Insurance M&A activity declined in volume in the past six months, due in part to the investor attitudes surrounding AI, according to PwC's
There were 191 disclosed transactions that valued almost $30 billion in the insurance sector from December 1, 2025 to May 31, 2026, according to PwC. In the prior six-month period, ending November 30, 2025, there were 207 disclosed transactions that valued nearly $32 billion.
Though overall activity and value has dropped slightly, PwC analysts say that strategic and financial deal drivers remain healthy. Premium rate increases, loss cost inflation and improved underwriting is driving stronger profitability across insurance lines, and the sector continues to attract investor interest.
The rise in AI implementation creates some uncertainty for investors, however. The report notes that private and public markets debate whether AI may empower new entrants in the insurance sector and undercut commissions, or enable brokerage services at lower costs — by improving operational efficiency and accuracy — and enhance margins.
According to PwC, there are also many insurance and reinsurance businesses that are actively
"After several active deals years, 2026 has seen uncertainty over how AI may disrupt the sector, resulting in greater deals scrutiny and declines in publicly traded broker valuations," said Mark Friedman, insurance deals leader at PwC and co-author of the report.
