Independence Requires Expertise

Technology…it’s invaded nearly every aspect of our lives today. It’s almost impossible to function without it. Did anyone ever dream the time would come where you would actually take time off to avoid using technology?

There is no business more affected by technology than insurance. It’s changing the way we operate our business. It’s creating new risks and exposures. It’s changing how we market and sell coverage. The ability to gather, analyze and use data has caused some insurance providers to believe they can offer insurance protection without asking the applicant any underwriting questions. It is truly a game changer.

Any agency that doesn’t have the knowledge and resources to understand and apply technology in every aspect of their operation will be unable to remain viable and grow going forward. Don’t misunderstand me—I still believe the real value of an agency lies in the insurance knowledge, expertise and commitment of its people. The problem is you can’t attract and retain new clients, as well as effectively and efficiently retain and service all clients, without the significant use of technology in every facet of your business.

I think the day has come where an agency of any size is going to have to employ a dedicated person or persons in charge of analyzing and implementing various forms of technology to assure agency effectiveness. Currently many agencies have someone who holds primary responsibility for the agency management system, however that is just one piece of the overall needs of today’s successful independent agency.

Social media, digital marketing, SEO, mobile technology, cyber security, agency systems support, disaster preparedness, customer contact and relationship building, electronic claims handling, live chat,  remote employees, virtual employees, data analysis, artificial intelligence and chatbots are just some of the technological features being used in agencies today.

Researching, planning and successfully implementing these various areas takes the skills of someone with significant background in technology. Even if an agency intends to outsource many of these items, it needs someone on staff who understands today’s technology and can evaluate and implement the most cost effective option.

With today’s commission structure and the cost of ever-improving hardware and software, the last thing any agency wants to deal with is an additional staff position dedicated to guiding the agency in the effective use of technology. Unfortunately, I don’t see how any agency can expect to grow and flourish today and in the future without having such a person. It’s very possible that staffing needs like this are partially contributing to the increased mergers and acquisitions we are seeing as agencies search for ways to meet the increased costs and changing needs of operation.

If the technology position is filled with a skilled and effective person, their work and decisions should have a positive impact on the revenue of the agency. Excelling in social media, digital marketing, SEO and mobile technology will help the agency market itself by attracting new clients as well as retaining existing clients. Cyber security, agency systems support, customer contact and relationship building, and electronic claims handling make the customer delivery system more effective and efficient—cutting costs and improving customer satisfaction. Data analysis allows for a better understanding of clients that can lead to more effective marketing and handling of their needs. Live chat, remote employees, virtual employees and chatbots cut costs and improve service for those clients looking for 24/7 service capabilities.

So what’s the point? The point is that with the significant invasion of technology into the independent agency system, most agencies have a need for a dedicated person who understands today’s technology and can make sure the agency is using it effectively. They need to be able to explore the options, selecting the best one for the agency based on need and cost. Agencies that don’t integrate such a position will struggle and eventually fall behind in effectiveness and revenue. To stay relevant and effective an agency must have the leadership necessary to keep them at the forefront of where our business is going.