Manage risk while reinventing how trust is engineered.

A Global Industry, Built to Manage Risk

Global financial services form one of the world’s most systemically important industries, with the global banking system now intermediating $468 trillion in assets and a global insurance market worth $7.8 trillion in gross written premiums in 2025.

This scale spans every major hub:

United States: the world’s largest insurance market, with $4.0 trillion in gross written premiums, over 40% of the global total.
United Kingdom: Europe’s largest insurance sector, with $554 billion in premiums, alongside a $13.3 trillion banking sector that makes it the world’s largest hub for cross-border lending.
Germany: home to one of the world’s largest insurance groups by premium income, anchoring Europe’s biggest insurance market alongside France.
France: one of Europe’s most integrated bancassurance markets, combining large scale retail banking with diversified insurance and asset management operations.

Companies across the sector share the same challenge: modernising legacy infrastructure and meeting rising expectations for digital, AI powered services, while navigating tightening capital and data regulation. This is where ABGi operates, helping them secure R&D tax credits and innovation funding to power that transformation.

Key Strategic and Operational Challenges for the Sector

Digital Transformation and Legacy Systems

Modernising core banking and insurance platforms while maintaining continuity of critical financial infrastructure.

AI Adoption and Governance

Deploying AI for underwriting, fraud detection and customer service, while managing model risk and regulatory scrutiny.

Cybersecurity and Data Protection

Defending increasingly digital financial infrastructure against rising volumes and sophistication of cyber attacks.

Regulatory Complexity

Navigating evolving capital requirements, data protection rules and cross border regulatory frameworks.

Rising Customer Expectations

Meeting demand for seamless digital experiences, embedded finance and personalised products across banking and insurance.

Margin Pressure and Rate Sensitivity

Managing profitability amid shifting interest rates, claims inflation and intensifying competition from fintech entrants.

Key figures for the sector

$ 468T

Assets intermediated by the global financial system in 2025

$ 7.8T

Global insurance market size in 2025, measured by gross written premiums

$ 1.3T

Net income of the global banking industry in 2025, a record high

81%

Share of insurers globally using AI to reduce operational costs

Focus on the 4 Strategic Levers

Innovation

Research and development of AI powered underwriting, fraud detection and credit risk models.
Development of embedded finance and insurance products integrated into non-financial platforms.
Innovation in parametric and usage based insurance models tailored to individual risk profiles.

Operations & Performance

Modernising core banking and policy administration systems to improve speed and reduce costs.
Streamlining claims processing and loan origination through automation and digital workflows.
Building more resilient operating models to absorb rate volatility and rising claims costs.

Technology

AI and machine learning to enhance risk assessment, personalisation and operational efficiency.
Cybersecurity technologies to protect financial data and critical transaction infrastructure.
Cloud and API based architectures to enable faster product development and open banking.

ESG & Sustainability

Integrating climate risk into underwriting, lending and investment decisions.
Scaling green finance products, from sustainable bonds to climate linked insurance.
Improving financial inclusion through digital access to banking and insurance services.