The expert, keynote speaker at the Seguros Summit 2025 conference, an event organized by Jornal Económico and taking place this Tuesday in Lisbon, presented the main challenges for the insurance sector.
At a time when uncertainty has become structural, insurance plays a central role: protecting, predicting, and adapting. Paulo Bracons, Executive Education Program Director at Católica Lisbon, Economist and Insurance and Pension Fund Consultant, was the keynote speaker at the “Seguros Summit 2025,” an event organized by Jornal Económico, which brings together leaders, regulators, and experts to discuss the future of the Portuguese insurance sector and is taking place this morning at Altis Belém. This expert presented the topic: Five challenges (plus one) for the Insurance Sector.
In terms of “Demographics and Health,” the context is difficult. In 2050, one-third of Portuguese people will be over 65, and the average life expectancy at that age will be over 85 (higher for women). But only a little over 65 years will be spent in good health. Portugal is one of the oldest countries in Europe. “Healthy life expectancy will tend to stagnate, and this puts enormous pressure on health systems,” says Paulo Bracons.
According to this expert, the insurance industry has been talking a lot about longevity, but has done little so far. One possible solution, which is already beginning to be part of some insurers' strategy, is for them to increase their presence in the verticalization of the healthcare value chain. In this sense, the “Technology Challenges” have a very specific context: speed of innovation, data management and ethics, explosion of personal, health, and behavioral data; cybersecurity, integration of legacy systems, talent and digital culture, consumer behavioral changes; lack of a structured technological approach (a simple strategy).
The challenges of “Climate Change” have a very precise context: increase in extreme phenomena; fires, droughts, urban floods, and increasing climate risk; damage in frequency and severity; low penetration of natural catastrophe insurance outside the Auto and multi-risk home LoBs; Insurance is still seen as “post-event protection” and prevention mechanisms are still limited; inadequate insurance capital.
Regarding the challenges of “New Behaviors,” in which we are all different, each has a particular context. Portuguese consumers are digital, but they still buy insurance in an analog way, and technology is shaping our behaviors, shifting from ownership behaviors to sharing behaviors, which is changing our lifestyles. ESG is no longer a “fad” but something that has an impact on the P&L (profit and loss accounts), and customers expect simplicity and omnichannel services, but still strongly value the broker, particularly in non-life insurance.
The challenges of “financial literacy” have a very clear context. Less than 40% of Portuguese people have a clear understanding of how insurance works. On the other hand, the “challenges of regulation” are in a context of transition. Portugal has independent, exemplary, and solid insurance regulation/supervision, but it is still very much oriented towards strict compliance with regulations.
The reporting burden and regulatory compliance costs are still considered high. Communication and regulatory literacy among intermediaries and consumers needs to be improved. “Insurance should be the invisible foundation that allows society to move forward even when the ground is shaking,” concludes Paulo Bracons.
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