Welcome to Broker Brief, a weekly newsletter from The Institutes that delivers news, trends, challenges, and innovations curated for insurance brokers and industry professionals.

This week in Broker Brief: M&A deals for insurance producers down 10% from 2023. Flow Specialty launches AI agent to serve middle-market insurance customers. CPCU Society, UGA partner on leadership development program. Munich Re/Triple-I leaders discuss risk perception study.

Insurance M&A Deals Decline Despite Major Acquisitions

The insurance distribution sector saw a 10% decrease in mergers and acquisitions (M&A) in 2024, but the year was punctuated by several large transactions, according to analysis by OPTIS Partners, as reported by Risk & Insurance.

The big picture: The report highlights a trend of industry consolidation, with fewer unique buyers purchasing a large number of sellers. This trend, driven by an abundance of capital looking to invest in the sector, is expected to continue, albeit at a slower pace.

By the numbers:

What they're saying: “The industry continues to have an ample inventory of firms that will sell over the next 10 years, and there is no diminution of capital looking to invest in the industry,” the OPTIS Partners report stated.

The takeaway: Despite a slowdown in overall M&A activity, major insurance brokers are solidifying their market dominance through strategic, high-value acquisitions.

Go deeper: Read the full story on the Risk & Insurance website.

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AI Insurance Agents Target Professional and Cyber Coverage for Middle-Market

Flow Specialty Insurance Services LLC, a specialty wholesale brokerage, has launched the industry's first AI insurance agent, aiming to scale access to specialty insurance expertise for middle-market businesses, as reported by VentureBeat.

The big picture: By handling labor-intensive tasks and enabling human brokers to focus on delivering tailored policies, Flow Specialty's AI agents could potentially bridge the gap between small and medium-sized businesses and more comprehensive coverage available to larger enterprises, the company says.

What they're saying: “For far too long, the middle-market segment of specialty business has been underserved for retail brokers,” said David Derigiotis, president of brokerage and head of insurance at Flow Specialty. “We have solved these problems by using AI to dramatically scale our human brokers' abilities far beyond what has been previously possible.”

The takeaway: AI-powered insurance brokerage services could increase access to specialty commercial coverage for underserved small and medium businesses.

Munich Re/Triple-I RiskScan Survey Taps Cross-Market Viewpoints

Triple-I CEO Sean Kevelighan (left) and Kerri Hamm, EVP and head of cyber underwriting, client solutions and business development at Munich Re US, discussed RiskScan 2024 during the latest episode of Triple-I's Executive Exchange.

During the latest episode of Executive Exchange, Triple-I CEO Sean Kevelighan and Kerri Hamm, EVP and head of cyber underwriting, client solutions and business development at Munich Re US, discussed the findings of the RiskScan 2024 survey conducted by Munich Re and Triple-I.

The big picture: The survey highlighted the increasing importance of understanding and managing risks in an evolving insurance landscape marked by technological advancements.

Report Highlights:

Go deeper: Read the Triple-I Blog for more insights from the RiskScan Executive Exchange.

CPCU Society Launches In2Leadership Program in Collaboration with UGA

The Institutes CPCU Society and the University of Georgia (UGA) Terry College of Business Executive Education have partnered to launch In2Leadership, a leadership development program for risk and insurance professionals, scheduled for April 29–30, 2025, in Atlanta.

The big picture: This collaboration aims to equip industry leaders with the skills and knowledge to navigate the evolving landscape of risk management and insurance.

Go deeper: For further details about the program’s agenda and registration, visit the In2Leadership website.

M&As Come With Lots of Questions. How Insurers Can Maintain Stability for Clients and Brokers

As the pace of insurance mergers and acquisitions (M&A) is expected to increase, the transition period after a deal raises questions for insureds and broker partners about potential changes in coverage terms, premium prices, and underwriting teams, according to Risk & Insurance.

The big picture: The success of M&A often hinges on clear communication with customers, ensuring they are prepared for changes in coverage, cost, and team composition. The acquisition strategy, whether it's to cut costs or grow the business, significantly influences these changes.

What they're saying: “Communicating frequently and transparently with customers is crucial for success during a merger or acquisition,” said Vinko Markovina, executive vice president, MidCorp, Arch Insurance. “The entire organization should be proactive in fielding calls and communicating with key brokers and clients.”

The takeaway: Effective communication and a clear strategic vision are crucial for insurance companies to successfully navigate mergers and acquisitions while maintaining customer and partner confidence.

Go deeper: Read the full story on the Risk & Insurance website.

Designation Overview: Associate in Risk Management (ARM)

The Institutes Designations’ Associate in Risk Management (ARM™) provides a holistic and strategic understanding of risk assessment and treatment. It equips professionals to make a real-world impact in their organizations.

Who it’s for: The ARM is designed for a wide range of professionals involved in making risk-based decisions, including:

Skills gained: Earning the ARM equips you with critical skills to advance your risk management career:

What it takes: You can earn the ARM in 9 to 12 months, on average:

Upon completing the ARM, you’ll have finished 3 out of 5 core courses required for the prestigious CPCU® designation. ARM courses also provide credit toward several other Institutes designations.

Go deeper: Learn more about the Associate in Risk Management (ARM) and access a free sample course to see if it’s the right fit for you.

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