Should an Insurance Brokerage Go Public?
Why Insurance Brokerages Should Consider Public Listing + Stock Options to Build a National Sales Force
Most insurance brokerages focus on cash commissions and overrides. But what if you could offer something far more powerful—ownership?
Going public isn’t about raising money on day one. It’s about using the tools of a public company—especially stock options—to recruit better, retain longer, and scale faster.
If you own or operate an independent insurance agency or an IMO/FMO, going public gives you something almost no one in your industry has: a structured way to offer equity to producers and partners.
This isn’t theory. It’s a proven model—adapted for your world.
Why Go Public as an Insurance Brokerage?
Equity Is the New Commission
Commissions get people to show up. Equity makes them stay.
In an industry where churn is high and loyalty is low, stock options can be a game-changer:
- Recruit top producers who want long-term upside
- Retain agents and teams with multi-year vesting incentives
- Build loyalty and brand alignment beyond comp splits
- Create a shared success model that mirrors what EXP did in real estate
By going public, you create a platform where producers don’t just earn—they own.
How It Works
- Go public via direct listing, which is simpler and less expensive than an IPO.
- Establish a 409A-compliant stock option plan to reward producers, managers, and key hires.
- Offer equity to top producers as part of onboarding or performance-based milestones.
- Build a national sales force, aligned around the idea of ownership and long-term growth.
- Position your firm as the first producer-owned insurance platform, with liquidity and upside.
Why This Works in Insurance
The insurance industry is massive, fragmented, and highly reliant on individual producers. Yet almost no one is offering equity to the people generating revenue.
In fact, most agents are:
- Switching firms every 2–3 years
- Chasing higher splits or better overrides
- Building books of business they don’t truly own
With a public listing and equity model, you can:
- Offer a true path to ownership
- Differentiate your platform in a crowded space
- Reduce turnover and grow your brand with aligned producers
This is especially relevant for:
- Life and annuity brokerages
- Final expense agencies
- Medicare sales organizations
- IMOs and FMOs looking to scale nationally
What It Costs
Going public doesn’t require millions or VC backing.
Most firms we work with start the process for about $20,000—which covers the early legal structure and setup. From there, you can use the public structure to offer stock and build your team.
You're not raising capital. You're creating a public recruiting platform.
Example Use Case: A Scalable Annuity Sales Platform
Imagine you run a 20-agent firm selling life insurance and annuities. You're doing $5M in commissions, but struggling to grow. Producers leave for higher payouts.
You go public. Offer stock options. Now you:
- Recruit 100+ new producers in 18 months
- Set up vesting structures tied to production
- Build national visibility with public reporting
- Grow from $5M to $25M in revenue in 3 years
- Trade at 1–2x revenue as a public company
Now you’ve got a $50M+ market cap—and a team that helped build it.
Who This Is For
This strategy is ideal for:
- Independent agency owners who want to scale
- FMOs/IMOs looking to recruit at national scale
- Medicare, life, and annuity sellers competing with bigger names
If you're profitable and want to build something lasting, stock options give you an edge your competitors don’t have.
What Success Looks Like
- You’re a public company with 500+ producing agents
- Your stock options vest over 3–4 years
- You’ve retained your best people and attracted top performers from other shops
- You’ve built a scalable, producer-owned platform in an industry that rarely rewards loyalty
No private company can offer this kind of structure. That’s your advantage.
Want to Explore This Further?
Our founder has done this before—taking four of his own companies public and helping dozens of others do the same. He’s advised insurance and financial services firms on going public, recruiting with equity, and scaling profitably.
If you want to know whether your firm is a good candidate, let’s talk.