The future of the insurance brokerage business is bright. (iStock)
Over the past few years, there has been significant growth in insurance brokerage M&A activity. 2019 set a record for the total number of transactions in the industry. And while 2020 may see M&A drop by a small margin because of COVID-19, experts are predicting a spike in mergers once again in 2021.
The top acquirers have remained the same over the past few years: Acrisure, HUB and AssuredPartners, all owned by private equity (PE) firms. As PE firms roll-up independent brokers, consolidation continues to be detrimental to both carriers and customers for a number of reasons, including power shifting into brokers' hands and fewer choices for customers. At the same time, consolidation could lead to a resurgence of new, nimble, and forward-thinking independent brokers who fully embrace transparency and objectivity as they deliver the services that clients want and need.
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