Insurance brokers are navigating a challenging market in 2026 as pricing softens and organic growth slows, putting pressure on the industry’s expansion trajectory. Global insurance industry premium growth slowed to just 1.3% in 2026, down sharply from 3.9% in 2025, according to data from Risk and Insurance released in July. Commercial insurance rates declined 6% in the second quarter of 2026, marking the continuation of a soft market that began in late 2025 and has reshaped the competitive landscape.
Public insurance brokers reported largely flat organic growth in the second quarter of 2026, reflecting the headwinds. According to MarshBerry’s earnings analysis from August, major publicly traded brokers posted mixed results: Aon and Marsh each reported 5% organic growth, Arthur J. Gallagher achieved 6%, while Brown & Brown posted negative 0.7% organic growth. The Baldwin Group and WTW reported 5% and 5% respectively, though Ryan Specialty saw its organic growth rate decline to 6.7% from 11.8% in the first quarter.
The slowdown extends across the independent broker channel as well. The 2026 Best Practices Study update, released jointly by the Big “I” and Reagan Consulting in August, found that organic growth for top-performing independent agencies decelerated in six of seven revenue bands, ranging from 6.2% to 10.2%, down from 8.7% to 11.3% in 2025. The deceleration was driven by a continued softening in property and casualty rate environment, as pricing pressures eroded commission-based revenues.
Despite the growth slowdown, brokers have maintained profitability through operational efficiency. Best Practices agencies sustained pro forma EBITDA margins ranging from 23.2% to 30.7% across revenue categories, with the top-performing quartile of smaller firms posting margins as high as 42.5%. This resilience has allowed many brokers to invest in technology and talent even as top-line growth moderates, according to the Big “I” and Reagan Consulting analysis.
Merger and acquisition activity, a key growth lever for brokers in recent years, also showed signs of cooling. As of May 31, 2026, there were 241 announced M&A transactions in the United States insurance brokerage sector, down 5.1% compared to the same period in 2025, according to MarshBerry data from June. While consolidation remains a strategic focus for private equity-backed platforms and larger brokers seeking scale, the number of deals has declined from post-pandemic highs, signaling a recalibration in the market.
Industry analysts expect brokers to adapt to the softer environment through targeted strategies. Webb Milward, a partner with Reagan Consulting, noted that “many Best Practices agencies continue to perform at high levels while further strengthening their ability to perpetuate long-term, despite the current insurance climate.” He added that agencies are expected to increase investment in producer recruitment and development to support growth as the market stabilizes.
The soft market reflects broader industry dynamics: abundant insurance capacity, heightened competition among carriers, and diminishing rate momentum. Swiss Re projected U.S. property and casualty premium growth to slow to 3% in 2026 and 3.5% in 2027, with return on equity declining to 12% in 2026 from higher levels in prior years. For insurance brokers, this compressed rate environment means commissions tied to premium volume are under pressure, requiring efficiency gains and strategic M&A to offset organic growth constraints.
Sources
- Risk and Insurance — Global insurance industry premium growth forecast for 2026
- MarshBerry — Q2 2026 public broker earnings analysis and M&A transaction data
- Big “I” and Reagan Consulting — 2026 Best Practices Study update on organic growth and profitability
- Swiss Re — U.S. property and casualty premium growth projections
