I’ll be honest—I’m more excited about the future of the independent agent channel than I’ve ever been in my 30 years in the insurance industry.

Yes, challenges continue to arise with rapidly changing technologies, the ever-evolving needs of consumers and pricing pressures from direct carriers. But we also have incredible opportunities to compete in the current marketplace and define our future together as carriers and agency partners.

Heading into 2017, here’s where the industry stands—and how we can work together to leverage the changing landscape and our unique strengths.

Top 4 Changes

Unprecedented investment. Funding for insurance tech startups topped $1 billion in the first half of 2016, and 63% of these investments took place in the U.S., according to CB Insights. With more than 80 deals in the first two quarters, 2016 is on pace to top 2015′s total deal volume by more than 42%.

Technological advances. The rise of mobile, big data and the Internet of Things affects nearly every industry. The ubiquity of smartphones has forever changed the way consumers shop, buy and do business. When houses and cars become “smart,” it impacts risks and coverages. Cars are safer to drive—even trending toward autonomous—but cost much more to repair because of the pricey, sensitive technology inside.

The millennial impact. Millennials are getting married, buying homes and starting families—and as a result, their financial needs and risks are becoming more complex. Perhaps more than any other segment, Generation Y appreciates the ease, choice and advice that independent agents provide. Not to mention, millennials are and will continue to be the largest segment of the population until mid-century—and they have a large influence on consumers from other generations, many of whom now bank online, stream movies and more.

Changing customer behavior. Increasingly, consumers are subscribing to services rather than purchasing products, which changes how they view risks and coverages. In addition, sharing economy services like Uber may lead to an overall decrease in car ownership, even as they create new gaps in coverage that carriers and agents must address.

5 Ways to Respond

In general, the independent agent channel has held its own against other distribution channels. In a recent internal research study, Safeco Insurance found that the distribution of auto insurance by channel was virtually unchanged from 2010 to 2015. While most agencies aren’t growing at all, some are growing exponentially.

There’s no hidden formula for what they’re doing that other agencies can’t also do in some way. But there are four things they all seem to have in common—strategies every independent agent can adopt to plan for growth in the years ahead:

Find ways to operate more efficiently. Customers respond to price, and that’s not likely to change. Agents need to manage expenses so we can collectively drive lower prices in the marketplace and narrow the price gap. That’s not to say we’ll be as cheap because there is added value by working with a local, trusted adviser.

Work less in your business and more on your business. The agency principals who are thriving embrace their leadership roles. Rather than doing sales or service work, they are proactive about their agency’s growth. They’re asking, “What skills does my agency need?” “What technologies will make my agency more efficient or provide me with meaningful data?”

Invest in what’s proven to drive growth. Spend less on brand marketing, where return on investment is difficult to track, and move more toward relationship marketing. Flourishing agencies take a deliberate approach to cultivating relationships. Some even hire marketing staff to manage the effort. They’re also hiring new producers faster than their peers, which undeniably drives growth.

Focus on where you really add value. Customers still value ease, choice and advice—those things just look different than it did 10 years ago. Whether it’s e-signing a policy or using a smartphone to file a claim, many customers want to do some things on their own. Embrace these changes and provide these tools.

Then, you can focus on the things that really add value and support long-term relationships with customers, like meeting face to face with a customer who files a catastrophic claim, or advising a client when their life situation or risk profile changes. These are opportunities to demonstrate the added value of working with an independent agent.

‘Lean in’ on digital. You already excel at relationship building, far better than any computer-generated lizard ever will. It takes decades to perfect that. Digital tools, by comparison, are easy to learn or hire for. The path to your doorstep is increasingly driven by search engines, review sites like Yelp and social networks like Facebook. And after the sale, consumers want digital tools to manage accounts themselves.

I believe there is substantial opportunity for all of us if we work together. Now is the time to for us to stand up, lean in, invest in and define our future.

Matt Nickerson is president of Safeco Insurance.