In a highly competitive environment, incumbent firms can no longer rely on organic growth or internal innovation. The winners will be those that can forge alliances with innovative start-ups; ally with InsurTech; and consolidate with their peers.
A rapidly changing industry will require unprecedented deal making skills. We reveal how the industry will use M&A, equity partnerships and alliances to advance growth.
Global M&A deal volumes hit unprecedented highs in 2018 and companies have sought growth, access to new markets and products and - increasingly - technology. Against this backdrop, deal activity has figured strongly in the commercial insurance industry trends, and respondents agree that more than half of growth within insurance in the next five years will be a result of M&A. As a result that this will form part of companies long term growth strategies. However, this is not always straightforward as only a quarter of respondents felt they were effective at integrating the target in their last deal.
In chapter three we examine how the industry will use M&A, partnerships and alliances to advance growth as the negotiating table beckons.
The four steps to successful integration
Poorly integrated businesses fail to achieve expected synergies and are at least in part responsible for the complex organisational and technology structures in place that are currently holding back many insurers’ attempts to keep up with more nimble competitors. Integration success requires detailed planning ahead of the deal closing and swift action thereafter.
Read our third chapter to discover the four steps that should be the foundation of any successful integration.