Mergers and Acquisitions in the Insurance Industry Expected to Rise

A recently released survey of insurance executives predicts a rise in M&A, and identifies the impact of new regulations and legislation as the biggest threat to insurance industry.
According to the 2014 Insurance Industry Outlook Survey from KPMG, the insurance industry may see a rise in strategic acquisitions moving forward, as the majority of insurers are "investing in customer programs, talent, and technology to grow their businesses and gain a competitive advantage" according to a KPMG press release accompanying the survey.

The survey's key findings include that a majority of the insurance industry executives surveyed (54%) indicated that their company was likely to be involved in M&A as a buyer over the next 12 months. That result is up from one-third (34%) last year.

The survey also listed the top three "drivers of transformation" over the next three to five years as customer demand, coping with change in technology and domestic competition.

Significantly, more than one-third (34%) of the insurance executives surveyed identified the biggest threat to their business models as the impact of new regulations and legislation. The second largest threat identified in the survey was losing share to lower-cost producers.

Read the full survey:

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