When it comes to insurance, trust is paramount. For smaller agencies to thrive, they must foster confidence and loyalty through reliable service agents who are knowledgeable about risks and well-versed in complex insurance coverage options.

Yet, in today's competitive market, achieving these goals requires more than just insurance knowledge, they need to do it digitally and in person. The right technology can be a powerful tool, equipping agencies to not only maintain a strong client presence but also streamline their internal processes to create a more efficient and impactful operation.

Considering the projected growth of the global InsurTech market—at a compound annual growth rate of 52% between 2021 and 2030, according to Spherical Insights—smaller agencies could miss out on significant opportunities for long-term success if they postpone the adoption of digital solutions.

Financial services and insurance are among the industries at the most risk of losing employees from burnout, according to a 2023 survey from Ringover. This data isn't so surprising. Small agencies resist leveraging InsurTech solutions, often due to budget concerns or aversion to change, resulting in agents being left with a mountain of manual tasks, such as entering client information into multiple systems, generating quotes and issuing policies.

The daily grind of administrative tasks eats away at valuable time and resources. However, insurance agencies can benefit from InsurTech by freeing up agency staff to focus on building trustworthy relationships.

InsurTech solutions that can automate repetitive tasks fit a wide range of budgets. For example, an agency could benefit from a customer relationship management (CRM) system that works by integrating with the agency management system (AMS) and carrier portals, allowing data to be automatically captured and transferred, eliminating the need for multiple manual data entries.

Once data has been consolidated, agencies can leverage InsurTech platforms to access advanced analytics that allow agencies to identify trends, understand customer behavior and personalize their marketing efforts. Insurers that offer personalized experiences see an 81% increase in customer retention, according to DataArt. And isn't that exactly what small agencies need too?

Automation that fuels personalization and other marketing techniques doesn't just alleviate the burden on the agency staff. It also allows agencies to improve their customer experience (CX) by empowering smaller agencies to transform client interactions by giving clients what they expect.

Customers increasingly expect modern ways of managing their policies. As many as 61% of customers surveyed by Salesforce reported that they would rather use self-service tools, like online portals, to resolve simple issues.

InsurTech platforms provide agencies with branded client portals that offer a one-stop digital portal for policy management. Others provide tools for submission data and signature capture. Clients can access their documents, report claims, make payments and update personal information from a secure online platform. This empowers clients with 24/7 access to their insurance information and reduces the burden on agency staff for routine inquiries.

Furthermore, agencies can combine quote data with industry knowledge and market data to determine the right coverage and realistic pricing for their clients. This allows them to propose personalized coverage recommendations backed by true data. Combining this with a personalized, relationship-first approach can significantly improve client satisfaction and foster long-term relationships.

By embracing InsurTech, smaller agencies can keep pace with the evolving insurance landscape and gain a competitive edge. They can free up their agents to focus on building strong client relationships, providing personalized service and, ultimately, growing their business.

Jason Keck is founder and CEO of Broker Buddha.