations.