Brooklyn’s Independent Insurance Agencies Fight Back: How Local Firms Are Thriving Despite Corporate Mega-Mergers

The insurance landscape in Brooklyn is experiencing seismic shifts as 2024 marked another active year in insurance brokerage M&A transactions, with 633 announced deals through November, continuing a trend that shows no signs of slowing. MarshBerry expects the level of activity to be similar to 2024, with private capital-backed buyers driving a high level of activity well into 2026. Yet amid this consolidation frenzy, Brooklyn’s independent insurance agencies are not only surviving but finding innovative ways to maintain their competitive edge.

The Consolidation Wave Hits Brooklyn

The numbers paint a stark picture of industry transformation. There has been a notable trend toward consolidation in the industry, with larger brokers acquiring smaller firms to expand their market presence, diversify their service offerings, and achieve economies of scale. Firms with revenue between $500K to $10 million are starting to feel strategic pressure to grow, which will drive even further consolidation.

This consolidation pressure is particularly acute in specialty markets. The continued consolidation of the specialty marketplace is driving an ongoing lack of seller supply. In 2009 there were less than five specialty firms with $1 billion or more in property & casualty premium. In 2024, that number exploded to at least 28 firms over this threshold.

Independent Agencies’ Strategic Response

Despite these challenges, independent agencies placed 87.2% of commercial lines premiums in 2024, nearly level with 87.3% in 2023. In personal lines, their share rose to 39%, up from 38.7% the previous year. This resilience stems from several key competitive advantages that independent agencies are leveraging more effectively than ever.

Unlike traditional insurance companies that offer only their own policies, independent insurance agents work with multiple carriers to find the best coverage at the most competitive rates. This flexibility has become increasingly valuable as “the hardest market cycle in a generation” sees independent agencies navigating skyrocketing premiums, carrier changes, and anxious clients.

Technology as a Competitive Differentiator

Smart independent agencies are embracing technology to compete with larger firms. Nearly one in three survey takers said their agency has added tech tools in response to the hard market, focusing on streamlined workflows and automated client experiences. Industry knowledge databases give agencies access to up-to-date insurance information from carriers and top publications, helping them stay competitive when carriers frequently change their appetites.

The Power of Personalized Service

What truly sets independent agencies apart is their commitment to personalized service. “In a complicated and fast-evolving market, the personalization, choices and education that independent agents provide are crucial, proving once again their role as key partners in the insurance distribution channel”, according to industry leaders.

This personalized approach resonates strongly with Brooklyn consumers who value local expertise and relationships. Working with an independent agency offers several key advantages: Access to multiple top-rated insurance carriers, ensuring broader coverage options and competitive rates, while understanding the unique insurance needs of Brooklyn residents and businesses.

A Local Success Story: Max J. Pollack & Sons Insurance

A prime example of how independent agencies maintain their competitive advantage is Insurance Company Brooklyn stalwart Max J. Pollack & Sons Insurance. The company is a family business that has been serving the New York Metropolitan community for over 75 years, having acquired its first insurance broker’s license in 1936, originally operating from a home in Bensonhurst, Brooklyn.

Today, they serve clients throughout the entire greater New York City area from their office in Park Slope, Brooklyn. The company’s longevity demonstrates how independent agencies can thrive by focusing on core values. They believe that the ongoing success of their company is due to a combination of extensive insurance industry knowledge, coupled with something you don’t see too often in today’s world — old-fashioned, personalized attention to customers’ needs.

Strategic Partnerships and Networks

Independent agencies are also leveraging strategic partnerships to compete with larger firms. These partnerships support independent agents with critical access to insurance carriers and market access to help expand their books of business, and often provide discounts and savings to other business tools and software solutions as well. Alliances and insurance aggregators provide agents with the advantage of combining the premiums their books generate with other agencies to gain access to privileges and benefits often only awarded to the largest agencies in the industry.

The Road Ahead

Looking forward, the outlook for independent agencies remains cautiously optimistic. Market indicators offer a more encouraging, increasingly active expectation for insurance M&A in 2025, but this also means continued pressure from consolidation.

However, independent agencies that focus on their core strengths—personalized service, local market expertise, technological efficiency, and strategic partnerships—are well-positioned to not just survive but thrive. Independent agency professionals are passionate about what they do and the clients they serve. They are also feeling the pressures of the current market while finding creative ways through.

For Brooklyn consumers, this competitive landscape ultimately benefits them through more choices, better service, and agencies that truly understand their local needs. As the insurance industry continues to evolve, the independent agencies that embrace change while maintaining their personal touch will continue to play a vital role in protecting what matters most to their communities.