As we enter a new decade the outlook for the insurance industry has never been more finely balanced. The green shoots of market hardening that first emerged in 2018 appear to have taken root in 2019.
Losses from natural catastrophes were down. And innovative technologies that promise benefits across the entire re/insurance value chain are maturing. But challenges remain. Political and economic headwinds are strengthening and only moderate growth is forecast, with loose monetary policy showing few signs of easing. And the impact of climate change is becoming difficult to ignore, making the risk outlook more difficult to predict.
It is against this backdrop that (re)insurance businesses around the world are seeking growth – looking to balance the risks they face by pursuing the right opportunities to deliver the right growth.
M&A activity continues to be a crucial route to growth for (re)insurance businesses – with the volume of transactions hitting a four-year high even if the year was a tale of two halves, and mega-deals remaining a feature over the past twelve months, with 20 transactions valued at more than USD 1 billion in 2019.
Clyde & Co's Insurance Growth Report 2020 is split into three parts.
This first report offers an overview of the M&A activity across the globe by bringing together data on completed mergers & acquisitions with expert analysis from our partners around the world.
The report analyses the key trends behind the figures – including market remediation, the desire for baked-in technology and regulatory change across the globe – and examines the changing picture for transactions across borders and regionally. While overseas targets remain popular for M&A, there has been a defined shift in buying patterns, and deal-makers in the US, Europe, Asia Pacific and MEA are having to proceed in the face of challenges unique to their regions, not least the US presidential elections, Brexit and the coronavirus.
The report also throws a spotlight on the distribution dynamic, as availability of new, better and different distribution channels to secure access to customers continues to be a key growth driver that spans a number of areas of the market. We look at how technology is both aiding and disrupting channels including bancassurance, MGAs and the Lloyd's market.