Insurance
Home›Insurance›Industry & Deals›Wholesale brokers face tighter discretion as retail ag…
Wholesale brokers face tighter discretion as retail agencies consolidate
The Big “I” and Future One estimated independent property-casualty agencies fell to 39,000 in 2024 from 40,000 in 2022, and many owners expect a change within five years.
Consolidation in the US retail property-casualty insurance agency market is pushing wholesale brokers to demonstrate value beyond providing market access, as acquisition-driven preferred-partner programs disrupt relationships that can span decades, Insurance Business reports.
The industry shift is affecting competitive positioning and day-to-day underwriting placement decisions, with acquired agencies sometimes keeping their name, offices, and producers, but losing discretion over where difficult placements are routed when parent companies standardize internal processes.
Insurance Business cites Big “I” and Future One estimates of about 39,000 independent property-casualty agencies in the United States in 2024, down from 40,000 in 2022. Its Agency Universe Study also found one in three agencies expect an ownership change within five years, and 57% listed finding new markets as their leading challenge.
Wholesale brokers interviewed by Insurance Business said history with producers may no longer guarantee outcomes, because acquired producers often must follow preferred-wholesaler strategies set by parent organizations. The article also points to OPTIS Partners data showing 695 North American agent-and-broker deals in 2025, down 12% from 787 in 2024, with private-equity-backed or hybrid buyers completing 73% of transactions, and notes major distribution deals including Brown & Brown’s planned $9.83 billion acquisition of Accession Risk Management and Gallagher’s agreement to buy AssuredPartners for $13.45 billion.