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Accelerated evolution

Accelerated evolution

Accelerated evolution

Insurers are thinking beyond traditional M&A to execute transformational deals that bring sustainable value and innovation to their organization.

For the insurance industry, the need to find new opportunities for sustainable and profitable growth has become imperative. Technology is delivering unprecedented insights at scale, new markets and segments are rapidly created, and new customer value propositions are forming. Insurance leaders recognize that they now have a window of opportunity to innovate and transform their organizations to achieve sustainable competitive advantage in the future.

However, insurers know that they can't achieve these objectives through organic growth strategies alone. They are looking to mergers and acquisitions (M&A), partnerships, and corporate venture capital initiatives as a critical path towards achieving their strategic objectives of transformation and innovation. And expect to accelerate this evolution with strategy-aligned M&A and innovation initiatives over the coming years.

Based on a survey of 200 insurance executives globally, our report, Accelerated Evolution: M&A, transformation and innovation in the insurance industry, illustrates that the successful insurance organizations of the future will be the ones that are already thinking beyond traditional M&A to execute transformational deals that satisfy both the evolving needs of their customer base, and demands from shareholders and investors for strategic capital deployment to enhance enterprise value.

Key findings:

  • To realize value from their deals, insurers need to rethink their approach and their capabilities.
  • Develop a comprehensive framework to assess strategic fit, establish longer-term synergies and design integration plans.
  • Create a clear path to transformation through holistic design thinking.
  • Accelerate innovation by standing up an inorganic innovation engine
  • Resist short-term thinking, transformation is not a “one-and-done” event.
  • This new deal environment and recent trends in M&A and innovation strategies, if executed successfully, have the potential to accelerate the evolution of the global insurance industry.

Accelerated evolution: Executive summary

Accelerated evolution - info graph

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