Insurance Brokerages Shifted From Acquisitions to Integration

Higher interest rates have prompted insurance firms to focus on organic growth rather than rapid, deal-heavy expansion.

Updated on Oct. 5, 2026 in Remote Work

Isometric editorial illustration of interlocking geometric steel beams and structural supports, representing operational efficiency in the insurance sector. — Insurance brokerages are pivoting from aggressive deal-making to internal operational integration as rising interest rates limit rapid expansion opportunities. AI Illustration. Upload story photo >

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Insurance brokerages have moved away from an aggressive acquisition strategy that defined the past 15 years. Faced with softening market conditions and rising interest rates, firms are now prioritizing the integration of existing businesses and focusing on organic growth.

Why it matters

As brokerage platform valuation multiples stabilize, firms must demonstrate sustainable organic growth to remain competitive. Rising capital and technology requirements are forcing a shift toward efficiency and internal business optimization.

Trucordia has completed approximately 300 acquisitions but recently rejected 90 of its last 100 potential deals. Firms with $1 billion in revenue are now allocating approximately $50 million, or 5% of revenue, toward necessary technology investments.

The players

Trucordia

Headquartered in Lindon, Utah, this company is a major brokerage that has integrated 300 acquisitions.

McGill and Partners

This firm is a notable brokerage that has developed a business plan excluding further acquisitions.

Galway

This financial services firm last completed a recapitalization in 2020 and is currently evaluating future market options.

The details

Brokerages are centralizing agency management systems and insurer relationships to improve efficiency, particularly in handling small-commercial books. While some firms continue to eye expansion, others like McGill and Partners have adopted plans that currently assume zero acquisitions.

Over the past 15 years, brokerages relied on aggressive acquisition strategies.
At the end of 2020, Galway last completed a recapitalization with Harvest Partners.
During the week of October 5, 2026, industry executives discussed these trends in Colorado Springs.
Within the next 24 months, Galway is expected to consider new market position options.

Market Landscape

This move signals a pivot away from the private-equity-backed brokerage consolidation cycle that has dominated the industry for the last 15 years. Firms are repositioning themselves to favor operational efficiency over the rapid deal-making strategies of the past.

Clients may see firms consolidate service platforms, potentially streamlining the management of their insurance portfolios. However, smaller independent brokers may struggle to keep pace with the high technology spending required to remain competitive.

The takeaway

Businesses in the brokerage sector are prioritizing stability and technology infrastructure over constant expansion to navigate current economic headwinds. Leaders in professional services should focus on maximizing existing assets rather than relying on external growth to inflate value.