Limited integration caps agencies' AI potential: Augie

• Key insight: Agencies report spending too much time navigating disconnected workflows, adding 10 to 30 minutes of work.
• Supporting data: 64% of carriers say disconnected systems create significant or severe inefficiencies for agencies.

AI adoption is accelerating in the insurance industry, but a study from the Augie Group, a volunteer-led insurance tech exchange, finds that there are still significant gaps in workflow integration.
According to the Augie Connectivity Survey, which surveyed over 600 insurance professionals, 79% of agencies report using AI in their workflows, most commonly in customer communications, marketing, policy review and document processing. Sixty percent of agency respondents, however, identify limited system integration as the most significant operational challenge, and 64% of carriers report that disconnected systems create significant or severe inefficiencies for agencies.

"The industry doesn't have a shortage of innovation. It has a shortage of integration," said Cal Durland, executive director of Augie. "Agencies told us they're still spending too much time navigating disconnected workflows and re-entering information instead of serving customers. Those aren't new problems, but they're becoming more urgent as AI becomes part of everyday operations. Before we can fully realize AI's potential, we have to solve the workflow challenges that have frustrated agencies for years."

Half of all respondents say that quoting remains the most manual process in their day-to-day workflows, followed by submissions at 39%, renewals at 36% and endorsements at 29%. According to the report, 60% of agencies report re-entering information into several systems across carriers. Agents must often also manually retrieve documentation themselves. Respondents also report adding 10 to 30 minutes of work to routine policy transactions because of disconnected workflow systems.

"The next breakthrough in insurance technology won't come from one new technology tool. It'll

come from removing the friction that prevents great technology from working together. That means stronger data standards, better governance and closer collaboration among agencies, carriers and solution providers," said Keith Savino, Augie chair. "Those aren't side conversations anymore; they're the foundation for what's next. Standards don't slow innovation, but make innovation scalable."

Augie offers a few suggestions on how insurance professionals can approach improving connectivity, which requires greater communication between agencies, carriers and vendors. 

According to the report, carrier field representative meetings are a great starting point. Agencies should prioritize sharing the everyday challenges that employees experience and discussing any issues with carrier technology or possible improvements. Agencies also have an opportunity to document and quantify the time employees spend on manual, redundant processes or navigating multiple systems, which would help carriers better understand areas for improvement.