Economic and regulatory pressures, technology change, and talent risk are identified as the main concerns for general insurers in Australia and New Zealand, according to research from The Bridge International and the Australian and New Zealand Institute of Insurance and Finance (ANZIIF).
The Heartbeat of General Insurance Report 2025, based on industry-wide survey responses, shows 45% of participants rank the economic and regulatory environment as their primary threat. Technology developments are cited by 42%, with catastrophe and climate exposure identified by 33% of respondents. At the same time, succession planning and workforce stability are reported as ongoing challenges.
The survey includes input from professionals across large and mid-sized insurers, mutuals, specialist and niche carriers, brokers, underwriting agencies, and other market participants. According to the report, 77% of respondents hold board, executive, or senior leadership positions.
Stuart Blake, managing director and co-founder of The Bridge International, said the inaugural study provides the sector with a clear picture of both the prospects and the challenges it is facing. “Notably, economic and regulatory pressures rank as the primary threat ahead of climate change and competitive dynamics. While there is strong confidence in the transformative potential of technology and AI, we’re seeing serious concerns about talent retention and leadership succession. The organisations that will thrive in this increasingly challenging environment are those that recognise leadership, culture, and customer intimacy as their primary differentiator – not just technology or scale,” Blake said.
The report finds that, despite these concerns, overall workplace sentiment is positive. It notes that 86% of respondents describe their workplace in favourable terms, with mutuals, specialist, and niche insurers reporting 100% positive or very positive sentiment.
However, the data indicates that this sentiment does not necessarily align with long-term intentions to remain with current employers or in the sector. The findings show that 39% of respondents have explored changing roles over the past year, and many have considered leaving the general insurance industry altogether.
Confidence in succession planning is limited among larger carriers. Only 17% of respondents from large insurers and 6% from mid-size insurers say they are very confident in their talent pipelines. Brokers and underwriting agencies report higher levels of confidence in their ability to fill key roles.
The report notes that a projected wave of retirements over the next five to 10 years, combined with indications that some professionals plan to exit the sector, may increase the risk of institutional knowledge loss while organisations are implementing operational and technology change.
Katrina Shanks, ANZIIF CEO, said the Heartbeat Report indicates the industry has reached a pivotal moment. “We are optimistic about technology, digital transformation, and new ways of working; but we cannot overlook the talent risks and succession gaps highlighted so strongly in these findings. Now is the moment for insurers to lean into leadership, capability development, and meaningful workforce investment. Those who act with clarity and pace will set the standard for the next era of insurance in Australia and New Zealand,” Shanks said.
On the opportunity side, respondents see technology as a major area of focus over the next three years. Around 68% say their main priority is technology-driven efficiency, while 59% see digital and AI-enabled customer engagement as a significant driver of business growth. Reported areas of planned investment include automation, data use, and customer experience design.
Product design and claims handling also appear in respondents’ stated priorities. According to the survey, 35% nominate product innovation and 35% nominate improved claims experience as important opportunity areas. The report notes that insurers are likely to monitor whether these initiatives contribute to lower expenses and reduced claims leakage, with possible implications for premiums, affordability, and profitability.
The research also examines leadership and capability needs. Strategic vision (63%) and resilience (53%) are identified by respondents as key leadership attributes for managing transformation. Non-board and non-executive respondents place additional emphasis on people leadership and engagement, while AI and data literacy are broadly seen as important skills across leadership and staff levels.
Respondents outline several factors they consider important when assessing employers, including supportive leadership, a strong team environment, and alignment between organisational and personal values. These are reported as being weighed alongside remuneration, training, development opportunities, and flexibility.
The release of the Heartbeat report coincides with external forecasts of ongoing premium growth in both markets. In Australia, GlobalData projects that general insurance direct written premiums will reach $144.5 billion by 2029, reflecting a compound annual growth rate of 8.8%. For 2025, the market is expected to reach $102.8 billion, up 8.6% on the previous year. Climate-related events, inflation, and demand for broader health-related coverage are cited as key drivers.
In New Zealand, GlobalData forecasts an 8.3% compound annual growth rate in general insurance, with gross written premiums projected to reach $16.3 billion by 2029. Property and motor lines are expected to account for nearly three-quarters of the market in 2025, with overall general insurance premiums forecast to grow 10.3% that year, including 10.6% growth in property and 10.3% in motor.
Stuart Brown, partner and insurance practice lead at The Bridge International, said growth expectations will depend on how insurers combine technology and human capital. “The insurance sector is facing a critical juncture; we need to invest in our people and insurance expertise. The next phase of growth won’t come from technology alone, but from how insurers use it to strengthen people and capability. By combining deep insurance knowledge with data, automation, and digital fluency, we can create a workforce that is both skilled and adaptable,” Brown said.
Brown added that survey engagement “shows the industry has a strong heartbeat and there is a genuine passion for the sector from all levels of the workforce,” and said the findings offer insight “from the boardroom to the front line” on what will be required to sustain performance in the Australian and New Zealand general insurance markets.
