Insurers set to combine say Fitch, WTW
Tighter profit margins are set to increase mergers & acquisitions in the reinsurance sector according to a new report from Fitch Ratings.
Meanwhile, Willis Towers Watson says that M&A is also likely to see a resurgence in the year ahead following a relatively slow 2016.
Fitch’s report says that those reinsurers with weak profits will be left vulnerable to takeovers, especially as larger firms seek to shore up their own profits through acquisitions.
The report notes that M&A in the reinsurance sector has slowed from the high levels of activity in 2014 and 2015 but that is set to change as lower premium revenue and poor investment yields ignite the thirst for consolidation.
The M&A market will be further boosted by a lack of organic growth due to a large surplus capacity in the market.
The expectation for greater deal activity in the insurance market was highlighted by Willis Towers Watson at the industry summit in Monaco. It pointed to the $126 billion of deals in the sector in 2015 but just $15 billion so far in 2016.
Tech-savvy millennials most likely to be cyber victims
A third of Americans have been victims of cyber attacks in the past year and those in the 18-24 age group are most likely to have been affected.
That’s the finding of a poll conducted for The Hartford Steam Boiler Inspection and Insurance Company which reveals that consumers have paid out up to $5,000 following the incident, mostly data recovery and software purchase; the majority paid less than $500.
“Consumers rely on smartphones, personal computers and tablets for virtually every aspect of their lives,” said Timothy Zeilman, vice president and counsel for HSB, part of
Munich Re. “Their personal information is stored online and increasingly their home systems are connected to the Internet. The threat to cyber security for individuals and families is significant and growing.”
Cyber attacks and online fraud were shown by the poll to be the top concerns among consumers.
Senior hire for Platform Insurance
Canadian brokerage Platform Insurance Management has announced the appointment of T. Neil Morrison as its chairman following a quarter of a century at Hub International.
"We are very pleased to have a proven insurance professional with Neil's business and leadership qualities joining Platform," saidShaun McPherson, Platform's President. "Neil's broad experience across virtually every insurance discipline and his ability to attract and engage great people will be invaluable for continuing Platform's solid performance and growth. We expect that Neil will hit the ground running when he joins us early in the New Year after completing his compensation agreements with Hub."
Morrison is a board member of the Insurance Institute of Canada and served as its chairman for 2014/15.
