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August 14 2015 | Deb Smallwood

Here we go again – the conjoinment of two more global technology firms that creates another global giant technology services provider in the financial services space.

All within the blink of an eye - FIS acquired SunGard.  

So my immediate response is – here we go again. And I ask the questions: Why so many? And what does this mean to us in insurance?

Why so many?                    

  • Power of Scale – the power of size allows companies to consolidate overhead with the merger of people, processes, infrastructure, and product offerings, allowing true scale for profitable growth.
  • Market Dominance – buying market share and client footprint across industries are certainly faster than organic growth, and allow for performance balancing across industries as the market swings and shifts.
  • Diversification of Offerings and Clients – the broadening of offerings, rather than deepening capabilities, allows for an expanded footprint in customers across many industries.

What does this mean to us in insurance?

  • Fills the Gap – conjoinment creates opportunities to bring together a suite of offerings that better align to the changing needs of insurers, as they continue to transform and innovate toward becoming the Next-Gen insurer.
  • Reflects Financial Strength – many M&As reflect the health and wealth of the financial services industry – especially in insurance. Insurance is a top target industry for many solution providers due to growing technology investments, expanding needs and demand, and solutions providing more offerings.
  • Presents Fewer Options – as we see more solution providers consolidate, there are fewer company options. But on the flip side – the solution providers will bring together how these technologies and services all fit together.

So don’t blink, there will be more to come as we see more consolidation – all with the goal to strengthen offerings, broaden footprints, position for growth, and ultimately seize the pot of gold in insurance.  

smallwood deb w

To learn more, please contact:
Deb Smallwood
Founder & CEO
Strategy Meets Action