The insurance industry is facing a stubborn problem: even as premiums rise due to inflation and repricing, the protection gap—the difference between the insurance people need and what they actually have—is not shrinking. In fact, at times it seems to be getting bigger.
This topic was front and center at the Insurtech Insights Europe 2026 event held recently in London. Leaders from major companies gathered to discuss why this gap persists and what might help close it.
David Sütterle, the group chief digital and transformation officer at global reinsurer SCOR, pointed out that the protection gap has either stayed the same or grown. He suggested it’s not enough to just look at price increases; the industry must find ways to cover risks that currently have no insurance solutions.
Another key theme was how much of the gap comes down to confusion and lack of understanding rather than just cost. Cara Morton, CEO of global businesses and operations at Zurich Insurance, shared everyday examples where people simply don’t grasp when one type of coverage ends and another begins—like the difference between business and leisure travel insurance.
The panel agreed that better education could unlock growth. Instead of treating the protection gap as only a pricing or product issue, insurers and agents should think about how they communicate with customers. Morton emphasized that stopping incidents before they lead to claims changes the whole value of insurance. Zurich is already moving in this direction through their acquisition of BOXX, a cyber protection firm focused on prevention.
On another front, the speakers talked about how insurers must manage the challenge of operating at a global scale while still staying relevant locally. Morton described Zurich’s “country-first” approach that balances local needs with global strengths in technology and operations. She said this model proved especially useful during the COVID-19 pandemic, helping keep business running smoothly. For reinsurers like SCOR, Sütterle stressed that success is more about being diversified worldwide than just being big.
Both leaders also highlighted the rising complexity of risks today. They said no single company can handle all the challenges alone. Collaboration across the industry is vital. Sütterle noted that while technology like autonomous systems exists, it isn’t widely used yet because of missing infrastructure, regulatory alignment, and public trust. He outlined a process of education, testing, and learning as essential to handling these systemic risks.
Overall, the event showed that closing the protection gap won’t be fixed by pricing alone. Helping customers understand what they need, preventing losses before they happen, and working together across borders are all part of the way forward. The insurance world is grappling with bigger and more varied risks, and these conversations point to new paths for growth and better protection for everyone.