It's the second time around for Aon’s acquisition of WTW, but the $30bn merger everyone is talking about has sailed into a COVID-19 induced storm of market volatility, not to mention heavy scrutiny from the regulators. With so much external pressure, what is the forecast for the deal, and will it even go ahead? Intelligent Insurer investigates.
An influential insurance body has warned American legislators not to impose retroactive insurance payments as it could destabilise the insurance sector, dubbed ‘one of the nation’s essential services’.
Reinsurer ‘put in place hedges’ as the pandemic began to unfold, to ‘partially mitigate the economic impacts’.
The shifting economic landscape is creating an air of uncertainty and many M&A deals are being put on hold. But, dealmakers also see opportunities in an economic downturn.
The ripple effect of COVID-19 has now spread deep into global financial markets and falling interest rates are putting increasing pressure on insurers earnings and capital.
Renewable energy projects are facing a direct impact from COVID-19 through decreased working patterns and business interruption. And the sector could also face rate hikes from their insurers and potential gaps in coverage depending on policy wordings.
Mounting pressure on governments and insurers to adopt more sustainable models is driving investment in renewables. But climate change coupled with an adjusting insurance market is making renewables projects more expensive to insure.
When looking to tap foreign markets, many re/insurers are faced with significant barriers to entry such as forced data localisation and caps on foreign investment. The American Property Casualty Insurance Association (APCIA) seeks to leverage the US trade agenda to mitigate these barriers, spotlighting Africa as a land of opportunity.
In the shipping industry, a cyber incident has the potential to reroute vessels and disrupt supply chains critical for world trade. But, there are hidden protection gaps associated with cyber risk which could be targeted by sophisticated hackers.
As the re/insurance world digests the implications of the merger between Aon and Willis Towers Watson, Intelligent Insurer examines the implications of the deal for the market and asks experts what the potential cost synergies might look like.