PORTUGAL Trends and Developments Contributed by: Carla Azevedo Gomes, Pedro Malta da Silveira, Miguel Duarte Santos and Camila Cândido, SPS-Barrilero
Market Expansion, Compliance, and Emerging Risks in Portuguese Insurance and Reinsurance Overview The Portuguese insurance market in 2025 was char- acterised by sustained premium growth, increasing regulatory and compliance demands, accelerated dig- ital transformation and a heightened focus on emerg- ing risks. These developments reflect both domestic market dynamics and broader European regulatory and economic trends, which continue to shape the legal and operational environment for insurers and reinsurers operating in Portugal. While the sector has demonstrated resilience and adaptability, insurers face a more complex landscape marked by stricter supervisory expectations, techno- logical dependency, climate-related exposures and evolving consumer behaviour. At the same time, struc- tural features of the market, including a high degree of concentration among leading players, remain firmly in place. This article analyses the main trends and develop- ments affecting the Portuguese insurance and reinsur- ance sector, focusing on six key areas: • sustainable market expansion; • digitalisation and customer experience; • regulatory intensity regarding technology and com- pliance; • emerging risks; • sectoral debate; and • continued market concentration. Sustainable market expansion and solid premium growth In 2025, the Portuguese insurance sector continued to record solid and broad growth in gross written pre- miums, confirming the recovery observed in previous years and signalling a degree of structural consolida- tion in market demand. Premium growth was observed across both the life and non-life segments, contributing to a more bal- anced development of the sector. Life insurance ben- efitted from increased awareness of long-term finan- cial protection, retirement planning and risk mitigation, particularly in the context of demographic ageing and
concerns regarding the adequacy of public social security systems. Non-life insurance experienced continued expansion, notably in health insurance, property insurance and covers linked to commercial and industrial activity. Importantly, this growth was not driven exclusively by price increases. While inflationary pressures and higher claims costs influenced pricing in certain lines, the overall expansion reflects a combination of: • increased insurance penetration; • heightened risk awareness among individuals and businesses; and • diversification of insurance products responding to new and evolving risks. From a prudential and regulatory perspective, this trend supports the financial soundness of the sec- tor, although it also reinforces the need for disciplined underwriting practices and close monitoring of techni- cal profitability. Supervisory authorities remain atten- tive to the sustainability of growth, particularly in seg- ments subject to rising claims frequency and severity. Accelerated digitalisation and customer experience as a strategic priority Digital transformation has become a defining fea- ture of the Portuguese insurance market, with 2025 confirming a shift from incremental technological upgrades to structural digitalisation strategies affect- ing all stages of the insurance value chain. Customer expectations and digital engagement Policyholders increasingly expect fast, intuitive and transparent digital interactions, including online quo- tation, remote contracting, digital policy manage- ment and efficient claims handling. These expecta- tions apply not only to retail customers but also to corporate clients, who increasingly demand real-time access to information and streamlined processes. In response, insurers operating in Portugal have inten- sified investments in digital platforms, mobile appli- cations and customer portals. Customer experience has become a central strategic objective, influencing product design, distribution models and service deliv- ery. Digitalisation is therefore no longer viewed solely
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