OREANDA-NEWS. RnR Market Research Offers Report by Research on United States Insurance Report Q3 2016

BMI View: Already the largest insurance market globally, the US insurance industry is expected to record steady growth over the medium term, particularly in the larger non-life market. Rising household income rates and positive private consumption trends will support demand for a range of non-life and life products and we expect density rates (premiums per capita) to improve throughout the forecast period between 2016 and 2020. Strongest growth will likely be seen in the health insurance segment, where demand remains high as a significant proportion of the population continues to lack cover due to affordability issues. Steady growth in premiums and the fragmented nature of the market mean that the US is a popular destination for investors and we expect to see a variety of mergers and acquisitions progress in the coming years.

Key Updates And Forecasts

- While the US market has seen a number of high profile mergers in recent months, some major deals have stalled. In late May 2016, Chinese firm Anbang Insurance Group reportedly withdrew its application for regulatory approval by the New York State Department of Financial Services for the proposed USD1.57bn merger with Fidelity & Guaranty Life, though it does plan to re-submit the application shortly.

- One of the most high-profile mergers which is underway is that of health insurance provider Cigma with Anthem. This merger has recently come under criticism from the California Insurance Commissioner, Dave Jones, who has recommended the deal be blocked due to competition concerns.