At the outset of the coronavirus pandemic last year, some insurance industry analysts predicted that the crisis and its economic ramifications would slow mergers and acquisitions in the P/C market as carriers shifted their focus toward ensuring business continuity.

But a faster-than-expected economic rebound and carriers’ growing realization that the new normal demanded an acceleration of digital innovation—which often requires a level of investment and growth that M&As are uniquely suited to help achieve—have defied those predictions.