Middle market insurance brokerages operate in an environment where growth is often pursued through acquisition or producer expansion. Yet in many cases, meaningful EBITDA improvement already exists within the current book of business.
This whitepaper presents a structured value creation framework based on observed patterns across founder led brokerages and private equity backed platforms. It examines how targeted improvements in commission yield, service model design, carrier economics, compensation structures, and wallet share can drive sustainable margin expansion.
When applied in combination, these levers can support EBITDA margin improvement in the range of 200 to 400 basis points, often without the need for incremental client acquisition or disruptive organizational change.
What you will learn
• How to identify and quantify commission yield leakage across the book
• How service model segmentation can improve unit economics and capacity allocation
• How to optimize carrier relationships while managing execution risk in consolidation scenarios
• How compensation design influences producer behavior and long-term profitability
• How structured wallet share expansion can create incremental revenue with limited acquisition cost
Brokerages that outperform over time tend to take a systematic approach to value creation. Rather than treating yield, service cost, and incentives as fixed, they actively manage these variables as part of the operating model.
This whitepaper provides a practical framework and illustrative economics to support those decisions.
