After years of relentless consolidation, momentum is shifting in the insurance market. For brokers who want to preserve their culture and chart their own course, the current dip in M&A activity may present a rare window of opportunity.
Mergers and acquisitions have significantly reduced the number of independent brokers across the UK - but that trend may be slowing. According to Marshberry, there have been “35 mergers and acquisitions involving UK insurance brokers year-to-date” as of April 2025, representing a 26% drop from the “47 deals recorded at the same point in 2024.” Marshberry attributes this to greater caution among buyers and “an acute lack of supply of mid-sized acquisition targets left to go for in the UK.”
For commercial brokers navigating an uncertain future, management buyouts (MBOs) may offer a powerful alternative to selling. Laura Hancock (pictured), managing director at Yutree, supports this view, stating: “I think lots of brokers don't even think that management buyouts are a route for them.”
Hancock believes that when considering a management buyout, you firstly have to understand your motivation: “What is your purpose?” she asked. “Where do you want to go? Because if you just want to be a broker and look after your clients, and you don't care what banner you're under, trade sale might be right for you. If you want to trail blaze with your business and your culture, because you believe in it so wholeheartedly, don't give up that purpose too quickly.”
Hancock argued that an MBO can unlock transformation and investment - giving leaders the autonomy to act on their vision. For Hancock, gaining control was key to enabling a series of positive changes in her business, which underwent an MBO in April. “We're making some massive changes, and they've all kind of been facilitated through the management buyout. We knew what we wanted to do. We needed to get the business under our control so that we could go out and do these things.” She added: “We've been able to secure not only the financial future of the business, but we've been able to secure the culture of the business.”
Additional benefits of an MBO for brokers may include:
The success of an MBO is often supported by a broker’s wider network and ability to modernise. Hancock underlined the evolving brokerage landscape. “Lots of brokers have been selling up,” she said. “However, there are lots of vehicles for new startups. There's lots of support for independent brokers. So I think we're going to kind of join together. Community is going to become ever more important, your network, who can help you. What compliance support is there? Learning your trade association with BIBA and the CII.”
She also warned of the risks of falling behind operationally: “I think the big issue for brokers is operational efficiencies…I think we need to turn our attention to harnessing what's available with AI and technology to take away the low level admin jobs and free up our brokers and underwriters to do what they do best which is to advise and to be the human in the middle.”
Tech can help brokers modernise by:
Hancock believes that with MBOs, failing to plan for succession can leave a brokerage vulnerable - particularly when a key figure retires or exits. Hancock emphasised the importance of thinking ahead. “So you get to a point where someone wants to retire, or someone wants to leave, and that can really upend a business,” she said. “So it's absolutely vital brokers plan for that. They work out who their rising stars are, who's going to be in succession. Might there be people here who might do another MBO of us? So if you work towards that, even if it's not the end goal, you will be empowering everybody to thrive, whatever the outcome is for this business.”
Steps for succession planning include:
Regardless of the decision that brokers make about an MBO, Hancock believes brokers have the ability to shape the profession’s future and should take pride in their role as trusted advisors. “I think we're in a challenging time at the moment,” she said. “So in a soft market, rates are coming down, which means brokers’ income coming down. I think it's key to turn our attention to differentiating ourselves as an advice driven profession… insurance brokers should be alongside solicitors and accountants… we're not just selling a product.”
She emphasised the pivotal part brokers can play in insurance if they choose to: “I think it's so important because, otherwise, brokers will just be at the mercy of the market, whereas, they can be forging through that, coming out the other side, and doing more than just selling insurance - being a real extension of a client's business and a partner in everything that they do.”
