Changes are happening amongst some of the biggest players in the insurance industry. A recent “deal boom” has resulted in many companies combining forces, providing insurers with particular marketplace advantages such as reduced competition, improved negotiation with both healthcare providers and customers, and the ability to cut costs and add new services. As these mergers are being arranged, insurance regulators are keeping a close watch to check monopolies and prevent against too little competition. Learn more about four pending mergers that may reshape the insurance industry.

ACE purchased Chubb

According to Dealogic, the deal between ACE and Chubb is one of the biggest recorded deals among life and property-casualty insurers. According to multiple sources, Insurer ACE Ltd. will purchase Chubb Corporation for $28.3 billion in cash and stocks. Currently both companies provide midsize businesses with insurance, while Chubb is known for providing homeowner insurance for wealthy Americans and ACE similarly services well-to-do clients in the personal insurance sector.

Aetna purchased Humana

Third and fourth top revenue health insurers Aetna and Humana, have announced their intent to merge. According to sources, Aetna will purchase Humana for $37 billion. Although Aetna’s executive vice president and CFO believes that the merger will allow the company to drive out unnecessary costs and to provide more affordable products, economists are suspicious that the merger between the two large companies will result in price spikes rather than reductions.

Anthem purchased Cigna

Second largest health insurance provider, Anthem, aims to purchase fifth largest health insurer, Cigna, for $48 billion as soon as the second half of 2016. Anthem and Cigna heads expressed confidence that their deal will pass inspection with regulators and suggested the merger will improve affordability and provide additional products and services.

Centene purchased Health Net

In early July, Medicaid insurer Centene purchased Health Net in a deal worth $6.8 billion. The merger will better position Centene, which is one of the largest Medicaid managed-care companies in the U.S (but not California), in California’s profitable Medicaid market. The deal will give Centene the largest market share among private administrators of Medicaid.

As these mergers dramatically change the insurance industry, both smaller providers and customers will be watching to see how these tie-ups affect current services and premiums.

Contact Shorepoint Insurance Services for a review of your current coverages and how these changes will affect you.