Insurance Brokerages Shifted Focus to Integration
Brokerages are deprioritizing acquisitions to prioritize organic growth as interest rates climb.
Updated on Oct. 5, 2026 in Remote Work
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Major insurance brokerages have shifted from a 15-year strategy of aggressive acquisition toward internal business integration. This pivot comes as rising interest rates and softening commercial insurance pricing force firms to emphasize organic growth to maintain valuations.
Why it matters
Higher interest rates have raised the cost of capital, making the integration of past acquisitions essential for efficiency. As organic growth rates decline across the sector, firms are reallocating capital to technology to manage smaller commercial books more effectively.
Trucordia has completed approximately 300 acquisitions to date, yet recently turned away 90 of its last 100 potential deals. Firms with $1 billion in revenue are now allocating 5%, or $50 million, toward technology investments to drive efficiency.
The players
Trucordia
A Lindon, Utah-based insurance brokerage that has scaled through a strategy of approximately 300 acquisitions.
Galway
An insurance services firm that last completed a recapitalization with Harvest Partners in late 2020.
McGill and Partners
A brokerage firm currently operating under a long-term business plan that relies on organic growth rather than acquisitions.
The details
Brokerages are leveraging centralized agency management systems, standardized branding, and streamlined insurer relationships to harmonize disparate units. This technological shift allows firms to handle smaller commercial books at higher volumes. Meanwhile, some firms like McGill and Partners have implemented business plans that assume no future acquisitions to insulate against market volatility.
Timeline
Over the past 15 years, brokerages grew aggressively through acquisitions.
Galway last recapitalized at the end of 2020.
Industry trends were discussed the week of October 5, 2026.
Galway will likely consider its market position within the next 24 months.
Market Landscape
This shift marks a departure from the 15-year era of private-equity-backed brokerage consolidation that defined sector growth. Firms are now prioritizing operational efficiency to combat the cooling organic growth rates observed across the industry.
Independent brokers should prepare for increased technology spending requirements as the market demands greater operational efficiency. Owners should monitor the valuation multiples of their peers to determine if organic growth or consolidation is the better path forward in this interest-rate environment.
The takeaway
The brokerage industry is pivoting from buying growth to building it internally. Monitor your firm's tech-spend-to-revenue ratio, currently averaging 5%, to ensure you remain competitive against larger, centralized rivals.
Further reading
Learn more about organizational shifts in the Remote Work section.
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