By: Luke Jones, Published on June 25, 2018 09:38 PM, Last Update on June 25, 2018 06:44 PM
It is widely expected that global insurance companies will seek consolidation through mergers and acquisitions (M&As), and Canada is no different. Indeed, executives at a recent conference believe more insurance companies will pursue consolidation and the amount of companies in the market will decrease.
Adam Mitchell, principal of Ontario’s Mitchell & Whale Insurance Brokers Ltd. Believes the current insurance industry is like a “giant poker tournament with thousands of tables.” Mitchell says the insurance marker won’t be as fragmented as it currently is. He was speaking at the Property and Casualty Underwriters Club (PCUC) luncheon held June 13 in Toronto.
Referencing the poker analogy again, Mitchell cautioned there will be only “a few tables left”. Intact Insurance is the largest P&C provider in Canada and was represented at the luncheon by Lou Gagnon, president of Canadian operations. He says disruption in the insurance industry is likely, pointing to how Uber caused problems for the traditional taxi industry.
“It’s known that distribution in financial services is definitely a place where there is good profit being made,” Gagnon said. “So if you make profit, there is a chance that you are going to be disrupted.”
Recent acquisitions in the Canadian market include: