Key Industry Trends to leverage in 2026

As the insurance industry evolves, it is crucial for agency owners to stay up-to-date on the latest trends. This article delves into seven key industry trends that insurance agencies should monitor closely as they gear up for 2026.

Mergers and acquisitions (M&A) activity in 2025 has seen shifts in buyers and a slowdown in acquisitions. Various factors, including strategic considerations by buyers, inflation, and higher interest rates, have contributed to this decline. According to OPTIS Partners, deal counts have dropped by 7% from previous quarters. Pricing remains high, especially for publicly traded brokers, large regionals, and agencies backed by private equity. Prices may continue to rise due to diminishing supply and increased demand from major buyers.

Key players in the industry have made significant moves. HUB, for example, added over 50 merger partners in 2025 as part of its growth strategy. Similarly, Foundation Risk Partners has rapidly grown since its inception in 2017 and aims to continue expanding through acquisitions in 2026. Alliant Insurance Services, Alliant celebrated its 100th anniversary by solidifying its position as the largest privately held broker in the U.S. by focusing on high-quality acquisitions that align with its core operations. Inszone, on the other hand, has been actively acquiring agencies to expand its reach and services across 21 states.

Choice Financial Group (CFG) and Arthur J. Gallagher have also been active in the M&A space, completing multiple transactions in 2025. CFG looks to prioritize cultural and strategic alignment in its future acquisitions, while Arthur J. Gallagher remains competitive in seeking out agencies nationwide. These acquisitions reflect the ongoing trend of consolidation and growth within the insurance industry.

Looking ahead to 2026, HUB, Foundation Risk Partners, Alliant Insurance Services, Inszone, CFG, and Arthur J. Gallagher are all expected to continue their M&A activities. While the landscape may shift due to external factors like interest rates and economic uncertainty, these key players are well-positioned to navigate the changing market dynamics.

In conclusion, keeping a pulse on industry trends is essential for insurance agencies looking to remain competitive in the evolving landscape. By staying informed and strategically positioning themselves within the market, agencies can capitalize on emerging opportunities and drive growth in the year ahead.