Independent insurance agents are accustomed to change, but today’s marketplace presents several challenges at once. Rising premiums, tighter underwriting, staffing difficulties, new technology, and growing cybersecurity threats can place additional pressure on even the strongest agencies.
Here are three major issues facing insurance agents today—and one practical step agencies can take to address each one.
1. A Difficult and Changing Insurance Market
Many agents are dealing with higher premiums, stricter underwriting requirements, increased deductibles, coverage limitations, and carrier nonrenewals. These conditions make it harder to find affordable coverage while also creating difficult conversations with clients.
Policyholders may blame their agent for an increase even when it results from severe weather losses, inflation, rising repair costs, reinsurance expenses, or carrier underwriting decisions.
One Helpful Tip: Communicate Before Renewal
Do not wait until the renewal proposal arrives to prepare clients for possible changes. Contact them 60 to 90 days before renewal to:
- Review changes to their property, vehicles, business, or operations
- Update replacement-cost information
- Discuss potential premium increases
- Explain available deductible and coverage options
- Identify discounts and risk-management opportunities
Proactive communication gives the agency more time to explore solutions and helps clients understand that their agent is working on their behalf.
2. Finding, Training, and Retaining Good Employees
Qualified insurance professionals can be difficult to find. At the same time, experienced employees are retiring, and newer team members require licensing, training, mentoring, and time to develop coverage knowledge.
Understaffed agencies may experience slower service, employee burnout, documentation problems, and missed sales opportunities. Agencies must also prepare future producers and leaders if they want to remain successful over the long term.
One Helpful Tip: Create a Written Training Plan
Instead of relying entirely on informal, on-the-job instruction, develop a structured 90-day training plan for each new employee.
The plan should include:
- Agency systems and workflows
- Coverage and product education
- Documentation expectations
- Carrier procedures
- Client communication standards
- Continuing-education opportunities
- Weekly progress meetings with a supervisor or mentor
A written plan creates consistency, helps employees build confidence, and allows agency owners to identify training needs before they become performance problems.
3. Technology, Artificial Intelligence, and Cybersecurity
Technology can help agencies improve efficiency, communicate with clients, organize information, and automate routine tasks. Artificial intelligence may also assist with marketing, correspondence, summaries, and workflow management.
However, these tools introduce important concerns. Employees may unintentionally enter confidential client information into an unapproved platform, rely on inaccurate AI-generated content, or expose the agency to a cyberattack.
Insurance agencies maintain valuable personal and financial information, making them attractive targets for criminals.
One Helpful Tip: Establish a Technology and AI Policy
Every agency should have a written policy explaining which tools employees may use and what information must never be entered into an outside system.
The policy should require employees to:
- Protect confidential client and agency information
- Use only approved technology platforms
- Verify AI-generated content before using it
- Create strong, unique passwords
- Use multifactor authentication
- Recognize phishing attempts
- Report suspicious activity immediately
Technology should support professional judgment—not replace it. Clear guidelines allow an agency to benefit from innovation while protecting its clients, employees, and reputation.
Kansas PIA Helps Agents Meet Today’s Challenges
Independent agents do not have to face these challenges alone. Kansas PIA provides education, advocacy, market-access opportunities, agency-management resources, professional programs, and connections with other insurance professionals.
Through Kansas PIA, members can gain the knowledge and support needed to:
- Respond to changing insurance markets
- Educate and develop their teams
- improve agency operations
- Manage emerging risks
- Protect their businesses
- Prepare for future growth
The challenges facing insurance agents are significant—but so are the opportunities. Agencies that communicate proactively, invest in their people, and use technology responsibly will be better prepared to serve their clients and succeed in a changing industry.
Want additional resources to strengthen your agency? Connect with Kansas PIA and discover the advantages of membership.