Insurance consolidation forces brokers to upgrade technology

Deal activity climbed through 2022, then stayed steady afterward—setting a tougher baseline.

The insurance industry’s ongoing consolidation is increasing pressure on agencies and brokers to strengthen their technology capabilities, according to CB Insights.

Insurance merger and acquisition activity rose 50% between 2018 and 2022 and has remained steady since.

Large deals, including WTW’s $1.3b purchase of Newfront, reflect the scale of consolidation facing agents and brokers.

Agencies and brokerages have grown faster than insurers in recent years. This has drawn more technology providers to focus on tools designed specifically for agency growth.

Agency management systems and comparative rating platforms remain core to operations, but AI-supported tools are becoming more common, particularly in sales and underwriting workflows. 

CB Insights identified 84 companies offering agent- and broker-focused technology across 11 market segments, including billing and payments, lead management, and proposal comparison.

The most established markets are agency management systems, comparative rating, and billing platforms, where companies show stronger commercial traction and longer operating histories. 

Newer segments, especially those using generative AI, are attracting early-stage investment. 

Lead management, proposal review, and underwriting intelligence platforms accounted for about 45% of equity deals between the first quarter of 2022 and the third quarter of 2025.

As consolidation continues, agencies are weighing established systems against newer AI-driven tools as they adjust their technology strategies to a more competitive market.