KMPG: Insurers in search of acquisitions

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The most recent report from KPMG Worldwide has revealed that insurance coverage corporations – in a bid to upstage new competitors – have turned to acquisitions and partnerships to rework and develop their companies.

The report, entitled “Accelerated evolution – M&A, transformation and innovation within the insurance coverage business,” surveyed 200 insurance coverage executives from across the globe to achieve perception in M&A, technique, and innovation approaches.

Notably, the report discovered that 80% of the insurance coverage executives surveyed mentioned that they count on to hunt between one and three acquisition targets and/or partnership alternatives over the subsequent three years.

The vast majority of insurers surveyed answered that they’re aspiring to make acquisitions that would “remodel” their group for the longer term, as an alternative of merely including to their present enterprise and working fashions. Over 60% of survey individuals mentioned reworking their enterprise or working mannequin can be the important thing components driving their M&A exercise, whereas solely 21% mentioned enhancing their present mannequin was the important thing issue.

The auditor means that this development is a response to extremely disruptive insurtech start-ups.

“Insurers are competing for market share in a slow-growth atmosphere, that’s experiencing an inflow of dynamic new insurtech gamers,” commented KPMG Worldwide head of world insurance coverage Laura Hay. “They know they’ll’t rely simply on natural progress to satisfy their goals, so alliances and acquisitions grow to be important as insurers look to interact with clients in new and other ways, and achieve entry to revolutionary working capabilities and expertise infrastructure to reshape their enterprise and drive future progress.”

Different key findings of the report embrace:

A majority of insurance coverage executives are in search of inorganic alternatives outdoors their nation of domicile – 66% count on to conduct cross-border offers, whereas 32% say they count on offers to be centered domestically.
North America – significantly the US – is extensively anticipated by survey individuals to have essentially the most insurance coverage M&A exercise within the coming three years.
Solely 10% and seven% of individuals mentioned that they’re “extraordinarily possible” to discover a deal that could be a strategic match for his or her enterprise and working fashions, respectively.
72% mentioned their deal sourcing goals aren’t extremely aligned with their company technique.
72% of surveyed executives rated their capabilities for evaluating an M&A goal’s strategic match as “average” to “low”.


Associated tales: 
Related Businesses acquires Barry Spitzer and Associates
Massachusetts-based insurance coverage company makes its 29th acquisition


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