Agents want AI, but face policy and training hurdles

Insurance agents are interested in using AI despite early challenges related to their internal policies, training challenges and a surplus of options.

"AI lets a small independent agency punch way above its weight," said Josh Bagby, agency principal at Providence Insurance. Bagby works with Openly, a homeowner's insurer. 

"I don't have a CFO, a marketing department, a legal team or an analyst on staff," Bagby said. "What these tools give me is the ability to get a first pass at all of that, which used to be out of reach for an agency our size, so my team can spend their time where it actually matters, which is taking care of people."

Insurance agents are planning to increase their use of AI but many aren't using it yet, according to the Association for Independent Insurance Agents (Big I) Agents Council for Technology (ACT) tech trends report. Sixty-eight percent of the independent agencies surveyed for the report said there is strong interest in AI but only 8% report currently using it.

Matt Wielbut, co-founder and CTO of Openly, a homeowner's insurer, told Digital Insurance it's important to recognize that there is not just one agent workflow.

"The retail channel is evolving into many things at once: the small main street agency, the large call-center operation, the digital-only shop and now the AI-driven agency," Wielbut said. "No single model is the right one. The best carriers aren't picking a winner; they're building to support whatever an agency needs to be in order to succeed. That's not just good for retaining the channel; you benefit enormously from the diversity of business, policyholders and appetite that comes with it." 

Fifty-six percent of respondents to an ACT survey said their agency has no written policy or guidance on the use of AI tools by staff and about 44% said they rely on peer-to-peer training on new technology tools or systems.

"The winners in this shift won't be the agencies that use AI to automate their clients away. They'll be the ones who use it to free up time to be a better advisor," said Bagby. "I always keep a human in the loop, especially on anything that touches a client, because insurance is a trust business at the end of the day. AI just gives us more room to earn that trust."