98 The economic repercussions of COVID-19 are increasingly evident, posing challenges in comprehending its full extent. The ripple effects span across various industries, impacting insurance as well. Factors such as industrial production, healthcare indices, and employment rates play crucial roles in determining the likelihood of recovery and expansion within the insurance sector. In recent years, lower catastrophic risks, improvements in commercial and personal car markets, and enhanced underwriting discipline have contributed to rate hikes in the US property and casualty insurance industry. Despite these positive trends, an increase in net losses and loss adjustment expenses (LAE) outweighed the rise in net received premiums, resulting in a reduced underwriting benefit of USD 6.5 billion compared to the previous year’s USD 7 billion. Nonetheless, successful investment outcomes combined with underwriting benefits yielded a net profit of USD 34.8 billion for the sector. The United States has traditionally dominated insurtech investment; however, there’s a noticeable shift in investment centers. In Q3 2021, 46% of all insurance transactions occurred in the US, marking a 4%-point increase over the previous two years. Notable deals include Lemonade, a US renters and homeowners’ insurance startup, which received USD 300 million in funding, valuing the company at over USD 2 billion. Merger and acquisition (M&A) deals in the US insurance sector constituted approximately 53% of all deals in 2022, with their value doubling in 2021 compared to the previous year. The sector witnessed transactions worth USD 1.3 trillion in 2020, escalating to USD 2.6 trillion in 2021. This surge in M&A activities reflects a concerted effort by businesses to enhance efficiency through economies of scale and scope. The US life and non-life insurance market is characterized by fragmentation, with anticipated growth driven by increasing adoption of insurtech, ongoing merger and acquisition activities, and other contributing factors. Major players in the industry continue to navigate through these dynamics, positioning themselves for future growth and resilience amidst evolving market conditions. You Might Be Interested In Asia-Pacific Banks Witness Surge in Debt Issuance Driven by TLAC Demand in China FAA Delays Implementation of New Air Traffic Control Rest Requirements AECOM-Stantec Joint Venture Secures Environmental Planning Contract with U.S. Navy House Oversight Committee to Scrutinize Role of Pharmacy Benefit Managers (PBMs) in Rising Healthcare Costs Liberty Mutual Insurance Enhances Global Operations and Expands Focus in Asia Pacific Ping An Insurance Group Sees 22.8% Decline in 2023 Net Profit
