Agencies plan AI increase, cite client experience
Two-thirds of independent agencies intend to increase AI use in the next year, driven by client experience, efficiency, and competitive differentiation according to a recent survey.
Independent agencies are motivated to adopt AI for operational efficiency (60%) and to boost staff productivity (52%). Many remain in early adoption phases; a survey reveals 33% are experimenting, 31% aren't using AI, and only 8% have it embedded in daily workflows. AI can automate responses to frequently asked questions and offer self-service options for quotes and claims. AI-powered chatbots and virtual assistants can also act as extensions of insurance agents by answering questions and directing policyholders to needed information. This allows agents to handle more complex tasks and build stronger customer relationships. Concerns about data privacy/compliance (24%) and inaccurate outputs (22%) are slowing AI adoption. Some agents worry about losing the human touch (17%) or lack understanding of how to apply the technology (16%). AI is being used to support high-volume, repeatable tasks like drafting emails, summarizing calls, and generating marketing content. Some agencies use it for back-office reviews and underwriting tasks, starting in lower-risk areas with essential human oversight. AI tools can scan and summarize insurance forms and policies to help with quoting, processing renewals, and claims. AI adoption in insurance is expected to continue to surge; the AI in the insurance market was valued at $8.63 billion in 2025 and is expected to reach $59.5 billion by 2033.
