The law firm says that technology will continue to be a key feature of deals in the coming year

Technology is the primary driver of M&A activity, according to Clyde and Co’s report ’Finding opportunity in adversity’, which was released yesterday (18 February).

The pandemic has accelerated the adoption of technology across the insurance industry, meaning that it has also had a role in underpinning deals of every size.

Clyde and Co’s corporate insurance partner Joyce Chan said: “Technology will continue to be a key feature of the growth agenda in the coming year as (re)insurers seek out insurtech providers that can deliver a competitive edge, be it through acquisition, investment or partnership.”

Insurers taking stakes in insurtech

The law firm’s report found that examples of insurers taking stakes in insurtech startups has increased across every geography. These include:

Chan added: “The fallout from Covid-19 has intensified the focus on innovation.

”When growing your business face-to-face is restricted, you have little choice but to fall back on technology to maintain existing relationships, but also to access new markets and grow your customer base.

“At the same time, in the face of balance sheet pressure, any innovation that can generate efficiencies and bring down the cost base is welcome.”