The purchase value for an insurance agency or brokerage firm is expected to drop in 2008 as soft market pressures and the supply and demand dynamics shift to benefit buyers, an agency consulting firm said.

Cleveland-based Marsh, Berry & Company Inc. released a 2008 state of the industry report that predicts prices for the majority of agencies and brokerage firms will begin to stabilize. The insurance market will see fewer buyers combined with an increase in the number of acquisition candidates, the report said.

The supply of agencies will increase for several reasons, according to the report. Among the reasons are:

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.