The insurance agency consolidation trend among US insurance brokers has been building for more than a decade as agencies evaluate acquisitions and partnership opportunities.
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There are almost 39,0001 independent P&C insurance agencies in the US. Deal activity climbed through the 2010s and peaked in 2021, when more than 1,000 agencies were bought or merged. Since then, the number of deals has dipped but remained strong, settling at around 750-8002 a year. This pace reflects a "new normal" of ongoing consolidation across the industry.

So, one thing is clear: the consolidation trend is not going anywhere. It's not only driven by market conditions and interest rates. There are structural factors too, like the need for investment in ever-more-expensive tech.

For independent insurance agency owners, these things are worth bearing in mind as they consider what the next chapter should look like for themselves, their clients and the people who work alongside them. In this Agency Market Brief, we did a deep dive on what's driving consolidation for independent agencies. You'll read about:

  • How rising service expectations and technology investments are reshaping independent insurance agency operations.
  • Financial and operational investments in a competitive market.
  • Valuations for books heavy in personal insurance and small commercial lines.
  • Where clients and employees land after a sale depending on who is buying and why.

Access the brief to see what's driving it — and why more independent agency owners are quietly reassessing valuation, succession, and future partnership options.

ACCESS THE BRIEF


Disclaimer

The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only. This publication is not intended to offer financial, tax, legal or client-specific insurance or risk management advice. General insurance descriptions contained herein do not include complete Insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysis.

Insurance brokerage and related services provided by Arthur J. Gallagher Risk Management Services, LLC License Nos. IL 100292093 / CA 0D69293.