Insurance broking firms bring succession planning forward

Insert article hereAs business conditions firm up for insurance brokers and other professional services firms, now is the time to consider getting ahead of succession planning, rather than waiting for a forced transition.

NAB’s latest Monthly Business Survey showed business confidence slipped into negative territory in February for the first time in nearly a year after the latest rate rise. Different parts of the economy experienced that weakness in different ways.

Finance, business and property services remained resilient relative to other sectors in the February 2026 survey, with conditions holding above the national average even as momentum softened elsewhere. Insurance brokers sit firmly within that part of the economy.

That matters for firms thinking about ownership transition. Succession is rarely easiest to tackle when conditions are under pressure – ideally, its planning occurs from a position of strength. When businesses are performing well, balance sheets are sound and leaders have a clearer view of the strategic options available to them, the groundwork for a smoother and more successful transition is far easier to put in place.

NAB’s Performance Era survey found that 58% of professional services firms, including insurance brokers, do not have a formal succession plan, even as 75% of business owners expect to exit their business within the next decade. That represents a significant volume of ownership transition likely to take place over a relatively short window.

For firms that have already begun planning, that shift can create opportunity as much as it can pressure.

Succession transactions that happen from a position of strength tend to produce better outcomes. They provide more flexibility on structure, more time to identify the right leaders and greater capacity to protect what matters most, culture, independence and the client relationships built over many years.

The financial considerations are real. Equity buy-ins at the scale of a $10–20 million revenue broking firm typically require $2–5 million in capital, which most incoming leaders do not have outright.

But staged ownership structures and financing arrangements built around the firm’s cashflow have made internal succession increasingly achievable for businesses that approach it with sufficient lead time. The barrier is not insurmountable. It simply requires planning that a reactive transition rarely allows.

The firms getting this right have reframed the question entirely. Succession is not simply an exit event. It is part of the natural lifecycle of a business. Planning for it often begins years before ownership changes hands, giving founders time to consider how they want the transition to unfold. This may involve gradually reducing their ownership, bringing in new partners, or stepping back while remaining involved in an advisory capacity.

Bringing in equity partners deliberately, creating genuine ownership pathways for the next generation and building governance structures that do not depend on a single principal can strengthen a firm long before a founder steps back. In many cases, businesses that scale through deliberate succession planning ultimately become more valuable than they would have under continued sole ownership.

Insurance broking is a relationship industry. Managing the transition of client relationships is often one of the most important parts of succession planning. Firms that manage succession well often begin introducing future leaders to key clients well before ownership changes hands, allowing relationships to transition gradually over time.

The current environment provides useful context. The sector is performing well relative to the broader market, the structural tools to support internal succession are aptly developed and there is a generation of broking leaders looking for ownership pathways.

For firms that have been deferring the succession conversation, that combination makes the present moment a constructive time to start planning.

Important Information

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs.

Professional Services