“It’s not news to brokers that companies’ insurance needs change after a merger or an acquisition.” But with dealmaking surging again in 2025, a few might be caught off guard by a striking trend.
Roughly a third (31%) of companies change their insurance brokers or carriers after a deal closes, according to a new M&A survey by Travelers. As companies reassess their operations, coverage needs, and strategic risks, business leaders find that their existing insurance relationships don’t always align with their evolving risk profile.
Joann Balous (pictured), vice president of sales and marketing for national accounts at Travelers, emphasized that the churn isn’t just about dissatisfaction: it’s a byproduct of shifting dynamics, ownership, and strategy.
“One surprising and somewhat concerning statistic was that 31% of companies changed either their broker or carrier post-transaction,” Balous told Insurance Business.
“We, as carriers, and our broker partners, aim to retain clients, so seeing nearly a third switch after a deal is unsettling.”
There’s one piece of good news, however. Travelers found that most (95%) business leaders they surveyed said their organizations’ risk management practices became stronger as a result of a transaction.
“Going through the process forced them to evaluate and strengthen their risk posture,” Balous said. “Thirty-two percent of companies ended up changing their insurance coverage, either modifying or adding new policies, because of the merger or acquisition.”
For many firms, she explained, these transactions become a catalyst for reassessment. The average deal size in 2024 hit $792 million, according to Travelers’ data. With deals of that magnitude, companies are under pressure to scrutinize every function, including insurance.
“Often, it’s the involvement of a new financial buyer (that drives the switch),” said Balous. “It’s the perfect opportunity to look at not only your broker and the services they’re providing, but you’re your carrier. Are they the right fit?”
When coverage needs to shift, especially if the deal brings a new financial buyer or requires moving to a different program structure, companies start shopping. The transition period is especially turbulent when companies shift from guaranteed cost plans to more complex models like loss-sensitive programs or unbundled structures.
There’s another shift occurring in the wake of M&A: staffing changes in the risk management function. According to the Travelers survey, 23% of companies hired a new risk manager post-transaction.
Whether the previous manager didn’t survive the transition, or the company’s size simply demanded a full-time hire, it marked a significant shift.
“They just grew to the size where they needed somebody managing that risk and developing the relationship with the broker and carrier,” Balous said.
That kind of institutional shift can tilt the scales in favor of a broker switch. Smaller and mid-sized companies are particularly vulnerable. Unlike large corporates, many don’t have an in-house risk manager, which means they rely more on their broker or agent.
One of the more frustrating realities for insurance professionals is that companies often bring in brokers and carriers far too late in the M&A process.
Balous recommended that brokers get involved in the due diligence process because if brokers are informed early enough, they can help identify risks, assess changes in exposure, and advise on how to maintain continuity.
“Bring that underwriter in so that they can evaluate the new operations,” Balous said. “Are they in different geographic locations? Are you bringing in a totally new process or a new product?”
When brokers are left out of those conversations, she added, key risks can go unaddressed, which can later come back to haunt both the client and insurer.
A company’s risk profile can alter dramatically after a major deal. For brokers hoping to survive this shift, communication is everything, according to Balous. That means early involvement in due diligence, honest conversations about risk, and a willingness to adapt to new coverage needs.
Still, it’s not always up to the broker. In some cases, private equity firms dictate insurance arrangements. “Some brokers that have exclusive relationships with PE firms, and it changes no matter what,” Balous said.
Despite this, brokers can play a role in minimizing disruption for their clients. The ones who stick around are the ones who act as trusted consultants, not just salespeople.
“If brokers want to avoid being part of that churn, they need to position themselves as trusted advisors and be proactive,” Balous said. “Even if the M&A deal is confidential, staying as informed as possible and facilitating conversations with carriers early in the process can make a big difference.”
