The majority of insurance agencies (77 percent) directly attribute their fiscal growth during 2012-2013 to the use of technology, according to a recent survey conducted by Vertafore.
The survey also found that medium-sized firms (26-75 employees) grew the most in 2012; 28 percent experienced nearly 10-20 percent growth, while 64 percent grew approximately 2-10 percent.
Also, smaller agencies say mobile technology has been beneficial, and data shows they have embraced it more than larger agencies, which could be why agencies that were once considered small have increased their revenue size in recent years. As a result, several have moved up in size classification.
“The results of our survey reflect the positive impact that technology is having on the way agents and brokers prospect, conduct and retain business,” said Bruce Winterburn, VP of industry relations for Vertafore. “As new regulations emerge and business processes change, agents have to adapt and evolve to meet the new demands of their clients.”
The figures indicating growth among small agencies in this survey complement the Big I’s 2012 “Agency Universe Study,” which revealed that since 2010, the percentage of small agencies has decreased from 32 percent to 28 percent while the percentage of medium-small agencies has increased from 42 percent to 46 percent.
“As a result of their technology investments, many smaller agencies have had an opportunity to add and manage businesses that they did not previously have the capacity to support,” Winterburn said. “As agencies of all sizes take advantage of tools available to them, new revenue and growth opportunities have emerged.”
Overall, 47 percent said mobile has helped them grow and evolve alongside their clients; 27 percent said t has not, and 25 percent are unsure. Interestingly, among large agencies, just as many respondents said mobile has been a hindrance (40 percent) as those who felt it was helpful (40 percent).
“The dichotomy in the large agency sentiment may likely be attributed to the lack of mobile access and training currently available for agents,” Winterburn said.
