Consolidation in Canada’s insurance brokerage sector isn’t yesterday’s story – it’s the next chapter. According to Ron Stokes (pictured), financial services strategy & transactions leader at EY-Parthenon, the dealmaking drumbeat is not about to fade.
“Consolidation within the brokerage sector is expected to persist and may even accelerate in the coming months, with the possibility of more platforms merging and larger firms continuing to acquire and integrate smaller brokers,” he said.
At the heart of this wave is private equity, and specifically the way PE-backed platforms are changing the shape of the market.
“We’re seeing private equity play a significant role, particularly through platform consolidations that are reshaping the industry’s landscape. For example, the recent merger between Navacord and Acera brought together two major platforms, demonstrating how scale can be achieved through these strategic moves.”
That kind of deal is more than just a headline; it’s a playbook. Stokes expects platforms to keep rolling up local and regional brokers, not just for premium but for cost and capability gains.
“Looking ahead, platforms will continue consolidating local brokers to realize operational efficiencies, especially by leveraging shared services,” he said.
He added that this trend is also driven by the need to meet rising regulatory, compliance, and cybersecurity expectations, all of which come with increasing costs.
“Lastly, as brokerage owners approach retirement, effective succession planning is becoming essential to ensure business continuity and future growth in the sector,” he said.
In that environment, smaller independents don’t just survive on the sidelines – they become targets.
“As smaller firms become increasingly attractive acquisition targets, competition for deals is likely to intensify.”
Whether that competition really heats up will depend on the macro backdrop as much as on strategy. Stokes points to a short list of indicators brokers should keep on their dashboard.
“Key indicators to watch include interest rate fluctuations, carrier profitability, and broader market conditions, all of which will influence the pace and direction of consolidation.”
Those macro forces are already feeding through into how buyers and sellers think about timing, pricing and risk.
“Several macroeconomic and sector-specific factors are shaping broker deal appetite in Canada [in] 2026.”
On the revenue side, the picture is mixed but far from bleak. Some segments are buoyant; others, less so.
“A challenging retail market is driving premium growth for brokers while select commercial sectors are experiencing pricing pressures, complicating deal-making dynamics. Broader economic pressures are moderating the pace of mergers and acquisitions and despite these headwinds, the strategic importance of M&A activity continues to be recognized across the industry.”
The biggest swing factor remains money: who has it, what it costs and how much risk investors are willing to take.
“The availability of capital remains a crucial consideration, with its accessibility closely tied to prevailing interest rates and broader economic trends.”
Even with those constraints, Stokes doesn’t see a broad reset on valuations. Instead, he sees a market that rewards clear winners – and increasingly, savvy smaller players.
“Top-performing firms are expected to maintain their strong valuations, driven by exceptional organic growth,” he said.
“Meanwhile, smaller firms may experience an increase in value as the mid-market continues to contract, creating new opportunities for those able to adapt.”
In that sense, the next phase of consolidation won’t be a rising tide lifting all boats; it will be selective, and unforgiving of weak fundamentals.
That selectivity doesn’t stop at price or growth; it extends to how well acquirers execute once the deal closes. Stokes pointed out that “successfully integrating back-office functions promptly is essential to prevent efficiency losses following a merger.”
Early choices on systems matter: “Early selection of a unified underwriting platform is also critical, ensuring smoother operations and minimizing disruption.”
In his view, the human side can make or break the thesis. Communication failures can create friction among staff and hinder the overall success of the integration, he said, arguing for clear roles and expectations from day one.
Ultimately, market dynamics will be pivotal in shaping these trends, and brokers are advised to closely monitor economic indicators and competitive activity to better anticipate future consolidation momentum, Stokes said.
“Across the industry, companies that demonstrate operational efficiency will be rewarded by the market, reflecting the diverse performance levels seen among Canadian brokerages.”
