While a growing number of independent agencies are embracing technology as a key component of their success, some are still not tech-savvy enough to capitalize on the opportunities already at their disposal, and many continue to see the Web as a threat because of how carriers use the Internet, a pair of leading industry observers say.

Chad Mitchell, a senior analyst with Forrester, said that the agents he has spoken with clearly see the Web isn't going away, but many continue to view the Internet as a threat because carriers haven't developed clear strategies.

Mr. Mitchell points to service issues as one example. If customers bind a policy online and receive a discount for not using an agent but want follow-up service, they are encouraged to call an 800 number. However, the majority–Mr. Mitchell believes probably 80 percent or more–pick up the phone and want to talk with a local agent.

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