M&A transactions remain one of the most powerful levers for insurers seeking growth, diversification and operational scale.
Executive Summary
M&A deals are frequently driven by distribution strategies, growth targets or financial considerations, while the technology implications are often examined only after closing.That's one of the insights that Xceedance SVP Praveen Pachaury shares as he explains why technology integration is one of the most challenging aspects of insurance mergers and acquisitions. Here, he also highlights common pitfalls such as incompatible core systems, fragmented data and cultural resistance, which often derail post-merger success, and offers seven proactive strategies—ranging from early technology involvement and regulatory review to process harmonization and change management—to ensure smoother integration and maximize deal value.
While the number of transactions has declined in the last year, deal value continues to climb. In the first six months of 2025, the global insurance sector recorded 209 disclosed deals totaling $30 billion, compared with 297 deals worth $20 billion during the prior six-month period, according to PwC. Fewer but more transformative deals is a trend that’s expected to continue into 2026.
(Editor’s Note: PwC gave an updated report for the second half of 2025 recently, counting 207 more insurance deals with an aggregate value of $31.8 billion. See related article, “Insurance Industry ‘Megadeals’ Dominate 2025, Says PwC“)
The strategic rationale for acquisitions may include enabling insurers to compete with large tech-enabled rivals and helping to absorb rising underwriting and claims costs. The operational reality, however, is often more complex. Deals often close with impressive headlines, and then the hardest work begins. Integrating technology platforms, data environments and operating models remains one of the biggest obstacles to unlocking deal value.
