Agentic AI Challenges Independent Insurance Agents’ Customer Focus
Agentic AI has generated buzz among insurance carriers, but independent agents and brokers express concern. They worry that carriers and insurtech companies leveraging AI may be cutting into their business. For these agents, advanced user interfaces are less important than simply providing straightforward access to coverage for customers.
“AI, once it learns how to do something, does it relentlessly and exceptionally well,” says Garrett Droege, senior vice president and director of innovation and digital risk at IMA Financial Group. “We’re trying to optimize our humans with AI. The key is retention.” He points out that while carriers and insurtechs may be siphoning some business, consumers still want to deal with people—especially those equipped with the right tools.
Interfaces Are Secondary to Simplicity
Max Kane, CEO of Novella, an E&S insurance wholesaler, emphasizes that agents value ease over fancy portals. “An agent doesn’t particularly care if we built a portal or how lovely the UI is,” Kane says. “What they care about is finding our customer the easiest way possible.”
Balancing AI Benefits With Safety and Ethics
Even among insurers enthusiastic about agentic AI, internal safeguards are essential. Jason Wrather, assistant vice president and innovation officer at Grange Insurance, highlights the need for safety protocols around consumer data and decision-making processes. The company’s AI policy working group focuses on preventing bias and ensuring responsible use.
“Agentic AI can help create end-to-end process solutions in insurance, but we can’t just set it and forget it,” Wrather warns. “We must weigh pros and cons, put safety measures in place, and keep exploring appropriate applications.”
Agents Remain Central to the Insurance Value Chain
Insurance agents still hold significant power in the market. Josh Curry, executive vice president at BMS Group, points out that agents “own the customer, own the economics, and make the market.” Large brokers seek customer access, not just technology, he notes.
“Unless you’re GEICO or Progressive, most carriers will continue focusing on creating value for the agents that serve them,” Curry explains. Agents provide a cost-effective, customer-centered way to reach the market.
Finding the Right Balance in AI Tools
Linqura, an AI co-pilot for commercial insurance, learned that an open chatbot approach demanded users become “prompt engineers,” a barrier for many. Ryan Hanley, the company’s chief growth officer, shares that adding constraints increased usage and improved customer feedback.
“It’s about combining a familiar, almost analog interface with the power of AI technology,” Hanley says. This balance helps agents adopt AI tools without overwhelming them.
For insurance professionals interested in exploring AI applications and training, there are resources available to build relevant skills and knowledge. Check out Complete AI Training’s courses for insurance jobs to stay informed about practical AI use in the industry.
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