cyprus insurance — The Cyprus insurance sector is showcasing resilience as global CEO confidence wavers, according to Constantinos Rossides, Director and Head of Actuarial Services at PwC Cyprus. Recent findings from PwC’s 29th Global CEO Survey and the firm’s 15th annual CEO Survey in Cyprus reveal contrasting sentiments between local and global insurance leaders.
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Cyprus insurance: Shifting Perspectives Among Global Insurance Leaders
In a survey involving 4,454 chief executives across 95 countries, only 46 per cent of CEOs in the insurance sector expressed optimism about their company’s revenue growth prospects for the next year. This figure has dropped from 56 per cent recorded in 2025, highlighting a growing sense of uncertainty among global leaders.
Local Optimism Amid Global Hesitation
Despite the declining confidence observed globally, Cyprus’ business leaders remain optimistic about their revenue growth prospects. According to Rossides, this optimism persists even in the face of geopolitical, technological, and economic pressures. In fact, the premium production in Cyprus showed impressive growth in 2025, with an approximate 9 per cent increase in the life sector and an 8 per cent rise in general insurance sectors, outpacing many European markets.
The Role of Cyber Resilience in Insurance
As the insurance landscape evolves, the survey indicates a more complex risk environment for global insurers. Approximately 28 per cent of global insurance CEOs identified cyberattacks as their primary threat, alongside concerns regarding technological transformation and macroeconomic instability.
Local Concerns: Talent Shortage and Geopolitical Instability
In Cyprus, however, the main concern is different. A significant 43 per cent of local CEOs cited a lack of talent with the right skills as their foremost challenge, followed by geopolitical instability at 30 per cent, and the pace of technological change at 22 per cent. Cyber threats, while less of a concern compared to the global average, still affect 21 per cent of respondents in Cyprus.
Rossides emphasised the importance of strengthening cyber resilience to protect organisations and maintain customer trust, noting that insurance companies are exposed as both targets of cyberattacks and providers of coverage for cyber-related risks.
Navigating the Challenges of Artificial Intelligence
Artificial Intelligence (AI) is seen as a significant opportunity for the insurance sector, but its integration poses challenges. Rossides remarked that the real difficulty lies in aligning AI with business objectives and ensuring teams possess the necessary skills to leverage its benefits.
AI’s Impact on Revenue and Costs
Globally, only 13 per cent of insurance CEOs reported substantial revenue growth or cost reductions from AI adoption. In Cyprus, while 22 per cent of CEOs observed some increase in revenue or decrease in costs due to AI, 69 per cent reported little or no change in revenue, and 60 per cent noted little impact on costs. Rossides highlighted that AI is not yet a guaranteed profitability driver in the insurance industry.
Mergers and Acquisitions: A Growth Strategy
Mergers and acquisitions continue to be a focal point for growth within the insurance sector. Rossides noted that nearly three-quarters of CEOs view M&A activity as essential for enhancing competitive positioning and market share. This trend confirms that market concentration remains a strategic priority, particularly in mature or fragmented markets.
The Bancassurance Model in Cyprus
The restructuring of the local insurance sector reflects these trends, with large banking groups either acquiring insurance companies or increasing their stakes in existing firms. As a result, a substantial portion of domestic premiums is now generated by insurance companies affiliated with banks, underscoring the dominance of the bancassurance model in Cyprus.
Embracing Innovation and Human Resources
Despite the challenges, Rossides remains optimistic about the foundations of the Cypriot insurance sector. CEOs appear committed to maintaining growth by investing in innovation, enhancing human resources, and mitigating modern risks. This proactive approach aims to leverage synergies between banks and insurance companies effectively.
Transforming Uncertainty into Opportunity
With clear strategies focused on addressing current challenges, Rossides believes the Cypriot insurance sector has the potential to turn uncertainty into opportunity. By cultivating a market that is stronger, more resilient, and adaptable to future developments, the sector can thrive in a changing landscape.
