7 ways to utilize technology and grow your agency

Increasing competition means agents and brokers will need to leverage new ideas and innovation to succeed.

Many consumers prefer working with an agent or broker for insurance, despite direct-to-consumer platforms that offer an alternative. (Photo: fizkes/Shutterstock.com)

It’s a new era for independent insurance agents and brokers. There are challenges with the continued economic turmoil, rising premium costs and changing customer needs. They’re also facing increased competition. The estimated total number of independent insurance agencies in the U.S. grew from 36,000 in 2020 to more than 40,000 in 2022 — a 9% increase. Many independent insurance agents and brokers have needed to adapt and do things differently to maintain their success. It has been a wake-up call. They can no longer avoid disruption or change.

However, there are also exciting new opportunities and paths for independent insurance agents and brokers to grow their businesses and earn revenue by taking a fresh look at how technology can help.

In the past, technology innovation has often overlooked and underserved independent insurance agents and brokers. New solutions and advancements often focused on insurtechs selling directly to consumers and achieving better efficiencies for providers. Outside of aggregation websites and a few other tools, insurance technologies and new ideas for independent brokers and agents were limited. This is rapidly changing.

Insurtech that works for brokers & agents

Technology and insurtech companies are recognizing the values, needs and demands of independent insurance agents and brokers. Many consumers prefer working with an agent or broker for insurance, despite direct-to-consumer platforms that offer an alternative. Providers still rely on agents and brokers for revenue. This has helped to spur new solutions and programs for agents and brokers.

Modern agent and broker professionals in the industry have accelerated their technology adoption to stay competitive. They are replacing slow, manual and outdated insurance practices that have limited them and are modernizing their offerings to meet customer demands for simplicity and speed. They are also harnessing technology to improve customer relationships, be more efficient in their operations and keep costs under control.

A recent research study by Global Survey Research indicated that 100% of agents surveyed said it was important to quote, bind and deliver a policy online. Respondents said technology for agents is critical at both the front end and the back end, with 31% of agents citing updated technology as their number one pick. They wanted technology to help their businesses by adding efficiencies that allow agents to readily view information about clients, commissions, and policy renewals, and reduce manual entry.

Savvy agents and brokers are also taking advantage of new programs and opportunities. For example, Firefly uses technology and the internet to help independent insurance agents and brokers succeed by connecting them with a wider range of carriers without the burden of production requirements, along with training and other programs.

Independent insurance agents and brokers must understand that nearly all industries today are powered by technology in some way. Here are a few steps to get started:

Change is inevitable for insurance industry agents and brokers. It’s clear those who want to be most successful in the market will embrace change by leveraging evolving technologies. The Universe Study indicated that 51% of agencies were seeking more operating efficiencies to help service their customers. Nearly half (47%) of agents and brokers offered more digital solutions to their clients during the pandemic. These trends are likely to remain strong and on the uptick. For agents and brokers, the potential to benefit can be great.

Dustin Lemick is founder and CEO of BriteCo, a leading tech-driven provider of jewelry and watch insurance. Opinions expressed are the author’s.

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