You probably didn’t see this in the news, because it got covered as an accounting story. But there’s a piece of it that touches property and casualty insurance directly — and it’s worth a few minutes if you’re a P&C agent or you help manage a Florida condo or HOA master policy. The Grant Thornton CBIZ insurance deal, in brief: An accounting firm called Grant Thornton is buying CBIZ, a big company that (among other things) owns an insurance brokerage. Grant Thornton doesn’t actually want the insurance side of the business — accounting firms aren’t allowed to also sell insurance to their audit clients. So that insurance piece, worth around $400 million a year in revenue, is being spun off and handed to a private equity firm to run on its own. (Insurance Business Magazine covered the spinoff in more detail here.) That private equity firm has done this before. A couple years ago they bought an insurance company, renamed it, and grew it into a much bigger operation. They’re likely to do the same thing here. (Grant Thornton’s own announcement is here, if you want the source.)
Why the Grant Thornton CBIZ insurance deal matters to you as an agent
Private equity money has been buying up insurance agencies for years now — it’s not new. What’s new here is that there’s a fresh, well-funded buyer entering that pool. A few practical things to think about:
- If you’re planning to sell your agency someday, more buyers in the market is generally good for you — it can push prices up.
- If you have good producers, keep an eye on them. Whenever a big brokerage goes through an ownership change like this, people get restless and other companies come calling with offers. This is a good time to check in with your best people.
- If you compete for commercial accounts near CBIZ’s territory, some of their clients may be unsettled by the change and open to hearing from someone else. That includes property management companies and the community association managers they employ, who are usually the ones fielding the first questions when a client’s broker relationship shifts. Worth a phone call.
Why the Grant Thornton CBIZ insurance deal matters to you as a property manager or board member
If your association’s insurance is handled by CBIZ, or by any brokerage going through a similar sale, here’s the plain truth about the Grant Thornton CBIZ insurance deal: your coverage isn’t in danger, but your relationship with your broker might change. New ownership doesn’t change your policy overnight. What it can change is who you’re actually talking to. People leave, teams get reshuffled, and the person who used to know your building — and your master policy’s actual coverage limits — inside and out might not be there next year. Board members carry a fiduciary responsibility to know their association’s coverage is adequate, not just that the bill got paid. Community association managers are usually the ones fielding the questions when something changes upstream, so it’s worth being ready with answers before your board asks. A few things worth doing if this applies to you:
- Ask who your contact person is at your next renewal, and get it in writing.
- Don’t assume bigger means better for your building. A company busy reorganizing itself isn’t always focused on your 40-unit renewal the way a stable relationship would be.
- Use this as a chance to ask more questions than usual, not fewer. Brokers going through change are often more motivated to keep you happy.
- Get your numbers checked regardless of who owns your broker. An up-to-date replacement cost appraisal protects your building no matter what happens above your broker’s head — and it’s the same document that keeps you compliant with Florida Statute 718.111’s 36-month appraisal requirement. Underinsurance doesn’t announce itself; it just quietly shows up as a co-insurance penalty after a loss, when the carrier only pays a percentage of the claim because your insurance-to-value wasn’t accurate. Getting this right also helps at renewal — brokers negotiate better terms for boards who walk in with solid, underwriter-ready numbers, whether your carrier is a private insurer or Citizens Property Insurance Corporation. If it’s been a couple of years since your last appraisal, now’s a good time.
Bottom line
This deal — the Grant Thornton CBIZ insurance spinoff — is being talked about as an accounting story, but the insurance piece that got carved out of it is worth watching. Agents should watch it as new competition. Property managers and boards should treat it as a reminder to stay on top of their own numbers, no matter who’s running their broker’s parent company. Prestar provides Florida condo and HOA associations with the insurance appraisals that inform master policy coverage — no matter who places your policy. If you’re a property manager or board member due for a fresh number, we’re happy to help you get peace of mind before your next renewal.
