Expected consolidation of underwriters failed to materialise

The following article appeared in the Going Public magazine published for the 6th M&A Insurance Summer Forum on September 1st, 2025.

Going Public: Has the expected consolidation among underwriters occurred?

Niki: W&I insurance has established itself in the M&A business. While the UK is considered a large, established market, Germany is growing rapidly. Despite difficult market conditions with falling prices and strong competition, the expected consolidation among underwriters has not materialized. Instead, new market participants are entering the market, often former employees of large insurers.

Going Public: Is this the only reason for the price pressure?

Niki: The price pressure results from the growing number of underwriters, more complex M&A transactions, and global economic uncertainties. In Germany, regulatory peculiarities and the heterogeneous structure of medium-sized companies further complicate pricing. Consolidation, as is common in other insurance segments, has so far been absent. Digitalisation, alternative capital sources, and specialisations are enabling new providers to operate successfully. These bring more competition, which leads to further price reductions in the short term but increases market quality in the long term.

Going Public: What's next?

Niki: The market is at a turning point. External shocks could trigger consolidation, but innovations strengthen growth and differentiation. For established providers, technological advancements and customer proximity are crucial to remaining competitive.

The Going Public M&A Insurance Special magazine can be read and downloaded from here.