Home » FOCUS » Mergers expected to shape insurance industry in future
North Miss. companies hope that bigger means better

Mergers expected to shape insurance industry in future

CORINTH — Taken a look at the insurance industry lately? It’s not your father’s insurance agency anymore. It’s not even your insurance agency anymore. And the industry we know today will almost certainly have a new face tomorrow.

“As the new millennium approaches, the insurance industry is in the initial stages of a major restructuring,” said Ernst & Young on its Web site. “The conditions driving change throughout the industry include rising levels of excess capital, stubbornly low return levels of new life premiums, and thin spreads resulting from the current low interest rates.

“The changing competitive landscape is reflected in two major trends: consolidation and convergence. An unprecedented level of merger and acquisition activity is rapidly reducing the number of players in the financial services industry resulting in the formation of mega-companies with global reach.”

BEFORE YOU GO…

… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.

If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.

Click for more info

About Wally Northway

Leave a Reply

Your email address will not be published. Required fields are marked *

*