Consolidation – Fight or Flight?

By Alistair Body
Business Development Director, Momentum Broker Solutions

Consolidation has dominated the headlines of the insurance press for a number of years and continues to fuel the fire in the insurance broker start-ups world. Amongst our recent start-ups we have seen individuals working for a family business being taken over by a regional broking house and then acquired by a large consolidator in a matter of weeks.

Whilst consolidation is a natural part of evolution, for those working within these businesses the upsides may not be clear. They will inevitably question:

• What happens next?
• How will it affect me?
• Will it really be “business as usual”?
• Will the culture change?
• Will I still have the autonomy to manage my clients in the way they want?

Change is inevitable

Change is a daily occurrence in our personal and working lives. When forced upon us through business consolidation employees, do of course have choices, Socrates seems to have got it right:

“The secret of change is to focus all of your energy not on fighting the old, but on building the new”

The speed of consolidation in today’s day and age, alongside the skills shortage that the UK insurance broking market faces, creates the perfect storm for employers. And the perfect opportunity for the entrepreneurial insurance professional looking to secure, not only their future, but also the ongoing relationship with their clients.

How Momentum Broker Solutions is helping?

Moving from one broking business to another is, of course an option, but still leaves you exposed to the unplanned impact of consolidation. Many have found that striking out on their own provides more freedom, opportunity and control with the benefit of a work/life balance that they never knew they could have.

In 2022, Momentum is supporting 15 new broker partners, of which 7 have been directly affected by consolidation and/or a change of management. Working alongside a partner such as Momentum takes away many of the barriers to starting a brokerage and removes many of the risks associated with starting from scratch. Momentum provides a turnkey solution for those who want to do it their way and create a valuable asset they can call their own.

There will be no end to consolidation, but there are endless possibilities for those who want to take control of their own future.

This article was originally published on LinkedIn by Alistair Body.