The independent agency channel is approaching a crossroads. Half of all insurance agents are expected to retire within the next decade. Fewer than a quarter of today's insurance professionals are under 35. Meanwhile, consolidation driven by private equity often prioritizes short-term efficiency over long-term innovation, and direct-to-consumer models continue to chip away at the personal relationships that have long defined this industry.
This moment of disruption feels daunting, but it's also an opportunity to reimagine what's possible.
Redefining the future of insurance
Having spent my career building companies in relationship-driven sectors, I've seen how technology, when applied carefully, can elevate rather than replace human connection. The same potential exists in insurance—if we focus not on automating the agent out of the process but on empowering them to do more of what they do best.
After hundreds of conversations with agency owners across the country, I hear the same theme:
"I got into this business to help people, but most of my day is spent on admin work."
The challenge isn't a lack of tools; it's that the tools don't work together. Agencies today face a fragmented tech landscape where systems don't talk to each other, and humans are forced to bridge the gaps.
That's not a sustainable path forward. But there's a better one.
Where AI fits in: clearing the path, not replacing the people
Much of the discourse around AI in insurance focuses on splashy use cases: chatbots, robo-underwriting, algorithmic pricing. But the most transformative opportunities are often the least visible.
The real promise of AI lies in the back office—in removing the repetitive, manual work that prevents agents from spending time with clients. It's not about replacing humans; it's about clearing the way for them to do more of what matters.
This starts with solving the real technology problem facing agencies: connectivity.
Consider just a few high-impact applications of AI:
- System integration: Seamlessly connecting CRMs, AMSs, carrier portals, and quoting tools to eliminate manual data entry.
- Document processing: Extracting structured data from unstructured files like PDFs, emails, and ACORD forms.
- Renewal automation: Orchestrating renewal workflows to ensure timeliness and reduce follow-up fatigue.
- Data validation: Comparing inputs across systems to catch discrepancies before they create downstream issues.
And the great news is, there are a number of VC-backed solutions already solving some aspect of this broader agency solution.
Why it matters: Relationships drive results
The financial benefits of automation are undeniable. Many traditional independent agencies are stuck operating at sub-20% EBITDA margins, largely due to the inefficiencies of a disconnected system. While this affects profitability, the greater impact is on the client experience and the relationships that truly drive this industry forward.
Instead of reinvesting hard-earned commissions into fostering and growing these relationships, agencies often find those resources drained by tedious, repetitive tasks. This leaves agents reactive rather than proactive, limiting their ability to build trust, offer meaningful advice, and deepen connections with clients.
Technology doesn't have to undermine the human element of this work. When implemented thoughtfully, it enhances it, allowing agents to step away from the paperwork and focus on what really matters: creating and strengthening personal connections in an increasingly impersonal world.
Done right, automation doesn't replace humanity. It gives people the time and space to truly be human.
A road map for agencies ready to begin
For independent agencies looking to take the first step, I recommend a measured, practical approach:
- Audit your workflows: Track where your team spends time over a week. Identify high-frequency, low-value tasks.
- Evaluate your systems: Map out your tech stack and highlight where manual handoffs occur.
- Start small: Automate one process first. Document handling is often a low-risk, high-reward place to begin.
- Focus on outcomes: Don't pursue AI for the sake of AI. Define success as time reclaimed for relationship-building.
- Choose your partners carefully: Whether you build, buy, or partner, connectivity should be the priority, not just shiny features.
The balance of success
My fundamental belief about the future of insurance is that success will come from equal parts innovation and relationships, technology and tradition.
The agencies that thrive will not be the ones that resist technology, nor the ones that abandon the human touch. They will be the ones that use automation to enhance what makes them unique, removing friction so relationships can grow without unnecessary barriers.
In a world that often feels divided between high-tech efficiency and high-touch service, the most resilient path is not choosing one over the other. It is finding a way to bring both together in a way that strengthens each.
The independent agency model has endured for generations because of the value of trusted, personal advice. With the right approach to AI, that model will not only survive the digital transformation. It will help define the future of the industry.
