Trust, Tech and Transformation: A New Era for Independent Agents

• August 27, 2025

By Kasey Connors

In today’s rapidly evolving marketplace, independent insurance agencies aren’t just competing on price or product. They’re competing on efficiency, adaptability and connectivity.

According to the 2024 Agency Universe Study, a resounding 63% of agents said “identifying operating efficiencies” was the single most critical factor for success. And yet, many agencies still find themselves overwhelmed by the sheer pace of change in technology, especially when it comes to artificial intelligence (AI), integrations and workflow optimization.

But here’s the good news: You don’t have to do it all tomorrow. What you do need to do is to create a thoughtful, intentional plan for the future.

Agencies across the country are embracing technology on their own terms. Some are experimenting with AI for marketing and customer service. Others are investing in automation tools to simplify renewals, follow-ups or quoting. These aren’t massive enterprise solutions. They’re accessible, practical and manageable changes that free up time for the work that matters.

AI is moving quickly, but it’s not all hype. It’s practical. It’s here. And it’s going to touch every part of the insurance value chain.

According to “Actionable AI: A Guide for Insurance Agents” from Nationwide, 41% of independent agents said they were planning to adopt AI for their business in the next six months. Additionally, 77% reported they were considering AI to help provide counsel to clients, representing a 15-point increase from 2023.

Agents are actively exploring AI for customer service automation; policy comparisons; predictive analytics and lead scoring; and personalizing client communications.

Like any transformative technology, AI brings both potential and trepidation. The “2024 Agent-Customer Connection Study” from Agent for the Future found that 64% of agency principals are curious in AI’s potential to improve business, yet just 17% say they trust AI and 27% view AI as a threat to their business.

These stats tell an important story: if you feel cautious, you’re not alone. However, the key is not to resist change entirely, but approach it with strategy, context and guardrails.

How to Implement AI in Your Independent Insurance Agency

As you think about tech or AI for your insurance agency, don’t just look at what a tool does; consider how it connects with the rest of your systems. This is where real efficiency is won or lost. Can it sync with your agency management system (AMS)? Can it communicate with carriers through an application programming interface (API)? Will your data move easily across systems or will your team still be copying and pasting?

The future is about building a connected ecosystem that works for your agency. Start small, educate yourself, and identify just one use case that aligns with your business goals, and then build from there.

Yes, technology can be overwhelming. But it’s not an all-or-nothing game. Here are five steps to thoughtfully implement AI in your agency:

1) Start with strategy. Where do you want your agency to go? What’s not working now?

2) Audit what you already have. You may have more power than you’re using.

3) Bring your team into the conversation. They know the friction points.

4) Set clear objectives for AI and tech. Avoid the tools that don’t align with your purpose.

5) Connect with your peers. You’re not the only one figuring this out.

You don’t need to be the fastest, but you do need to move with purpose—because the agents who plan thoughtfully today will be the ones serving more clients, working smarter and growing faster tomorrow. 

Start building your strategy today. Make time to connect your systems. Talk with other agents. Explore resources from the Big “I” Agents Council for Technology (ACT), your Big “I” state association or your carrier partners.

Kasey Connors is ACT executive director.