INSURANCE
The insurance sector is a key pillar of the Swiss financial industry. Despite roughly 200 registered insurance companies, market concentration remains very high—particularly in life insurance, where the five largest providers account for more than 80 percent of the market. The market is saturated and competition is intensifying. Traditional life insurance business, in particular, is contracting as a result of stringent solvency requirements and the ongoing shift toward semi-autonomous solutions in the group life segment. Increasing regulation poses a challenge for the entire industry, including insurance intermediaries, where consolidation continues to accelerate. InsurTechs, which have entered the market in recent years, are also affected and have so far gained only limited traction.
We currently observe the following M&A trends:
-
Greater emphasis on core business and profitability, including the divestment of stakes in InsurTechs and ecosystem ventures
-
Expansion of third-party asset management or other fee-based business models, such as outsourcing and advisory services
-
Selective investments in InsurTechs and other FinTechs to strengthen digital capabilities and expand into niche segments
-
Portfolio reviews and clean-ups by market participants, including reinsurance solutions and (partial) portfolio sales to reduce capital intensity and improve operational efficiency
-
Ongoing consolidation among insurance intermediaries, driven in particular by international brokerage firms backed by private equity
-
Increasing—but still gradual—market consolidation in the health insurance sector