Mike Kimlinger
Director, National Sales Recruiting
The U.S. insurance broker and agency sector has experienced a compound annual growth rate (CAGR) of approximately 3.8% since 2020, with projections indicating it may reach around $261.7 billion by 2025. It’s estimated that roughly 443,000 brokerages and agencies will be operating across the country.
The market leader? Marsh.
From Marsh’s vantage point on the industry and its recurring themes—rapid tech innovation, growing mergers and acquisitions (M&A), and more—here are four important trends producers should keep an eye on in 2026:
Advanced technology is crucial for retaining clients.
In today’s world, a casual Sunday golf game alone may not secure client loyalty. Producers who use a broad array of modern technological tools tend to generate more new business and operate more efficiently. In fact, tech-savvy producers may generaye about 30% more new business than those who don't use technology.
High-tech solutions that enhance client value are vital throughout the brokerage—from front-end tools like sales platforms and client portals that help attract and support clients, to backend systems such as claims management, safety, and loss control technologies that streamline processes and improve service delivery.
As you prepare for 2026, consider: Do I have access to the latest and most flexible technology tools to help me win and retain clients?
Political and economic factors, combined with increased M&A activity, drive market uncertainty.
Forecasts suggest that large firms with revenues exceeding $10 million and small firms with revenues under $500,000 may experience significant growth over the next decade. Mid-sized firms earning between $500,000 and $10 million, however, are expected to face the greatest pressure toward consolidation, as gaps in technology, carrier access, and operational efficiency push them to merge with larger entities.
Between January and May of this year, approximately 68% of mergers and acquisitions were led by buyers backed by private capital. M&A activity remains strong with more private equity-driven large consolidations anticipated in 2026. From a broker’s viewpoint, many private equity-owned firms are still building their operations while running them—working toward profitability and sustainability—while others, like Marsh McLennan Agency, have been successfully doing this for years.
Certain lines of business (LOB) premiums are rising, while others are stabilizing. In Q2 2025, overall premiums increased about 3.7%, slightly below Q1’s 4.2% growth. Umbrella policies saw the largest increase at 11.5%, while D&O premiums declined by 2.5%. We advise firms to focus on business objectives, sales momentum, revenue goals, and organic growth to navigate the market’s unpredictability and variability by LOB.
As you look ahead to 2026, ask yourself: Am I part of a stable brokerage amid today’s external challenges and uncertainty? How likely is my firm to experience a merger or acquisition?
Specialty markets are becoming more targeted.
New industry verticals are creating attractive specialty opportunities in 2026:
- Senior living and staffing companies are expanding their insurance and risk management needs as the baby boomer generation ages and retires.
- Larger brokerages with strong client relationships are well-positioned to expand their services to include wealth management, 401(k), and retirement planning.
- More organizations are shifting to self-funded employee benefits plans and seek trusted advisors to help them manage the cost savings, control, and flexibility these plans provide.
As you prepare for 2026, consider: Do I have access to the expertise and resources needed to develop and differentiate myself in my niche market?
The competition for talent is intensifying.
With half the workforce approaching or entering retirement, the insurance industry is projected to face a shortage of over 400,000 workers by 2036. Approximately two-thirds of baby boomers are now 65 or older, having reached or surpassed traditional retirement age. While many worked longer over the past decade, retirements are now accelerating.
Next year, brokerages will likely need to onboard and train less-experienced producers while balancing remote, hybrid, and in-office work preferences. This shift means producers may face increased pressure to quickly develop skills and adapt to evolving work environments. Meanwhile, firms will face strong competition to attract and retain the next generation of producers.
As you look at 2026, ask yourself: Do I have the support, professional growth opportunities, and flexible work options needed to elevate my book of business?
New year, smarter strategies
It’s widely recognized that ongoing political, economic, and societal shifts continue to influence the insurance market. Growth is expected into 2026, with indications it may persist.
Start the new year with a clear perspective. Embracing modern technology can potentially help you better serve your clients. Stay aware of market cycles as conditions and lines of business both harden and soften. Deepen your specialization to provide even greater value.
And if your current environment feels restrictive, don’t hesitate to explore new opportunities.
