The P/C insurance sector's merger-and-acquisition activity is expected to remain the same as in the past three years because of continuing volatile financial markets and the overall economic environment, according to a Guy Carpenter report. A major catastrophe could add a strain to insurers' drained budgets and become the "tipping point from earnings event to capital event," leading to rate increases, the broker said, adding that price hardening "would likely change insurers' focus away from growth via acquisition and back to organic growth."

Related Summaries