Insurance Growth Report 2022 – Mid-year update : Clyde & Co

Insurance Growth Report 2022 – Mid-year update : Clyde & Co

1.    Market sentiment remains positive – for now

Against a testing political and economic backdrop for the insurance industry, carrier sentiment around growth varies across territories and industry sectors.

2.    No shortage of capital to deploy

Private equity interest in the insurance industry remains buoyant, especially with respect to the broker space. Funds are awash with capital and keen to deploy it in a sector they increasingly view as giving attractive and reliable returns.

3.    Run-off and divestments remain popular

One area which has seen a significant increase in transactions in the first half of 2022 has been the divestment of non-core assets by carriers, with non-life divestments involving a mixture of spinning off divisions/subsidiaries for sale to third parties, sales of renewals rights, portfolio transfers, and run-off.

4.    Insurtechs facing bumps in the road 

Investment into the insurtech sector has soared in recent years, reaching a record level last year, but a decline in the valuation of tech companies which have recently gone public began late last year.

5.    Cyber remains an opportunity and a threat

Cyber has seen a boom in both insurance capacity and the creation of specialised brokers and carriers in recent years, but the risk is becoming something of a double-edged sword.

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