PE Perspective on Insurance Brokers - [Business Breakdowns, EP.225]

In this episode of Business Breakdowns, Matt Reustle interviews Aaron Cohen, head of financial services and technology at GTCR, about the insurance brokerage industry. Cohen discusses GTCR's "Leader Strategy," emphasizing the importance of backing proven CEOs and management teams. He highlights the industry's attractive fundamentals, including its less cyclical nature, asset-light business model, and strong cash flow. The conversation covers the evolution of insurance brokerage, the increasing influence of brokers over carriers, the role of specialization, and the impact of technology. Cohen also addresses the competitive landscape, the importance of organic growth versus M&A, and the factors driving valuations in the industry. He shares insights from GTCR's experience with Assured Partners, a business they built from the ground up, and touches on potential risks and regulatory considerations within the insurance brokerage space.