Novidea, the data-driven management platform for the insurance industry, has launched a new report to help insurance executives maximise success following a merger or acquisition.
The report follows yet another huge bumper year for M&A activity in the insurance industry, as this model becomes an increasingly common path to business growth. In the UK in 2017 alone, the value of M&A deals totalled £22 billion, according to Deloitte.
The report highlights some of the biggest decisions that need to be made in the wake of M&A activity, from who to hire from both businesses and which parts of the business to focus resources on, to the company’s objectives for the next year and which business lines to focus on – all of which can have a significant impact on the business.
Whilst brokers understand the importance of getting the deal done, post-merger or acquisition is often where the hard work begins as they get to grips with their newly integrated business.Along with any deal comes huge pressure for the executive leadership to capitalise on it and ensure they deliver the expected ROI, as soon as possible. However, KPMG studies show that 83% of all mergers and acquisitions don’t actually increase profits. As such, Novidea’s report aims to highlight the steps that are needed to ensure that businesses make their integration as successful and profitable as possible.
The company’s comprehensive guide highlights the main concerns and challenges that businesses face when it comes to M&A success and outlines its recommendations to help brokers and agents hit the ground running post M&A, including:
- Technology – how to ensure the businesses can merge seamlessly in order to improve efficiency, tackle legacy systems issues, benefit from standardised processes and eliminate data silos.
- Leadership – tips on how the board can make sure they stay on the front foot when it comes to managing the M&A process, setting objectives, achieving synergies and keeping the customer at the centre of the company’s strategy.
- Cross and up-sell opportunities – how to deliver increased profit from the newly combined business – for example, by taking advantage of cross and up-sell opportunities that naturally arise as part of M&A.
Ben Potts, UK Managing Director, comments:
“Many brokers and insurers have M&A activity sitting high on their list of objectives, yet post-deal completion, they often realise that they have much further to go on the road to success. Following an M&A deal, we frequently hear about how firms struggle to get a handle on their newly combined business, to integrate and capitalise on revenue potential, and to ensure the business maintains a healthy growth trajectory.
At Novidea we have looked at how we can harness the power of technology to help overcome these problems, get a 360-degree view of the business, and improve decision making and profitability from the outset. Ultimately, this approach will ensure that the business meets its objectives and can make the integration a success.”