Two Truths and a Lie About the Insurance Agency M&A Environment
Given the massive number of M&A transactions in the IA system over the past decade, it has created an abundance of misinformation about the M&A environment for independent agency owners. In an effort to clear up some of the misconceptions, we are going to engage in a game of two truths and a lie. Truth […]
How Publicly Traded Brokers’ Values Impact Retail Agencies’ Values
Most independent agency owners don’t wake up thinking about Arthur J. Gallagher’s balance sheet or the private equity cost of capital. You’re thinking about renewals, staffing, carrier relationships, and whether the market will soften or harden. But here’s the truth: the valuations making headlines in the insurance brokerage world are quietly shaping what your agency […]
You Only Have One Opportunity to Sell Your Agency. Is DIY the Best Idea?
Insurance agents advise their clients every day on risk, protection, and long-term financial outcomes. Yet, when it comes time to sell their own agency, often the most valuable financial asset they will ever own, many owners choose a do-it-yourself (DIY) approach. That decision is not just inconsistent with the advice agents give their clients; it […]
Is the M&A Environment Good or Bad for Your Agency?
The IA system has been in a period of prolonged consolidation for the past 30 years without any signs of a real slowdown. According to the Agency Universe Study, the number of independent insurance agencies has declined by 12% since 1996, and barring a 10% increase in 2022 (a temporary COVID bump), the IA system […]
Four Insurance Agency Valuations Trends to Watch in 2026
As we step into 2026, independent insurance agencies face a valuation landscape shaped by a softening insurance market, prolonged economic uncertainty, continuing agency consolidation, shifting ownership dynamics, and rapidly evolving technology. For agency owners contemplating perpetuation, a sale, or simply benchmarking their business value, understanding the following trends is critical for 2026 business planning. 1. […]
No Business Plan & No Growth
Now Is the Time to Sell Your Insurance Agency If you own an independent insurance agency and have not grown in revenue in the last two years, and you do not have a business plan to change course, it’s time to sell your agency. I do not write these words lightly, but if you continue […]
Help! Our Agency Owner Passed Away Unexpectedly. How Will it Affect the Agency’s Value?
In almost every scenario, the unexpected passing of an agency owner will have a profoundly negative impact on the value of an agency. With 39,000 independent insurance agencies in the US, sadly, unexpected deaths of agency principals are an everyday occurrence. Particularly when you factor in that 22% of agency owners are over the age […]
The Independent Agency System Report Card – 2025 Evaluation
Do you remember when you were a kid and you’d get your report card? It created such buzz and anticipation with your classmates. The nervous energy was palpable as you prepped for opening the report card and thinking of how you were going to explain your school’s progress report to your parents. In this article, […]
Six Key Factors That Impact Insurance Agency Valuations
In the dynamic landscape of independent insurance agencies, understanding the many risk factors that influence agency valuation is crucial. These factors can significantly impact the value of an agency, whether it is being evaluated for internal perpetuation, external sale, or business planning purposes. In this article, we discuss six key factors that impact the valuation […]
The Quiet Reason Many Agents are Selling Their Agencies
How Stress and Burnout are Contributing to Agency Sales There are many factors why an agency owner sells their agency, including: retirement age, financial gain, and the 3-Ds (Divorce, Disability, and Death). However, the undocumented but growing reason that we are hearing about is stress and burnout. In many industries, including insurance, the pandemic gave […]