Why PE Consolidation Is Actually Good for Independent Agencies

If you're on LinkedIn, you've seen it: another agency sold to private equity. Then another. Then five more.

The numbers are real. PE-backed buyers account for about 70% of all agency acquisitions right now, with 700-1,100 deals happening annually. It's the biggest consolidation wave our industry has ever seen.

Most agents see this and panic.

I see it differently.

This is one of the best opportunities independent agencies have had in 20 years. But only if we understand what's actually happening and position ourselves correctly.

What Happens After PE Buys

The pattern repeats every time:

Leadership changes. Service teams get centralized. Staff turnover increases. The local identity disappears.

Meanwhile, agencies that stay independent suddenly offer something PE platforms can't: stability, the same team year after year, decisions made in-house instead of by corporate, and real advisory relationships.

Independence used to be normal. Now it's a competitive advantage.

Why Independents Still Win

Carriers still need us. They depend on independent agents to write profitable business, maintain retention, handle underwriting correctly, and bundle households. We consistently outperform national call centers and direct writers in every category carriers actually care about.

Referral partners prefer us. Loan officers and realtors want fast responses, smooth closings, and the same point of contact. PE-owned agencies can't guarantee that consistency when they centralize service across regions and struggle with turnover.

And talent is shifting back to us. Burnout inside roll-ups is real. High quotas, constant restructuring, and turnover push experienced people to look for better culture, stability, and work-life balance. Independent agencies that modernize are becoming the preferred home for great CSRs and producers.

What We Need to Do

Here's what's working for us at Foresight Insurance:

Position yourself clearly. Tell the story: We're local. We're independent. We're not backed by private equity. Your service team stays the same. Your relationship matters here. Clients value this more than they used to.

Build a strong referral engine. The most durable agencies in the next decade will have deep relationships with lenders, realtors, CPAs, and small business networks.

Operate like a modern firm. Independent doesn't mean outdated. We run a 4-day workweek, use shared inboxes so anyone can help any client, maintain documented SOPs, and built a learning management system. We operate like a 100-employee company even though we're significantly smaller.

With AI and modern tools, you now have access to capabilities that used to require massive scale. Automation, virtual teams, structured workflows, CRM systems that actually work. You can match the operational strength of much larger agencies while keeping the client relationship at the forefront, answering the phone when someone calls, emailing back quickly, solving problems, and just being human.

Double down on writing better business, cross-selling, and retention. Agents who focus on prequalifying prospects, bundling at the point of sale, and having real coverage conversations upfront will experience higher household retention rates.

This approach lets you run leaner too: fewer clients with more policies per household means less service work. And it means you're writing and keeping more profitable households in your book. The revenue compounds when you do the work right the first time instead of trying to add policies later.

Consider micro-acquisitions. You don't need PE money to buy a $1M-$3M premium books. Most agents want their clients treated well and their legacy preserved.

In Closing:

PE will keep buying. Big brokers will keep consolidating.

But independent agencies that stay modern, relationship-driven, process-oriented, and community-rooted will outperform over the next decade.

This is a turning point. And independents who adapt will come out stronger than ever.

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Happy Thanksgiving. I hope you enjoy delicious food with great company. This is the real reason we're in this business, to enjoy moments like this with our loved ones.