Threats remain

There are, however, threats that could undermine agencies. Here are four of them:

People. In the past two years when I've asked agency leaders, "What's your greatest challenge?" the answer almost always has been: "People: Can't find them, can't keep them." To serve people with people, an agency must have a pipeline of producers and other professionals. Compounding the talent challenge has been the "Great Resignation" and so-called quiet quitting. The best agencies recognize that they face not only a people challenge, but they also need to leverage technology.
Culture. Once agencies find people, they've got to provide an environment that works. Like many businesses, agencies struggle with this. But those active in creating and managing a workplace culture and blending technology in as a tool struggle less. Agencies that think differently about people and culture challenges are also drawing people from outside the industry, crossing generational lines, attracting multiple races and ethnicities, and creating inclusive work environments that enable everyone to thrive.
Consumers. Will independent agencies be able to keep up with rapid changes in consumer preferences? Agencies typically are small to medium-sized businesses, and some lack scale and technology that could help leverage digital capabilities to adjust to the changing consumer environment. Ultimately, their challenge is to solve for customers' needs not just at time of sale but for all the changes that families, individuals and businesses face.
Efficiency. Agencies need to race to become more efficient. But some are still walking to get there. Being efficient means leveraging technology to handle high-frequency, low-complexity work. Efficient agencies identify challenges and find technology to solve problems and create opportunity. Being efficient frees the agency to deploy people in high-value aspects of work, such as prospecting and selling.

Many of today's independent agencies are thriving. What's more, they're confident that they'll be able to navigate the future. They have a strong sense of where the market and their agency are headed. They are well established in the "blocking and tackling" of finding new customers and understanding those customers and their journeys. They recognize where and how their value proposition resonates. They realize the challenges involved in thinking ahead about talent, working on their culture, and leveraging technology.

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Shaping the independent agent channel for the future

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