UK broker M&A has slowed — many independents prefer it that way

# Quick summary UK insurance broker mergers and acquisitions have slowed sharply in 2026 after a busier 2023–24. Some smaller, independent brokers view staying outside the deal cycle as an active business choice. They say independence affects governance, client promises and how they approach technology, including AI.

# Market snapshot Deal counts: 151 transactions in 2023 and 152 in 2024, falling to 99 in 2025. By early August 2026, just 47 deals were completed. Several historically acquisitive firms have slowed or paused UK dealmaking.

# Why some brokers choose to stay independent Independence is framed as deliberate, not a temporary holding pattern. Reasons offered by brokers interviewed include:

• Control: Independence allows owners and managers to make strategic decisions without external acquirers dictating priorities.
• Continuity for clients: Owners say remaining independent helps them promise stability, consistent people and straightforward communication.
• Culture and autonomy: Several brokers said being bought can change how a business operates and how it serves clients.

# Ownership moves that lock in independence Some firms moved beyond verbal commitments and reorganised ownership to preserve independence. Example: Thomas Carroll Group shifted ownership into an employee ownership trust in 2023, placing 94% of equity into that structure. For leadership there, selling was not simply declined — the ownership model itself was changed to keep control internal.

# Three responses to AI and technology Independents differ on whether they can and should take on AI without the scale of larger groups. Interviewed brokers described three practical responses:

• Cautious avoidance: Some prefer to limit adoption until systems and error rates are better understood. They worry about over-reliance and adding systems they do not fully control.

• Sell to gain scale and capability: At least one broker sold into a larger, sector-aligned group partly to gain access to AI and other resources they felt a small business could not sustain alone.

# What independence means for operations and clients Independence influences how brokers position themselves with clients. Owners say they can promise continuity of personnel and decision-making, which they believe some clients value. Independents also expect their business choices to be driven by client needs and long-term service rather than metrics that matter primarily to potential acquirers.

# Where this leaves the market The slowdown in deals has created space for firms that want to stay independent and focus on specialist service models. It has also exposed a practical challenge: independent businesses must decide whether to absorb the costs and risks of developing or adopting advanced technology, to partner, or to sell for scale.

# Bottom line Deal volumes are down in 2026. For many small and mid-sized brokers, that's not regret — it's a strategic stance. The central trade-offs they highlight are control and client continuity versus access to scale and technology, particularly AI.