“Last week we learned that Prudential is considering a bid for the insurance operations of Thailand’s Thanachart Bank. Prudential joins Axa of France and QBE of Australia who last month agreed to buy HSBC’s general insurance businesses in Asia and Latin America, in what is becoming a growing trend.
More efficient and cost-effective integration IT systems make acquisitions a viable and attractive option for insurers looking to increase their business in emerging nations. Entering new markets relies on a reorganisation and adaptation of the business to a certain degree, which has considerable IT implications. If managed effectively, IT can be a leading vehicle for growth in acquisitions, opening up new and exciting opportunities for global insurers.
Having a flexible IT system in place is also key for success post-acquisition. Dynamic technologies allow insurance firms to continue to develop and grow in new markets in harmony with their existing operations. With the global insurance industry becoming increasingly integrated, having a suitable system will be a major advantage when, for instance, ensuring compliance with various international regulations.
Furthermore, trading locations, such as Hong Kong, Shanghai and Singapore, have been much more receptive and quicker to adapt to using new technologies to advance their market position. Tapping into these markets allows insurance firms to reap the benefits of these technological advances and therefore, occupy a stronger position on the global stage.”
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