“From 2019 to 2021, we noticed a rise within the quantity in dealmaking. However in 2022, as we entered a state of hyperinflation, rates of interest spiked quicker than I feel people anticipated, and it created a variety of uncertainty,” Chen instructed Insurance coverage Enterprise.
Squeezed by larger rates of interest, gamers tightened their budgets. Many insurers shifted in direction of margin enchancment, specializing in price and strategic progress whereas de-prioritizing acquisitions.
Deal quantity within the US and Bermuda in 2022 dropped greater than 27% in comparison with the yr earlier than, in accordance with Deloitte. General deal worth tumbled 69% from 2021.
What are the highest insurance coverage M&A tendencies of 2023?
One of many largest tendencies is a rise in embedded insurance coverage, which is able to see insurance coverage firms converging an increasing number of with non-insurance gamers.
