Market Update: Insurance Services & Technology Q1 2023
Global M&A activity in the Insurance Services and Technology ecosystem started in 2023 on a slight decrease compared with the previous year. The first quarter of the year ended with a 20% decrease in the number of transactions quarter-over-quarter. Due to macroeconomic uncertainties, there was also an apparent decline in total transaction value, totaling one of the lowest total transaction values in the last few years. Despite these numbers, the sector demonstrates that investors are still comfortable investing in quality and differentiated assets. It will be keen to understand how the public market and economic performance will impact both financial and strategic buyer appetite going forward for the rest of the year.
As for the Insurance Services and Technology landscape, large carriers and brokers alike likely will continue to look towards inorganic growth opportunities as a way to enhance the way in which they engage their customers and the channels that are used to do so as Insurance continues its slow but sure adoption of technological services, solutions, and products.
7MA has completed and is constantly working on numerous M&A transactions with companies that operate in the Insurance and Insurtech industry. Our team has developed unparalleled deal expertise and knowledge of the industry trends, valuation trends, and the most active strategic and financial buyers. Please contact Leroy Davis or Nicholas Prendergast you would like to learn more about 7MA’s Insurance Technology and Services practice.