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Insurance brokerage buyers focus on AI and tech readiness in M&A
Industry data show large brokerages are far more likely to invest in AI, with 84.2% of firms above $100 million in revenue doing so in 2025 versus 11.5% of smaller firms below $1.25 million.
Insurance brokerage dealmakers are increasingly screening acquisition targets for technology and AI readiness, even as overall valuations remain tied primarily to growth, according to Insurance Business.
Executives at buyers including Trucordia and AGI said the key issue is not whether AI warrants a separate valuation line yet, but whether a target can be integrated into modern systems that enable more automation and data use after the purchase.
Trucordia, which has completed roughly 200 acquisitions over a two-year period and operates in 42 states, said integration readiness includes the ability to move acquired businesses onto a single agency management system so data can be leveraged in a homogeneous way.
The report also points to a wide gap in actual AI adoption, citing MarshBerry data that 82% of respondents expect AI to affect broker productivity or reshape broker roles, while only 13% are actively using AI tools across multiple parts of their businesses.
Reagan Consulting data highlighted that AI investment varies sharply by size, with 11.5% of firms with less than $1.25 million in revenue investing in AI in 2025 compared with 84.2% of brokers generating more than $100 million.