The insurance landscape is evolving with digital processes and purchasing offerings becoming the gold standard for agents and carriers. That is according to new research from Bindable, the insurance technology leader for alternative distribution. The new “Future of the Agent” report takes a look at the state of independent agents, the impacts of COVID-19 on their businesses, and how the adoption of technology will be a critical part of remaining competitive in the insurance ecosystem.
The impacts of COVID-19 are being felt across the insurance industry and independent agents are still working through the fallout with 78% saying that their businesses were negatively impacted, with agents reporting an average 38% drop in sales and revenue. Many agents attribute their challenges to being unprepared to work from home, a lack of technology, and having to drastically adjust their businesses. Six out of ten agents say that they were unprepared to work fully remote with another 57% wishing they had better technology to assist them and their businesses during the pandemic. What’s more, 54% of agents say that they made significant changes to the way they conduct business with another 79% citing that their individual roles have fundamentally changed because of the pandemic. Without having the proper technology in place, nearly half of agents reported their client relationships suffered and ⅓ struggled with client retention.