• The stock market is doing well overall, generating confidence.

• As the economy improves, there will be more demand for insurance products, helping to stimulate insurers' M&A interest.

• Regulatory changes in Europe and the U.S. could force some carriers to exit businesses considered unattractive due to increased capital requirements.

A sign the insurance industry is aiming to reinvigorate its acquisition activity, says Dave Simmons, director/insurance M&A leader for Deloitte, is that many companies that cut back on their acquisition departments during the financial crisis are now rebuilding them.

Deloitte says more companies are engaged in the preliminary stages of acquisition activity, developing playbooks and targeting candidates. However, many appear to be waiting for market disruption to trigger the next move.

Adds Simmons, “I'm expecting slow and steady increase in insurance M&A activity throughout 2013, but without an event that would accelerate that activity, I expect slow improvement.”

Of the four industry segments the report briefly reviews, it dubs insurance brokers “the industry bright spot.”  

P&C companies slowed down their M&A activity in no small part due to Superstorm Sandy. In 2013, some of these carriers may aim to improve earnings by acquiring specialty lines with better value, or reaching out to faster-growing markets outside of the U.S.