Insurance mergers and acquisitions saw renewed momentum in 2025, but Deloitte predicts 2026 will be more balanced, with insurers focusing on targeted deals more than a broad resurgence.

"Many insurers have entered the year with stronger balance sheets and more room to maneuver, but also with a more measured view of risk, growth, and integration," Deloitte's 2026 outlook says. "Instead of a broad-based resurgence in dealmaking, M&A activity may consist of targeted moves, evolving deal structures, and a sharper focus on capital efficiency and long-term value. The question for industry participants is less about whether opportunities will emerge, and more about which organizations are positioned to pursue them— and how prepared they are to act."

In its 2026 insurance M&A outlook, Deloitte says it expects insurers to be more intentional this year, pursuing M&A for profitable growth and portfolio repositioning, and favoring light-asset transactions and divestitures. Several years of portfolio rebalancing and capital discipline have left some insurance organizations with more room to deploy capital, which could make mergers and acquisitions regain appeal as a strategy to reposition those portfolios, fill capacity gaps or sharpen strategies. Because of this, Deloitte expects some insurers may choose to shed businesses that are consuming disproportionate capital or require sustained investment.

Private capital in E&S lines is expected to remain active in 2026. Deloitte's outlook explains: "Private capital is expected to stay active in specialty P&C, excess and surplus, and managing general agent (MGA) platforms in 2026. These segments continue to attract interest because they offer underwriting flexibility and fee-based economics that can be scaled without heavy balance sheet commitments. Even as competition intensifies, they may remain appealing to investors seeking growth tied closely to underwriting performance."

That interest is likely to come alongside greater selectivity, though, and valuation differences could potentially widen between platforms with a clear underwriting edge or more favorable market conditions.

When it comes to large brokers, Deloitte predicts ongoing scaling may shift toward integration and operational refinement as acquirers work to simplify what they already own in order to streamline processes and improve efficiency. Deloitte says this brokerage shift may result in more tuck-in acquisitions designed to add depth in specific industries or regions.

Artificial intelligence is likely to have a hand in M&A activity in 2026, as well, with Deloitte predicting insurers will become more deliberate with their use of AI for things like direct support for underwriting, pricing and portfolio management.
In its outlook, Deloitte cites recent examples of AI integration and how it has influenced insurers to sharpen their focus on the use of this technology.

"On February 9, 2026, news of Insurify's integration with ChatGPT sent several major brokerage stocks tumbling. The impact felt across the insurance stock prices reflects the reality that AI is no longer a distant innovation but a potential disruptor inside of distribution and underwriting," the outlook states. "CCC Intelligent Solutions' acquisition of EvolutionIQ, which closed at the beginning of 2025, illustrates this shift in practice.10 The deal highlights how insurers and insurance-adjacent platforms are acquiring applied AI to enhance claims decisioning and outcomes, rather than pursuing technology for its own sake."

Deloitte expects talent to remain central to these transactions, with a premium placed on teams that combine technological savvy with solid insurance judgment.

A full copy of Deloitte's 2026 Insurance M&A Outlook can be found here.

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