AI is becoming increasingly embedded throughout the insurance ecosystem, prompting many insurance agents to evaluate what that shift means for the future of their role. While automation is streamlining quoting, servicing and claims processes, the growing use of AI is also creating new opportunities for agents to deepen client relationships and shift their focus to meaningful, advisory work. In the small commercial market especially, where business owners often need guidance navigating complex and highly individualized risks, agents continue to play an important role as trusted risk advisors.
Here's my take on the way AI is impacting agents, expanding access to small business coverage, and transforming the agent-client relationship.
There is ongoing concern that AI could disrupt the role of insurance agents. To what extent is that concern warranted, and where is it being overstated?
AI is reshaping the role of insurance agents, but current conversations often overlook important context by equating disruption with replacement. In reality, AI is evolving the agent role in a way that expands what they can do.
By streamlining manual parts of the insurance process like quoting, binding and managing claims, AI reduces friction in insurance agents' day-to-day and takes on the repetitive work that has traditionally slowed agents down. With less of their time monopolized by menial tasks, insurance agents are able to focus on the areas where they add the most value, like assessing personalized situations and recommending the right coverage.
When human agents are able to focus on being risk advisors for clients, they're able to deliver an individualized experience and provide highly accurate coverage. That shift plays directly to agents' strengths and leads to better service and stronger outcomes for customers.
How do you see the insurance agent role changing over the years as AI becomes embedded in workflows?
As AI is progressively embedded in insurance workflows, AI agents will assist with tasks like purchasing, servicing and claims processes, while also surfacing client insights and data that help agents better understand their clients. Human agents will be able to double down on the strategic aspects of their role. This means strengthening human-agent relationships and bringing context, empathy, and human rationale to customer interactions; behaviors that no AI agent can replicate.
As this shift develops, human insurance agents will become more valuable to their customers, especially for small businesses that lack in-house risk managers or legal teams. Without in-house counsel, these customers rely on their insurance agent to understand the nuances of their operations and help guide them through important coverage decisions. With AI handling more of the routine work, agents are in a stronger position to be trusted advisors — particularly during stressful moments — bringing both human judgment and data-driven insights to the table to deliver better outcomes for their clients.
Do you believe small commercial insurance will soon become AI-native? What does it meant to be an "AI-native"?
Small commercial insurance is increasingly moving toward becoming an AI-native segment, particularly given the complexity and diversity of the SMB market. In practice, "AI-native" means embedding AI across the full insurance life-cycle to automate repetitive, administrative tasks. This shift would benefit the small commercial insurance space in particular, because small businesses are incredibly unique. (Even two restaurants serving the same food in the same region can carry different risks, so one-size-fits-all policies aren't practical.) They also often have fragmented data, making risk analysis more complex, which can make the underwriting process even lengthier. That experience isn't suitable for a small business owner who needs quick, flexible and highly accurate coverage.
AI, especially through a digital small commercial carrier, helps address these challenges by synthesizing multiple data sources and generating more precise baseline risk assessments and coverage recommendations in a way that supports agent expertise. Agents begin from a more informed position and focus their energy on advising clients, building that relationship of trust, and navigating more complex exposures. For small business owners, it leads to quicker quotes and less friction throughout the process, resulting in a more efficient and accessible insurance experience.
How do you see AI helping insurance agents better identify and serve emerging or previously difficult risk categories?
By taking on time-consuming and traditionally manual processes, AI is giving insurance agents more time to dedicate to serving more complex and difficult risk categories. AI is able to surface insights and reduce unknowns on behalf of agents by leveraging existing data on policy offerings, risk scenarios and claims. Agents are no longer starting from scratch when evaluating new professions, businesses with limited history or niche exposure. Instead, they're equipped with a clearer picture upfront, allowing them to focus their expertise on advising clients and navigating nuanced exposures. AI is ultimately putting agents in a position to serve segments of the market that were once highly complex and difficult to protect.
How do you see the SMB insurance market changing as new AI capabilities are introduced?
The SMB insurance market is expanding as new AI capabilities are introduced, largely because AI reduces barriers for small business owners as they seek insurance coverage. Many customers are using AI as a resource to educate themselves on risks and policies, and to identify which carriers are a good fit. When they take that foundation of knowledge to insurance agents, the two parties can cover more ground and identify a coverage plan much more efficiently.
Jack Ramsey is Vice President of Agent Channel at ERGO NEXT Insurance. Opinions expressed here are the author's own.
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