Why brokers’ dreams for business succession may not come true

Two years ago, when Canadian Underwriter’s National Broker Survey first asked broker owners which strategies they were considering to sell their businesses to new owners, the responses were more idealized than they are today.

Only 43% responding to 2024’s survey said they’d consider selling to a brokerage consolidator (dropping to 35% in 2025). And 44% of 2024 respondents said that, if possible, they’d sell to current partners or co-owners.

Times have changed. And perhaps that’s to be expected after more than a year of tariffs and economic challenges.

Our 2026 National Broker Survey finds half (50%) of broker owner respondents will consider offers from brokerage consolidators, and men (52%) are more likely to say they’ll go that route than women (33%).

“Why not?” says a verbatim response from a broker who indicates he plans to go with a consolidator, “Most likely meets my personal requirements.”

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Another 40% say they’ll consider sales to current managers and employees, and just 30% responding in 2026 say they want to sell their share of their business to current partners and co-owners. Women (50%) indicate they’re considering this option more frequently than men (35%).

One broker at a firm with fewer than 20 employees says he wants to “keep ownership local and independent.” But another who owns a firm with between 20 and 99 employees notes he’d, “love to keep independence. However, it’s becoming very hard.”

Just 27% of 2026 respondents say they’ll consider sales to family members, down from 35% in 2025 and 38% in 2024. Respondents were able to choose more than one option so totals will not equal 100.

Canadian Underwriter’s 2026 National Broker Survey heard from 169 brokers, with 32 identifying as brokerage owners or principals. The survey was conducted in February 2026, with support from Sovereign Insurance.

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Those planning to pursue selling express strong feelings about preserving family ownership. “I would like to see the brokerage continue with my son who has 21 years of experience,” says one respondent.

Another adds selling to family will put his child in a “good position to succeed.”

And a third commenter stresses family ties by saying, “I find insurance service to be a rewarding career, money wise and satisfaction wise. I would like my child to adopt this as their chosen career.”

Meanwhile, selling to private equity firms will be considered by 27%, consistent with responses in prior years. Men (26%) are more prone to the PE purchase option than women (17%), with one broker owner from a small firm emphasizing such firms, “Pay up front and [are] less hassle than dealing with certain insurance companies.”

To that point, 20% of respondents indicate they’ll consider selling directly to an insurance company. One verbatim responses says this option ensures a “smooth transition,” and a second verbatim response from the owner of a smaller firm says, “They have the money and they will keep me employed.”

Only 3% of 2026 respondents say they’ll either close or wind up the business.

Consider versus prefer

There’s also a difference between which sales routes broker owners say they’ll consider and those that they prefer – although seller preference in 2026 does show a shift toward sales to brokerage consolidators.

Survey respondents in 2026 are in a three-way tie, at 21% each, over preference to sell to family members, partners or co-owners, and consolidators.

But, while preference for family and partners or co-owners remains statistically consistent with prior surveys, the 21% saying they prefer sale to a consolidator represents a jump from 7% displaying that sentiment in 2025 and 16% in 2024.

All of the respondents favouring a sale to consolidators in 2026 are men, while sales to family members are more strongly favoured by women (50%) than by men (16%). The numbers are closer for sales to partners or co-owners at 25% women and 21% men.

Meanwhile, 17% of respondents say they’d prefer a sale to current managers and employees, 8% are hoping to sell to private equity firms, and another 8% favour a sale to an insurance company. Only 4% indicate a preference to close the business.