A new report has highlighted how UK insurers are increasingly prioritising investments in post-merger integration and data migration, as M&A activity in the sector pushes such issues higher up transformation roadmaps.
According to the Sollers Prediction Report 2026, insurers are increasingly targeting their investments at system migration, automation, IT estate rationalisation and artificial intelligence. These focus areas aim to modernise core platforms, simplify technology stacks and remove process bottlenecks that can lead to delivery delays.
Post-acquisition, transferring and aligning data across distinct, sometimes incompatible systems can pose a major challenge. Inaccurate or delayed data migration post-transaction has been linked to operational issues, service disruption, regulatory scrutiny and difficulties in delivering value.
MichaÅ LitwiÅski, UK GI lead at Sollers, stated that: “Rapid data migration after M&A is possible when insurers combine deep mutual institutional knowledge with strong cross-team collaboration.”
According to Sollers, stronger data integration, AI-enabled underwriting processes and modern rating platforms are among the key areas being prioritised by insurers. Prominent modernisation priorities including the adoption of Blueprint Two-compatible core solutions, consolidation of policy administration systems and the integration of flexible pricing platforms with underwriting systems.
Wojciech Korobacz, UK London Market Lead at Sollers Consulting, wrote in the report: “Replacing fragmented workflows with unified platforms has shown that success hinges on deep migration experience. Cross-functional collaboration, and the ability to manage the entire submission lifecycle in one place will become focus topics.”
Looking towards dealmaking trends in 2026, Sollers say they expect consolidation in the sector to continue, but warn that pricing decisions may be complicated by rate stagnation or downward movements in commercial and reinsurance lines.
Elsewhere, Sollers predicts that insurance markets in 2026 will be defined by a drive to improve efficiency and achieve economies of scale, trends that could prove beneficial to ongoing dealmaking across the sector.
Sollers also forecast that 2026 could be decisive for the adoption of cloud technology in the industry, with AI solutions driving insurers towards implementing cloud-based solutions.
According to Sollers, IT innovations and the need to achieve operational flexibility are helping cloud-based systems to become widespread in the sector, but issues remain around how operators are able to fully unlock the value these systems can deliver.
Michal Trochimczuk, President of Sollers Consulting, says: “The adoption of the cloud is progressing at different speeds. Markets such as Australia, New Zealand and the UK are developing rapidly, while Japan and continental Europe remain more cautious. Cloud infrastructure offers flexibility and security, but many insurers are still learning how to fully exploit its economic potential.”
As the adoption of cloud technologies continues in the UK insurance sector, companies with strong cloud integration could quickly become targets for larger counterparts seeking to tap into new technologies more effectively.
For companies operating scaled-up acquisition strategies, post-merger integration should be prioritised over the volume and scale of transactions
Discover how M&A trends are shifting in the UK insurance sector
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