How Agency Owners Are Thinking About the Future

Sponsored by: Gallagher
May 29, 2026

There are almost 39,000[i] independent property and casualty insurance agencies in the United States, and roughly 750-800 [ii]are changing hands every year. This pace reflects a “new normal” of ongoing consolidation across the industry.

Consolidation among U.S. insurance brokers has been building for more than a decade. 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 750–800 a year.

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.

What’s Shifting for Independent Agencies?

Independent insurance agencies are facing meaningful changes. Service expectations are rising as technology and artificial intelligence are becoming part of people’s daily lives, according to Big “I” 2024 Agency Universe Study Management Summary.

Insurance clients demand faster and simpler interactions, especially for everyday needs. Operating under these conditions, agencies now require more investment than they did 10 or even five years ago.

As Jen Tadin, president of small business and personal insurance, U.S. Retail at Gallagher, puts it: “Over the last decade, independent agencies have realized they can’t just go it alone anymore. Access to people, technology and resources is now critical for business operations.”

Why Reassess Current Operations?

The operating environment for independent agencies has become more complex because the requirements for competing have changed.

Carriers are asking for higher volume thresholds and tighter alignment. At the same time, technology has moved from a differentiator to a baseline expectation. Digital experience, self‑service capabilities, data integration and artificial intelligence (AI) tools are quickly becoming table stakes, particularly in personal lines and small commercial business.

For many independent agencies, keeping pace requires high levels of investment, both financial and operational, that were not necessary even a decade ago.

“As an independent owner, you feel in control until a carrier pulls back, an employee leaves or the market changes faster than you can adjust,” said David Bauer, vice president of mergers and acquisitions at Gallagher and a former agency owner. “That’s when control starts to feel fragile.”

In this environment, decisions to consolidate are often less about retirement or exit timing and more about access to evolving technology, stable carrier relationships, specialty coverages and resources that support long‑term competitiveness.

Independent insurance agency owners assessing their options today are responding to structural changes in the market, not reacting to short‑term disruption.

What Does Timing Mean for the Long‑Term Value of an Independent Agency?

It’s natural for independent insurance agency owners to assume that holding on a little longer will always lead to a better outcome. Today, however, timing plays a more nuanced role and, in some cases, waiting can quietly work against long‑term value.

As more agencies come to market, buyers have greater choice. According to Tadin, this is already showing up in pricing: “Valuations across the market have started to diminish, particularly for books heavy in personal insurance and small commercial lines.”

This shift isn’t about panic or trying to predict the perfect moment to sell. As Bauer has noted, the forces that influence agency value don’t pause just because an agency owner waits. Client behavior continues to evolve and technology — including automation and artificial intelligence — is reshaping how insurance is sold and serviced.

Tadin underscores the point: “There is urgency here, not because of fear, but because the forces affecting valuation are already at work. Waiting doesn’t pause them.” Over time, those forces can make future transitions more complex or less favorable.

To understand what an evaluation and valuation could look like for your agency, get the Book Purchase Agency Evaluation Guide here.

Where Clients Are Placed After a Sale

Where clients land after a sale matters just as much as price and it depends heavily on who is buying and why.

Some buyers focus on short‑term growth. Others, particularly private‑equity‑backed firms, may plan to roll agencies up quickly and sell again in a few years. As Bauer points out: “That approach can mean multiple ownership changes, along with repeated system shifts and service disruptions in a relatively short period of time.”

Large, long‑term brokers take a different approach. Deals can be structured around the seller’s goals. Even in asset purchases, there is often flexibility to keep client relationships intact while changes happen gradually behind the scenes.

For clients, that stability makes a real difference. For employees, it can mean joining a larger organization that invests in technology, training and career paths rather than uncertainty about what the next transaction might bring.

That’s why many independent agencies want partners with a people‑first culture. In that sense, the right buyer becomes a “forever home” for clients and for employees, too. “Clients deserve to land somewhere stable, an organization that plans to be there for the long haul, not one preparing for a quick exit,” advises Bauer.

To see what a book purchase could look like for your agency – from the first conversation to full client integration – get the Book Purchase Transition Roadmap here.

How Does Consolidation Reshape Employees’ Careers?

When larger brokers purchase books, fully or partially, they often have the flexibility to bring staff along to maintain service continuity. Such brokers understand that relationships are invaluable in client service, and having the right people in their team can only improve the newly acquired clients’ future experience.

That is certainly the case when Gallagher makes acquisitions. “We take those employees in,” says Tadin. “Owners don’t want someone to lose their job because they chose to retire or slow down. For employees, it often opens doors they never had before.”

Instead of a ceiling, there is a path: training, growth and long‑term stability inside a larger organization—one that plans to be around for decades.

The Right Deal Can Protect a Legacy

For independent agency owners, selling books or assets is a strategic decision rooted in care for their clients and their staff, and it should never be a one-and-done move. It’s best treated as a gradual transition, based on careful decisions on the owner’s timeline.

“This isn’t about losing your identity. It’s about protecting the work you’ve done while the market still values it,” notes Bauer.

For most owners, the most important thing will be to avoid selling under pressure. It is worth taking the time to identify partners who see what has been built as a legacy worth carrying forward, not as a one-time financial deal.

A decision to sell does not have to erase the story that a business has written. Done right, it protects and honors it.

Get the full Book Purchase 2026 Agency Market Brief here.

To see what your future could look like with Gallagher, visit our website to get the full Book Purchase Agency Transition Toolkit or click here to schedule a confidential, exploratory conversation with us.

[i] “An Exploration and Analysis of the Independent Agency System,” Big i, 30 Mar 2026.https://trustedchoice.independentagent.com/resources/agency-universe-study-presentation-2024/

[ii] “An Exploration and Analysis of the Independent Agency System,” Big i, 30 Mar 2026.https://trustedchoice.independentagent.com/resources/agency-universe-study-presentation-2024/