The insurance industry landscape emerging from the global financial crisis will have a new balance of power, according to a new international report by professional services giant PricewaterhouseCoopers.

Key developments will include a significant shake-up in the list of leading players as insurers withdraw from markets and scale back particular lines of business, opening up market shares and opportunities for those remaining.

Acquisition activity is set to take off once valuation parameters are stabilised and funding is more readily available, while reinsurers face challenges.

The report says demand for reinsurance “is likely to increase within emerging markets, but is unlikely to offset the decline in reinsurance buying in developed markets and may force many reinsurers to rethink how they will sustain profitability and growth”.

Also among the big issues are increased supervision and regulation being more subject to national priorities, and the stability of tax regimes as a key consideration in where to base a business.

The report anticipates that the lack of international consensus on accounting and disclosure will make it increasing difficult for insurers to compete for capital.