It behooves today's insurance agents to be curious and open minded about how technology can improve what they do. (Credit: Andrii Yalanskyi/Adobe Stock)
The rapid advance of generative AI will accelerate the transformation that technology has already brought to insurance, opening up new ways for customers to find and buy coverage — and for agencies and carriers to provide the most personalized solutions.
Forrester predicts that companies in the insurance industry will increase tech expenditures 8% in 2025, and AI is expected to be a big part of that investment.
In this quickly evolving landscape, I believe insurance agents have an opportunity to serve as catalysts for change in their agencies. Because agents are on the front lines with customers, they’re in a great position to learn more about new technologies and recommend ways AI could streamline their work to deliver better experiences.
What you need to know and do as a forward-thinking agent
Have the right mindset
There are many reasons agents might resist promoting AI. It’s only natural to worry that their own roles may be at risk from new technologies. But many AI experts believe that AI will deliver the best value by enhancing rather than replacing human expertise, freeing up people to focus on solving higher level creative and strategic problems.
Another issue is that some people don’t like to delegate. Overachievers especially may want to handle all the details of their jobs themselves. Using AI can be like having a direct report who needs to be trained, explicitly instructed, and even fact-checked. But the upside could be a big boost in speed and efficiency. Learning about prompt engineering and other skills may help agents delegate in a smart way.
Take education into your own hands
My advice to agents is to embrace openness and discovery. I believe agents with a positive mindset about the future will strengthen their position in our industry, while those who fear or try to wish technology away may find it harder to compete.
Agents don’t have to use AI in their current roles to educate themselves about it. If an agency pays for continuing education, hands-on AI training could be a great investment. And of course they can take advantage of the many free or inexpensive videos and courses online.
Become a change agent
Not every organization and executive team has a well-defined strategy or approach to AI. A KPMG study found 58 percent of insurance CEOs only expect to recoup their investment in AI within three to five years. Agencies will need experts and advocates from all levels.
This is often the case with new technologies. I was VP of Automation Strategy and Agency Solutions at CNA when we developed the capability of real-time quoting. We flew field reps from around the country to train them, which empowered them to feel like change agents for their territories.
As with many fast-moving industries, it can be hard to know which companies selling AI solutions are legit. No doubt there are solutions being marketed now to agencies that aren’t good fits or won’t really do what they promise. Agents who can help their agencies separate credible companies from pretenders are invaluable.
To convince agencies about the benefits of the right tools, agents will need to use the type of storytelling that leaders like best – data-driven. Based on research, what do the numbers show?
Balance technology and human touch
Providing AI-driven chatbots to help customers get answers may turn out to be the best efficiency play, but we know from experience that many customers will still want to talk to humans before making their insurance decisions.
Embracing AI doesn’t mean neglecting the human touch. Instead, it enhances it by driving efficiency and reducing time spent on manual tasks, so that agents can focus on more informed and personalized guidance for customers.
A great opportunity for forward-thinking agents
KPMG’s study found that 34% of respondents said AI adoption among employees was highly challenging and 65% said it was somewhat challenging. An agent with the right mindset is at an advantage here!
I would advise agents to be curious and open minded about how technology can improve what they do. An agent’s job is incredibly valuable and the human touch is as important as ever. Demonstrating a curiosity to learn and a willingness to educate team members and leaders about the advantages of AI will empower agents to achieve greater success in our ever-changing industry.
Belen Tokarski is the president and chief operating officer of Mylo, an insurtech firm that enables companies and agencies to connect individuals and business owners with top-rated insurance products from 100-plus carriers, across business, auto, home, small group benefits, life and individual health.
Opinions expressed here are the author's own.
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