In the 1940’s the insurance industry led the world into the era of institutional technology. Some of the cutting edge thinking employed in the movie “The Imitation Game” utilized to break the Nazi Enigma code was domesticated and sent into action, assisting insurance companies in the creation of mainframes. These mainframes really transformed the insurance industry as it became automated in exciting new ways. Unfortunately, the insurance industry has ceded (pardon the pun) its position as an innovator.
Every year, more and more runoff companies are becoming targets for mergers and acquisition. But often these mergers can be abrupt like jumping a truck onto the highway rather than smooth and orderly. Larger insurance companies with an appetite for runoff based M&A must be prepared to deal with a lot of legacy systems.