As a business owner, would you rather work with an insurance broker who knows exactly what they’re doing, or an insurance broker who has quite a good idea about what they’re doing but wouldn’t call themselves an expert? Last week you were reading Global Semiconductor Chip Crunch Causing Headaches For Insurers. This week we’re bringing you:
When the COVID-19 pandemic first landed in North America, insurance dealmakers slammed on their brakes. There was an immediate halt in mergers and acquisitions (M&A) because buyers and sellers simply didn’t know what they were up against or how the pandemic would impact the economy.
But the slump did not last for long. M&A deal activity among insurance distribution firms – including retail brokers, wholesale brokers, managing general agents (MGAs) and reinsurance brokers – picked up dramatically from June 2020 onwards, and, since then, the market “hasn’t missed a beat” and the number of transactions continues to climb, according to Steve Webersen, managing director of insurance research at Conning.
When it comes evaluating the state of the distribution dealmaking market, the number of transactions completed is often a better indicator than the transaction values, because so many deals are announced without disclosing pricing, terms, and conditions.
Property and casualty insurer Travelers Companies Inc. reported a 48% jump in quarterly profit that beat analysts’ estimates on Tuesday, as lower catastrophe-related claims cushioned a hit from investment losses.
The company’s core income rose to $1.04 billion, or $4.22 per share, in the first quarter ended March 31, from $699 million, or $2.73 per share, a year earlier.
Analysts on average had expected a profit of $3.57 per share, according to Refinitiv IBES data.
New York-based Travelers, often seen as a bellwether for the insurance sector as it typically reports before its industry peers, said net written premiums rose 11% to $8.37 billion in the quarter.
The insurance industry had over the past two years faced claims from businesses losing revenue because of the coronavirus-led crisis and canceled events among others, even though many have been insulated by virus exclusions in their contracts.
While pandemic-related claims have slowed, the insurance industry now faces hefty claims from the Ukraine crisis as sanctions ratchet up and the war drags on.
S&P Global said earlier this month insurance losses from the Ukraine conflict could total $35 billion, with cyber one of the classes of insurance most exposed.
As a business owner, would you rather work with an insurance broker who knows exactly what they’re doing, or an insurance broker who has quite a good idea about what they’re doing but wouldn’t call themselves an expert? The answer is obvious. Medium and large-sized businesses want to work with specialised brokers.
The days of commercial insurance “generalists” are fast coming to an end – and it’s easy to understand why.
We are in the middle of one of the most complex and interconnected commercial risk landscapes in history. We are two years (ongoing) into a global coronavirus pandemic, and months into a war in Ukraine, which has caused geopolitical shockwaves worldwide. We are experiencing economic inflation of such significance that many countries are in a cost-of-living crisis, and we are also battling a changing climate which is causing more frequent and severe natural disasters around the world.
At the same time, we are navigating a period of immense and rapid change in the digital ecosystem, with technological innovation that is creating both opportunities and challenges (especially in the form of cyber exposures) for businesses across all sectors.
Finding highly affordable leads to keep sales coming in
At iLeads, we have many great solutions for insurance agents at a low cost. If you’d like to see how we can help you bring in consistent sales for a great price, give us a call at (877) 245-3237!
We’re free and are taking phone-calls from 7AM to 5PM PST, Monday through Friday.
You can also schedule a call here.
