How Digital Insurance Trends Can Help You Be a Successful Independent Insurance Agent
Written by the Agent Clearcover Team | October 26th, 2021
Recent technology trends in the insurance industry point to a digital transformation taking place. Insurtech startups continue to gain influence and market share, while independent insurance agencies and brokers are embracing technological innovations more than ever before.
But independent agents don’t have to fear that tech companies, tools, and digital insurance trends will take over their role in the insurance industry. Insurtech companies and independent agents make up a partnership that benefits both parties—and insurance customers.
Clearcover is your auto insurtech partner, and we surveyed 475 independent agents and brokers* to provide a look into how recent tech innovations and digital insurance trends can help independent agents be successful.
Why independent agents should embrace technology trends in the insurance industry (instead of fearing them)
First, a startling statistic: Our research revealed that 74% of independent agents fear being replaced by technology. That’s a pretty significant number.
At the same time, 98% of agents we polled said the rise of digital tools has actually made their job easier. And we also found that insurance customer expectations have changed significantly since the beginning of the pandemic, with 88% of agents surveyed agreeing that customers now expect insurance processes to be automated.
Still, the majority of agents state that their customers want to meet in-person when purchasing insurance—and that only 2% of customers prefer not to work with an insurance agent at any point in their insurance-purchasing process.
But 78% of agents say that without the addition of digital tools, they’re at risk of completely losing their business within the next 5 years. That’s a huge incentive to embrace the transition to new insurance technology.
It’s clear that, even as technology innovation in the insurance industry moves quickly, the need for personal interaction with agents in the insurance purchasing process isn’t going anywhere anytime soon.
And agents who choose to embrace digital innovation can meet the changing needs and expectations of the marketplace to provide better insurance solutions for clients.
How insurtech companies and independent agents benefit one another
It’s not just insurance customers who expect better digital experiences from their insurance provider. An increasing number of agents are expecting more streamlined digital experiences for themselves as well.
And that’s where agent-insurtech partnerships come in.
Overall, the independent agents we surveyed view insurtech companies positively, with 84% believing insurtech companies are driving good innovations into the insurance industry.
We found that the majority of agents (88%) agree that insurtech companies will replace major carriers as lead consumer brands, with 80% of agents agreeing that tech innovations will likely do more to improve the insurance industry than disrupt it.
We also found that most agents are confident that their job will always be necessary to the insurance industry:
How confident are you that independent agents will always be necessary and useful within the insurance industry?
Confident: 61%
Somewhat confident: 37%
Not confident: 2%
Even though there’s some hesitancy and fear of being replaced by technology, the agents we surveyed believe that their role will be necessary and useful in the industry going forward.
We agree. In fact, we know independent agents are necessary.
As an agent, you have the experience to explain coverages, evaluate holistic insurance needs, and offer the best recommendations for each individual client.
You have the necessary relationship with your clients to drive sales based on trust. And you also offer crucial insight to insurtech companies like us. Thanks to your insights, we’re able to constantly iterate our insurance product and create new technologies that better meet your customers’ needs and expectations (and yours as an agent—but more on that below).
Overall, insurtech companies and independent agents directly benefit one another: Insurtechs develop better insurance experiences, agents offer those better experiences to insurance customers, agents offer critical feedback to insurtech companies, and insurtech companies use that feedback to continue to develop even better insurance experiences. And the cycle continues.
It’s a winning partnership for agents, customers, and insurance companies.
How successful independent insurance agents have embraced digital insurance trends
Although 98% of agents say the rise of digital tools has made their job easier, 50% of agents feel they’re struggling to keep up with the growth of technology.
In fact, 67% of agents surveyed believe independent agents in general are slow to adopt new technologies. (Remember: The majority of agents agree that customers expect insurance processes to be automated.) We know that the key to being a successful independent insurance agent goes beyond simply embracing new technologies, but it’s clear that agents who work to meet the increased demand for digital technologies have a competitive edge.
Technologies valued by independent insurance agents
The majority (87%) of agents we polled plan on investing in more digital tools within the next year, with only 2% not planning to invest in more digital tools at all.
Digital Technologies Independent Agents Have Adopted
Cloud storage services: 39%
Digitized records: 38%
Agency Management Systems (AMS): 36%
Managed IT services: 36%
Consumer management platforms: 36%
Data analytics software: 35%
Chatbots: 31%
Mobile electronic devices (iPads, laptops): 31%
Voice over Internet Protocol (VoIP): 27%
User acquisition technologies: 24%
Robotic process automation: 22%
AR/VR/MR: 16%
But even though most agents are planning to invest in more digital tools, 78% of agents assume digital tools are too expensive. But at Clearcover, we also think of our independent agent partners as the end-users for our team (in addition to our customers), so the technology and processes that we create intentionally consider the needs and wants of both insurance customers and agents.
When you partner with an insurtech that provides a streamlined, digital experience, you can take advantage of excellent digital tools without a significant added cost.
And even better: Agents who partner with Clearcover have a say in helping shape what our next priorities are, what new technologies we come up with, and what digital insurance trends we tackle next. (We even have specific teams dedicated to making sure agents have an excellent Clearcover experience.) Our agent partners truly get a voice in improving the insurance industry alongside us.
Grow your agency with Clearcover, the auto insurtech partner that puts customers in control
With a quick and easy binding experience—and one of the fastest claims processing times in the auto insurance industry—Clearcover provides auto policies that make both agents and customers happy. (Not to mention, we’ll offer your clients the best digital experience in the auto insurance industry.)
Insurtechs (like Clearcover!) and independent agents can work to meet the needs of insurance customers and better serve insurance clients together.
To learn more, request an appointment with Clearcover today, or log into the agent portal to continue quoting.
*We polled 475 independent insurance agents and brokers in August 2021 with 475 total respondents. The survey was conducted at 95% confidence, +/- 4% margin of error.
