A recent survey conducted by Vertafore found that 77 percent ofinsurance agencies directly attribute their fiscal growth during2012-2013 to the use of technology. The survey taken at the recentNetVU (Network of Vertafore Users) conference and was designed toidentify the sentiment among insurance agents using technology.

Key findings include:

• Agencies that were once considered small have increased theirrevenue size in recent years. As a result, they are now categorizedas medium-sized agencies.
• Smaller agencies say mobile technology has been beneficial, anddata shows smaller agencies have embraced it more than largeragencies.

“The results of our survey reflect the positive impact thattechnology is having on the way agents and brokers prospect,conduct, and retain business,” says Bruce Winterburn, vicepresident of industry relations for Vertafore. “As new regulationsemerge and business processes change, agents have to adapt andevolve to meet the new demands of their clients.”

The survey showed medium-sized firms (26 to 75 employees) grewthe most in 2012 with 28 percent experiencing between 10 and 20percent growth, while 64 percent grew between 2 and 10 percent.

Other agency segments also witnessed growth:

• 23 percent of large agencies (more than 76 employees) havegrown 10 to 20 percent and 56 percent have grown 2 to 10percent
• 17 percent of small agencies (1 to 25 employees) have grown 10to 20 percent and 72 percent have grown 2 to 10 percent

Of those medium-sized firms surveyed, nearly a quarter (22percent) outgrew the small agency segment since 2010 moving intothe medium-sized agency segment by 2012. These figures complementthe Big “I” 2012 Agency Universe Study which revealed that since2010, the percentage of small agencies has decreased from 32percent to 28 percent while the percentage of medium-small agencieshas increased from 42 percent to 46 percent.

“As a result of their technology investments, many smalleragencies have had an opportunity to add and manage businesses thatthey did not previously have the capacity to support,” saysWinterburn. “As agencies of all sizes take advantage of toolsavailable to them, new revenue and growth opportunities haveemerged.”

Future of Mobile Technology

Mobile features and functionality continue to play an importantrole for insurance agencies across the country. The NetVU surveyshowed the largest number of agencies (47 percent), feel thatmobile has helped them grow and evolve alongside their clients; 27percent say it has not and 25 percent are unsure. Interestingly,however an equal amount of large agencies feel that mobile has beena help (40 percent) and a hindrance (40 percent).

“The dichotomy in the large agency sentiment may likely beattributed to the lack of mobile access and training currentlyavailable for agents,” says Winterburn. “We see the adoption ofmobile usage, by agencies of all sizes, as an opportunity toparticipate in the technology shift occurring right now within theinsurance industry.”

The survey of 157 insurance professionals was conductedin-person by Vertafore at the 2013 NetVU Conference on March 7-8.The survey includes responses from both owners and employees ofU.S.-based insurance agencies.