What's Happening?
Hagerty International has acquired the renewal rights of Gilbart-Smith Associates, a specialist classic car insurer. This acquisition allows Hagerty to become the appointed broker for existing policy renewals of Gilbart-Smith Associates. The decision to sell was influenced by increasing regulatory requirements and consumer duty obligations, which have made it challenging for smaller independent companies to operate. Bertie and Emma-Jane Gilbart-Smith, partners at the firm, will serve as consultants for Hagerty over the next year. The acquisition is effective from September 1, 2025.
Why It's Important?
This acquisition highlights the growing impact of regulatory pressures on smaller insurance firms, prompting them to consolidate with larger entities. For Hagerty International, this move expands its client base and strengthens its position in the classic car insurance market. Clients of Gilbart-Smith Associates are expected to benefit from Hagerty's innovative products and high service levels. The transaction underscores a broader trend of consolidation in the insurance industry, driven by regulatory changes and the need for economies of scale.
What's Next?
As Hagerty integrates the new clients, it will focus on maintaining service quality and offering unique membership experiences. The industry may see further consolidation as smaller firms continue to face regulatory challenges. Stakeholders will be watching how Hagerty manages the transition and whether it can leverage this acquisition to enhance its market position.
