Broker deals set stage for faster 2025 insurance M&A

Strategic buyers and private equity investors are likely to remain active.

Mergers and acquisitions (M&A) activity in the global insurance industry is expected to accelerate after several major broker deals closed or were announced at the end of 2024, according to Norton Rose Fulbright’s report.

Strategic buyers and private equity investors are likely to remain active, although high valuations may temper some activity. 

The report also points to potential large carrier transactions in 2025 as companies look to lock in the gains from the recent hard market before conditions soften. 

Overall, the 2025 outlook points to a year where insurers will need to balance new disclosure obligations, increased AI oversight and heightened geopolitical uncertainty, whilst positioning themselves for renewed deal activity and market realignment. 

The global insurance industry enters 2025 with a full slate of regulatory, technological and geopolitical challenges that are expected to shape business decisions throughout the year, according to Insurance Foresight 2025. 

One of the defining themes for 2025 is the shift toward mandatory climate reporting. Major markets including the UK, EU, US and Australia are moving to more prescriptive disclosure regimes, many of which are aligned to the International Sustainability Standards Board (ISSB). 

The UK government plans to consult on adopting ISSB standards early this year, with the potential for listed companies to begin reporting against them from 2027. 

Australia’s new sustainability reporting rules took effect on January 1, 2025 for large companies, requiring disclosure of Scope 1, 2 and 3 emissions and climate-scenario analysis. 

AI regulation is set to tighten further in 2025. The EU AI Act begins to apply from February, banning certain AI uses and imposing heavy penalties for non-compliance. 

Broader obligations for high-risk systems (including those used in life and health underwriting) take effect from 2026. The UK is expected to begin consulting on its own AI legislation this year, focusing on large model developers whilst regulators continue to apply cross-sector principles. 

Across Asia, markets such as Singapore and Hong Kong are expanding their governance frameworks for generative AI, whilst Canada, Australia and Middle Eastern jurisdictions progress their own regulatory plans. 

Geopolitical risk remains another major factor for insurers’ 2025 outlook. The report highlights increasing fragmentation in legal and regulatory systems, making cross-border compliance and dispute resolution more difficult. 

The aftermath of the 2024 US election is expected to shift the regulatory tone on ESG and fossil-fuel underwriting at the federal level, although state-level rules will continue to create inconsistencies. 

Persistent conflicts in Europe, the Middle East and parts of Africa may challenge reinsurer participation, increase costs for certain lines and strain supply chains.