Holcim is splitting up its North American and Rest of the Americas divisions. ABB is spinning off its robotics division. Continental is breaking up iIn three parts. Wolfgang Reitzle summed it up in April 2025: It’s no longer the big that eat the small, but the fast that overtake the slow. In technology, mobility, and retail, this has long been considered a law. But does it also apply to the insurance industry? In this episode, Paul the Insurer explores exactly this question.
The insurance industry operates according to different rules than the rest of the economy. Capitalization here is not merely a balance sheet figure, but a matter of credibility. Anyone who wants to underwrite cyberattacks, natural disasters, or global liability programs needs financial depth—and it must be verifiable. No large corporation, no complex risk.
Added to this is diversification. A multinational insurer with a presence across markets, lines of business, and geographies can absorb shocks that would simply derail a niche provider. Life, health, property and casualty, specialty lines: all of these together provide a natural hedge against volatility. And finally, there’s the brand effect. In an industry fundamentally built on trust, an established name opens doors with brokers, regulators, and reinsurers alike—doors that remain closed to newcomers.
The counterexample comes from Silicon Valley
Reitzle’s warning is nonetheless not mistaken simply because it comes from a different industry. Tech-native insurtechs are currently redefining what insurance means. New products are developed in weeks, not years. Artificial intelligence handles underwriting in real time. Customer journeys are mobile, seamless, and free of mountains of paperwork. And increasingly, insurance is no longer recognizable as a standalone product, as it is directly embedded in digital platforms and marketplaces.
These players lack financial strength and brand history. What they do have is something else: a precise understanding of what customers expect in a digital world. And they’re putting pressure on the established giants to adapt or fall behind.
The future belongs to the hybrid model
The result is not a clear-cut either/or scenario. Neither will the conglomerates disappear, nor will the disruptors dominate the field on their own. The future belongs to those who can combine the best of both worlds: the deep pockets and risk expertise of the big players with the agility and user-centric mindset of the digital players. Those who master this combination will lead the next generation of the insurance industry.
Binci Heeb
Paul the Insurer has additional content that might interest you, such as a series of interviews with insurance industry executives.
Listen to and read: The Return of the Druids
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