Successful Turnaround: Now Focus on Costs and Profitability

Performance Improvement as a Strategic Imperative

The insurance industry is under significant transformational pressure. Rising claims costs driven by inflation, intense price competition, increasing regulatory requirements, and high investment needs demand new approaches to achieve sustainable profitability. The result figures from 2020-2024 show that the market is subject to structural cost drivers, and even steady premium growth often lacks sustainable impact on results.

Growth without impact – traditional cost management falls short

In recent years, cost expenditures in the insurance market have continued to rise despite extensive programs aimed at increasing efficiency and reducing costs. Cost ratios stagnate despite digitalization—real efficiency gains and economies of scale remain absent.

Damage expenses also remain at a very high level despite continuous efforts. In certain years, regulatory costs are further driven up by extreme weather, claims inflation, and rising repair costs. In particular, some insurers suffer from significantly increased claims ratios at specific points.

As a result, the Combined Ratio of Germany's top 40 insurers has only been stabilized at a high level between 2020 and 2024 through a significant increase in premiums – with no sustainable improvement in results.

It becomes clear that cost-cutting programs without clear ambition levels, transparent management, and consistent implementation do not achieve a sustainable turnaround in the results situation – and thus no sustainable transformation. Since a future improvement in the Combined Ratio through repeated and permanent increases in premium income seems unattainable for many insurers due to the prevailing competition, a structural restructuring of the cost situation is overdue.

Transformation requires ambition, management, and top-management focus.

Horn & Company provides a clear roadmap for insurers to achieve a short-term turnaround and long-term transformation through focused cost and result management – all under the motto “get green & stay green”. With the following four success factors, Horn & Company offers structure, management, and energy to lead your transformation to success:

Think holistically: Cost and claims management with strategic ambition levels are key to result stability – sales follows as a strategic lever for profitable growth.
Prioritize clearly: Not all measures have the same impact – focusing on actionable measures with high result contribution is critical for sustainable effect.
Implement effectively: Transparent setting of a baseline and ensuring personal involvement in implementation is essential for achieving results in the P&L.
Transform sustainably: Only measures that are clearly guided, consistently pursued, and regularly brought to the agenda will have sustainable results – top-management focus is the lever for transformation.

Let’s shape the turnaround together – let’s connect & turnaround!