How combining tech and agent expertise enhances customer experience
Doomsday talk about the future of human agents is on the rise. With emerging technologies like artificial intelligence upending the industry and the rapid growth of embedded insurance driving more shoppers into non-traditional channels less reliant on agents, some predict there will be far fewer insurance agents by 2030.
At the same time, the Bureau of Labor Statistics expects the role of insurance sales agent to grow by 8% by 2032—above average for occupations. This feels closer to the mark to me. Technology hasn’t replaced agents so far and I don’t think it completely will, certainly not for more complex risks.
I believe new technology will open up opportunities for agents—and benefits for their customers—across the entire value chain. Instead of asking, “How can we make agents obsolete?,” smart agencies will be asking, “What growth can we achieve by empowering agents with the latest and best tools?,” “What types of simple risk can be automated?,” or “What types of customer or situations require an agent?”
Here are four reasons I think agents play an important role in the future of our industry:
1. Not all insurance can (or should) be automated
This is especially true of the products that matter most to us, like business insurance, personal lines, or group benefits. It’s already possible to remove the human component from products that I call ‘insurance lite’— e.g., travel insurance, phone insurance, or pet insurance – but it’s much harder to put more complex products on autopilot.
No single carrier has the appetite for every type of coverage today’s shopper may need. An experienced human agent is best equipped to shop a range of carriers to find the best value. Products with multiple pieces like business owners’ policies or umbrella policies require the help of an expert advisor who can pull them all together to best meet the shopper’s specific risks and needs.
2. Many human shoppers like human expertise
Bots may provide answers at dizzying speeds, but customers who are trying to save time in the first place don’t want to have to “check their work.”
Some customers prefer to work with a human agent who’s licensed, experienced, and qualified to offer insights into policies and rates. I’ve found that even when buyers can use technology to bind their own insurance, they hesitate to purchase because they want to ask an expert if they have the right coverage at the right price.
3. Agents are used to adopting new insurance technology
Technological advancement in insurance is nothing new. In the past years, as new technology emerges, agents have been eager to use it if it makes their work more efficient.
Depending on their roles, insurance professionals already use a variety of tech tools including:
● Raters to get quotes from multiple carriers
● Digital tools to automate insurance claims
● Management systems that streamline:
o policy writing
o customer follow-up
o document transfers
According to a 2023 survey, agents prefer to work with carriers and MGAs that use automation, citing time savings, ease of conducting business, ability to serve clients faster, and increased productivity as the top benefits.
4. New technology is changing agents’ roles—for the better
In the past, agents spent hours of their day finding leads, submitting to carriers, getting quotes, and answering basic questions. AI-powered insurance intelligence tools will change this by:
● Streamlining customer acquisition: Technology can help target the exact type of client companies are looking for at scale—and fast.
● Accelerating risk assessment and detecting fraud: AI-powered algorithms can analyze large amounts of data and can quickly identify patterns, including suspicious ones.
● Providing personalized recommendations: Predictive AI can use a customer’s specific risk factors, geographical location, life and business stages, and more to recommend current and future policies.
● Expanding access to carriers and products: With the right technology, agents can connect their customers to more products and carriers, saving time and energy on research and outreach.
As technology automates more tasks, the role agents play will continue to evolve. Instead of focusing on repetitive tasks, they’ll have the time they need to offer concierge-level customer service, provide exceptional advice, and close more sales.
Technology is here to stay, and that’s a good thing for everyone in the insurance industry. New tools and platforms will continue making agents’ jobs easier, helping companies earn more revenue, and providing better outcomes for customers.
