A recent survey conducted by Vertafore found that 77 percent of insurance agencies directly attribute their fiscal growth during 2012-2013 to the use of technology. The survey taken at the recent NetVU (Network of Vertafore Users) conference and was designed to identify the sentiment among insurance agents using technology.

Key findings include:

Agencies that were once considered small have increased their revenue size in recent years. As a result, they are now categorized as medium-sized agencies.
Smaller agencies say mobile technology has been beneficial, and data shows smaller agencies have embraced it more than larger agencies.

“The results of our survey reflect the positive impact that technology is having on the way agents and brokers prospect, conduct, and retain business,” says Bruce Winterburn, vice president of industry relations for Vertafore. “As new regulations emerge and business processes change, agents have to adapt and evolve to meet the new demands of their clients.”

The survey showed medium-sized firms (26 to 75 employees) grew the most in 2012 with 28 percent experiencing between 10 and 20 percent 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) have grown 10 to 20 percent and 56 percent have grown 2 to 10 percent
17 percent of small agencies (1 to 25 employees) have grown 10 to 20 percent and 72 percent have grown 2 to 10 percent

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

“As a result of their technology investments, many smaller agencies have had an opportunity to add and manage businesses that they did not previously have the capacity to support,” says Winterburn. “As agencies of all sizes take advantage of tools available to them, new revenue and growth opportunities have emerged.”

Future of Mobile Technology

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

“The dichotomy in the large agency sentiment may likely be attributed to the lack of mobile access and training currently available for agents,” says Winterburn. “We see the adoption of mobile usage, by agencies of all sizes, as an opportunity to participate in the technology shift occurring right now within the insurance industry.”

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

Special Reports /

Poll: Most Insurance Agencies Attribute Fiscal Growth to Tech Advancements

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