Insurance M&A in 2026: A Selective Market Doesn’t Mean a Closed Market

So, I think there is a general consensus that the insurance M&A volumes have slowed some. Some buyers have been acquired. Some buyers are just out of the M&A market. Some buyers are being more selective. But selectivity does not equal inactivity, and many buyers are still engaged in 2026.

Selectivity is partly driven by the current rate environment. For several years, buyers could count on higher organic growth through rate alone; but as rates begin to decelerate, that math changes.

Values have likely hit a high-water mark and have started coming down a bit, shifting the focus even more to quality. Businesses with strong leadership, strong sales teams and differentiated capabilities or geographies are standing out.

At the same time, the pool of high-quality buyers has also narrowed. Many firms with long-standing histories, deeply rooted cultures and strong leadership teams who had been high volume buyers in recent years have themselves already been acquired. Now, newer roll-up firms are entering the market, and but these new firms they don’t yet have the same depth of culture or institutional history. For sellers who care deeply about where their business goes and what happens to their people, there may be fewer opportunities with buyers who share their long-term mindset.

So, no, firms interested in acquisition in 2026 have not missed their window. But this also isn’t necessarily the time to rush. Strong sellers will use this period to buckle down and demonstrate strong performance, risk management and culture. Preparing for a potential sale should be approached with the same vigor you apply to growing the business itself.

Execution matters more than tools

If you’re thinking about selling your business in the next two to three years, technology will be part of the conversation—but execution will matter more than the tools themselves.

Buyers aren’t looking for experimentation or future plans. They want to understand how technology is being used to run the business today. That includes how you’re servicing accounts, generating new leads, retaining teammates and improving efficiency across the organization.

This is especially true as AI becomes more embedded in day-to-day operations. You don’t need to have everything figured out, but you do need to show that technology is being applied intentionally and responsibly.

You can’t ignore cyber risk

A head-in-the-sand approach to cybersecurity can jeopardize deal timing, valuation and buyer confidence. Even without a breach, gaps in cybersecurity preparedness can raise questions during diligence that slow momentum and introduce uncertainty.

Buyers expect cybersecurity to be treated as part of how the business is run, not as a technical afterthought. That means having a clear understanding of where your data lives, how systems are protected and how incidents would be identified and managed if something went wrong.

In today’s market, demonstrating the strength of your firewalls has become a baseline expectation in M&A, not a differentiator.

Strong culture wins deals

Culture is the big differentiator. With more roll-up firms entering the market, businesses—on both the buyer and seller side—that can demonstrate a strong culture, long-tenured leadership and clear values stand out.

If you’re preparing for a sale, maintain a long-term staffing mindset. Don’t stop interviewing and hiring talent to grow your team. Build a bench. Firms that hire from strength send a clear signal about stability and leadership.

Talent challenges aren’t new. Risk management remains low on the list of preferred career paths for younger generations. It’s important for firms to have presence at the college level and focus on not only recruiting but also building interest in the industry.

The current market rewards discipline

Insurance M&A hasn’t come to a halt. Firms like Brown & Brown are still active, but the activity today looks different than it did a few years ago. Buyers are spending less time chasing momentum and more time observing how businesses operate, how decisions are made and how risk is managed day-to-day.

In a more disciplined market, surface-level growth matters less than durability. Buyers are paying closer attention to whether performance is repeatable, and culture can hold up under pressure.

For sellers, the strongest outcomes won’t come from reacting to the market. Build a business that’s resilient, intentional and built to last.

This article was co-authored by Mark Prampero, Regional Director of Acquisitions, and Laban Miller, CPA, Senior Acquisitions Associate.

Interested in speaking with our Mergers & Acquisitions team? Email [email protected] or contact us directly.

Acquisitions for Agency Owners
by Vaughn Stoll, SVP & Director of Acquisitions

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