For the past several years, a significant number of individualsand new-breed companies have emphatically stated that independentagents and brokers are dead.

They don't serve the needs of today's consumers. They are behindthe times from a technology standpoint. They are difficult to dealwith. And a good number of InsurTech startups are staking their futuresuccess on displacing agents and brokers. At SMA, wedo not believe this.

Related: Independent insurance agents have an edge in thedigital market

Critical role

We believe that independent agents and brokers have a critical and,in many cases, an unmatched role in the insurance ecosystem.It's one thing to make this statement, but it's another to providesupport for the statement.

SMA recently did a study in this area. In the ensuingreport, Data, Business Intelligence, and Analytics inInsurance – Agent View, there surfaced some compelling detailsthat point to the independent distribution channel taking action towrangle their own destiny in a new direction using data, businessintelligence and analytics.   

In prior blogs, I have asserted that data and analytics isactually one word — dataandanalytics! Insurers are on afast-paced track to bring more and more data and analytics intotheir organizations. In fact, SMA 2017 survey results reveal thatdata and analytics was the number two strategic initiative forinsurers of all sizes — only three percentage points lowerthan the number one initiative of customer experience.

For many readers, this might be a case of "OK, tell me somethingI don't already know." However, there is a good probability thatmany believe that data, business intelligence (BI) and analyticsinitiatives are the domain of insurers only — that agentsand brokers are not focused on these types ofinitiatives. 

SMA survey results disprove this and show that 79% of agents areinvesting in BI for reporting, 44% in dashboards and scorecards,and 40% in analytics tools. CRM technology is a top technology for agents ofall sizes. Large agents — those over $10 million inpremium — are additionally focused on customersegmentation, customer lifetime value, campaign analysis andchannel performance. This sounds suspiciously like an insurancecompany!

Not all agents are on board

We are in a world of data-driven decisioning — thisisn't going to change. Many agents and brokers totally understandthis and are responding. However, not all agents are on board.

SMA survey results indicate that smaller agents are trailing insome initiatives. The real hitch is that the pace of change in theinsurance industry is exponentially increasing. To successfullycompete, agents and brokers need to move more quickly to grow theirdata and analytics competencies and technology adoption.

Insurers can be true partners in these endeavors by doing suchthings as facilitating data and analytics technology integrationwith agency-based technology and assuring that data can beexchanged seamlessly.

New insights are vital

There's no doubt that the insurance industry is in the midst ofunprecedented transformation. Those agents and brokers who arebringing data, business intelligence and analytics tools into theirorganizations to gain new insights about the changing risklandscape and customer preferences and needs are well on their wayto maintaining their vital role in the industry.

I, for one, am looking forward to the day when no one is talkingabout the death of the independent agent and broker, but rathertalking about the high worth they bring to customers who valuepersonal advice, risk management and protection!

Related: 3 ways for insurance agents to use data anlytics todrive growth

Karen Pauli is a principal atBoston-based SMA,independent advisors to insurers and InsurTech solutionproviders. Email her at [email protected]. Thisarticle first appeared on StrategyMeetsAction.com and isreprinted here with theirpermission. Opinions expressed are theauthor's own.