The number of retail brokers regulated by the FCA has reduced by 54% between 2006 and 2024 – this is leading to new trends and acquisition focuses across UKGI in 2025. However, more M&A is definitely on the cards…
In March 2025, I had the pleasure of visiting HM Treasury with broking trade association Biba.
The purpose of this get together was to discuss with government the weight of regulation in our industry and what could be done to reduce the regulatory burden currently accosting firms.
Those that attended alongside me were from brokers of all shapes and sizes. While the issues we all therefore faced were obviously sometimes different, so many challenges remained the same – and have been the reason why so many brokers have exited the insurance market.
Simple changes can be made to rectify these similar challenges. Both the FCA and current government seem to be genuinely engaged in tacking this problem around regulation. Well done to Biba for focusing such energy on this issue.
Cyclical consolidation?
According to the FCA’s retail intermediary market data from 2006/7, there were 8,261 authorised firms at this time. In 2023/24, this figure had fallen to 3,809 – a reduction of 46%.
This is a shocking statistic, especially considering that regulation in our sector was designed to promote choice for consumers. This is harder to do when nearly half of the brokers established just under 20 years ago no longer exist.
It would be churlish to lay the blame for broker consolidation solely at the door of the regulator, but the reduction in broking firms remains dramatic. This is why so much is being written in the trade press currently about the dearth of acquisition targets and the end of M&A as we know it here in the UK.
Our market has always been cyclical – consolidation happens at pace, then slows down. Opportunities still abound – be it here, elsewhere, by diversification, or encompassing new talent, for example.
But just take a look at the news over the last month. On 17 March 2025, Howden confirmed its proposed £7.7bn deal to acquire US-based rival Risk Strategies, setting it up for a “£23bn stock market float”. This is staggering.
Furthermore, Gallagher committed £9.4bn to buy AssuredPartners in December 2024.
Read: UK M&A activity increases in 2024 despite shift in investor focus
Read: Briefing – What the Aviva and Direct Line mega-deal means for UKGI
Explore more M&A related content here, or discover more news here
As an industry, we all know that the large will eventually buy the large – and I wonder whether these recent acquisitions could be evidence of the start of some other very big deals.
Certainly, large brokers that have not bought at this size before will have their boards debating why not. And if splashing their cash in this way is not the investment for them, then these brokers will be heavily debating – despite what they might say publicly – whether they should become part of someone else’s appetite.
This dynamic could leave the UK’s broking mid-market wide open to any business that wishes to grow into it – this is where true value lies, in my opinion, for clients, employees and shareholders alike, providing a healthy future for the younger generation in our industry.
UKGI is also seeing diversification, with many of the larger consolidators looking outward from these shores to repeat what they have done in the UK abroad.
For me, this is the riskiest of strategies and one of those cyclical things we see from time to time. However, if carried out well, this approach will bring true value to shareholders.
Meanwhile, do not underestimate the M&A activity continuing in the UK – 3,809 is still a big figure and the number of multiple acquirers remains low in comparison.
Insurtech interest
It is also interesting to define what a ‘broker’ is nowadays.
Most of the multiple acquirers will eschew firms focused on private motor, home, office and micro SME, but they will instead gravitate towards MGAs, health and wealth businesses or outsourced claims functions that stretch and shorten the services they provide as attractive M&A targets.
This tactic is for good reason and enables these firms to become an outwardly more comprehensive home for clients, enabling them to acquire a greater variety of businesses.
Even in the bumpy world of insurtechs, acquisitions are taking place.
For example, in February 2025, FloodFlash – an award winning, parametric flood insurance brand – confirmed its acquisition by US-based NormanMax Insurance.
Sitting on the board of a few insurtechs, I believe the interest in these businesses is as high as it has ever been – not just in terms of M&A, but also around funding. This is something that has held many of these companies back in the past.
Funding, however, is an important consideration as true shareholder value will only be realised if real growth, real retention and real innovation is seen alongside any healthy M&A activity.
So, don’t write off UK M&A just yet. While the number of deals from 2024 and into 2025 may be lower than previous peaks, I think things may become very noisy.

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