Remember a few years ago when InsurTech was beginning to capture the industry’s imagination? New technologies and business models promised speed, automation, and frictionless service, along with a growing narrative that independent agents were on their way out. For a time, it seemed many believed that human agents would be replaced by platforms, algorithms, and all things digital.
But just as the retail sector saw direct-to-consumer brands eventually acknowledge the enduring value of brick-and-mortar (think Warby Parker, Allbirds, and Glossier), insurance has undergone its own course correction. The independent agent (IA) channel has proven to be not just indispensable, it’s foundational to the core of our sector. Especially for more complex products like home and auto, a purely digital experience can alienate consumers who value expert guidance and personal support.
In response, hybrid models have emerged as a sweet spot, combining the convenience of digital tools with the reassurance of human connection. This balanced approach empowers agents with tools that enhance rather than replace the value they bring to the table.
Helping agents helps carriers
With that said, while independent agents remain central to most carriers’ success, they can often be an underutilized strategic asset. Carriers that truly want to unlock the value of their IA channel must move beyond providing simple training sessions and generic marketing materials. True success comes from adopting a hybrid distribution strategy that blends digital convenience with personalized, human support and treats agents as genuine partners. When empowered, independent agents bring invaluable market insight, strong customer relationships, and frontline intelligence that can inform everything from marketing to product development and innovation.
The numbers prove the point: the share of personal lines premiums written by independent agencies rose to 39% in 2024, up from 38.7% in 2023 and 35.7% in 2020, reflecting a steady upward trend. Carriers that invest in modern tools and flexible operating models tailored to independent agents will not only set their agency partners up for success, but also influence where business ultimately goes. When agents are equipped to better serve their customers, they sell more effectively, benefiting both the agent and the carrier.
Putting it into practice
A Midwest-based provider of motorcycle and auto insurance, primarily operating through independent agents, was looking to deliver more value beyond its core offerings, without compromising operational efficiency.
To achieve this, the carrier partnered with Bindable to launch a digital marketplace offering ancillary products such as renters, life, pet, and RV insurance. Initially introduced to their direct customers, the platform helped drive retention, boost revenue, and improve customer satisfaction.
Recognizing the opportunity to extend those same benefits to their IA channel, the carrier equipped top-performing agents with personalized versions of the digital platform. This allowed agents to cross-sell relevant ancillary products, increasing their value to customers and unlocking additional revenue potential without disrupting their core business. The result: stronger customer relationships, improved retention, and added efficiency across the agent network.
To further support this effort, Bindable was available to provide white-labeled agency services for customers who needed help navigating or purchasing ancillary products. This removed the burden from agents to become experts in every offering, enabling them to stay focused on what they do best while still delivering a seamless customer experience.
By embracing this alternative distribution strategy, the carrier empowered agents to meet more of their clients’ needs, even when the carrier’s core products weren’t the right fit. This approach has helped the carrier strengthen customer and agent loyalty and open new growth opportunities beyond traditional lines, helping them to diversify their risk portfolio, enter new markets, and gain a competitive edge in an evolving insurance landscape.
AI with IAs
No discussion about the future of insurance would be complete without AI. Artificial intelligence is reshaping the industry, but its greatest impact for independent agents will come from augmentation, not replacement. By handling repetitive tasks like processing applications or scanning policy documents, AI frees up time for agents to focus on advising clients, uncovering coverage gaps, and strengthening relationships.
For carriers, the opportunity lies in deploying AI in ways that enhance agent performance rather than compete with it. Predictive analytics, intelligent product recommendations, and conversational tools can help agents anticipate customer needs and deliver more personalized experiences. In this way, AI becomes a force multiplier: combining efficiency and intelligence with the empathy, trust, and expertise that only an independent agent can provide.
The strategic edge of IA enablement
Independent agents bring market insight, regional expertise, and trusted relationships that technology alone can’t replicate. As they look for ways to bring more value to their customers, IAs will gravitate toward carrier partners who empower, not sideline them. Carriers that provide tools to expand product access, streamline workflows, and simplify the customer journey not only strengthen agent loyalty, but also drive stronger growth through the independent channel.
Ultimately, customers win too by getting the best of both worlds: trusted advice backed by digital convenience. And that is where the future of insurance distribution lies.
Ready to explore how Bindable can help you empower your independent agents with digital solutions that drive growth? Let’s talk.
