The State of Tech in Independent Insurance Agencies

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Vertafore’s Sircon is the top choice for agency state license compliance. Many state insurance regulators also use it for agent license filings. Agency license compliance solutions assist agents in tracking licenses, renewal dates, and continuing education requirements. They enable the creation of reports and alerts to prevent penalties or fines for non-compliance. These solutions help independent agents streamline the compliance process, reducing non-compliance risks and maintaining licenses to operate within and across state lines.

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Commission revenue from employee benefits is becoming an increasingly significant portion of some agencies' total revenue. Popular benefits quoting and management platforms like Applied Benefits Designer and BenefitPoint (Vertafore) assist agents in selecting and managing employee benefits. These platforms offer various options, including health, dental, vision, and retirement plans. They help agents streamline enrollment, manage employee data and eligibility, and provide ongoing support and education. Using these platforms, agents can offer comprehensive benefits packages tailored to clients' needs while reducing administrative workload.

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Vertafore's PL Rating leads at 32%, with Applied Epic Quotes and Applied's EZLynx following at 18% each for policy quotes. Quoting platforms allow agents to obtain quotes electronically, reducing time and effort and improving data accuracy. Many offer real-time updates on application status, allowing agents to monitor progress and resolve issues. Using quoting platforms helps agents improve efficiency and reduce errors.

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The rise of Generative AI tools (like ChatGPT) opens new opportunities for chatbot solutions. These new Chatbots enhance customer service capabilities and create more intelligent solutions. Chatbots provide instant responses to customer inquiries, leading to higher satisfaction levels and decreased workloads for support teams. Agents benefit from having access to increased 24/7 support options, improved customer service, and enhanced efficiency.

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CRM utilization is on the rise for prospecting, sales pipeline tracking, and marketing. AgencyZoom (Vertafore) is currently the leader with 25% usage, and there is a growing number of Salesforce implementations. Integration with an AMS is essential. CRM software assists agents in managing client engagement and new leads, automating marketing follow-up, and analyzing customer behavior.

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Cybersecurity is crucial for safeguarding customer data. Surprisingly, 66% of respondents do not have a cybersecurity solution. Most rely on local IT providers, who may specialize in something other than cybersecurity. Cybersecurity solutions typically include antivirus software, firewalls, encryption tools, and employee training. Independent agents handle sensitive client data, exposing them to potential financial loss, damage to their reputation, and legal liability resulting from data breaches. These risks can be mitigated by implementing cybersecurity solutions, allowing agents to maintain their reputations as trusted business partners.

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Applied Analytics leads in usage, while AgencyKPI and DONNA (Aureus Analytics) score highest in customer satisfaction. Only 18% of surveyed agencies use data analytics models. Many agencies are missing opportunities for insights and sales optimization. Data analytics technology enables agents to collect, process, and analyze diverse data, revealing patterns, trends, and opportunities. By adopting data analytics, independent agents stay competitive and make informed decisions when responding to market changes.

_{*Winding down business operations as of April 2024}

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Electronic payment options help to make it easier for online customers to make payments. ePayPolicy is the most popular choice, with over 40% of agencies using it. Digital payments eliminate paper checks and manual processing, which means payments are received more quickly and with fewer errors. Some vendors are also growing in offering premium finance payment options. These options come with improved security features that protect against fraud and theft. Agents can use digital payments to simplify billing, reduce costs, and better manage cash flow and financial reporting.

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Electronic signature technology allows agents to sign and send documents electronically, eliminating the need for printing, mailing, and faxing. This reduces turnaround time and errors while enhancing the customer experience. DocuSign is the leading electronic signature platform, with nearly 50% of respondents using it. Its partnerships with AMS ensure ease of use. Electronic signatures are legally binding, and most platforms provide a secure audit trail, protecting agents from fraud and liability. By embracing electronic signatures, independent agents can close deals faster, reduce administrative costs, and increase efficiency and productivity.

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Agencies depend on hardware, computer systems, and networks daily, making full-service IT/Managed Service Providers (MSPs) essential. MSPs charge a monthly fee for on-demand IT services, network security, and system management. A dedicated MSP ensures quick recovery and uninterrupted work, enabling agencies to concentrate on their core insurance business while the MSP handles their network and computer systems.

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Zywave and TrustedChoice.com are the top choices for lead generation. Surprisingly, only 10% of agencies still use cold calling services. New players like SALT help automate online leads for personal lines. By leveraging marketing automation platforms with features like lead generation, independent agents can save time, reduce costs, and ultimately grow their business by reaching the right audience with the right message at the right time.

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Marketing automation platforms streamline marketing efforts by offering features such as email marketing, social media management, lead tracking, and analytics. These platforms automate repetitive tasks, nurture leads, and measure performance. They enable personalized messaging, audience segmentation, and targeted campaigns. The top platforms in this category include Applied Marketing Automation, Levitate, Agency Revolution, and AgencyZoom (Vertafore). Setting up these platforms will ultimately save time and money, streamlining your marketing efforts and boosting efficiency.

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While 56% of users utilize Applied's CSR24 portal as their mobile-friendly platform, only 18% use a native mobile app. A mobile app provides clients with 24/7 access to certificates, policies, and other important information. Its features include access to policy documents, billing information, claims tracking, and messaging, allowing clients to manage their insurance needs on the go. An agency-branded mobile app is essential for agencies to remain competitive in the digital age, meeting customer expectations for mobile access to information and services.

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Agencies need help getting prospects and clients to complete necessary insurance applications and forms. Implementing an electronic form completion process makes this easier for the agency and much better for the client. Indio (Applied) is the current leader with a 26% share. Adding this process is an easy way to enhance your agency's client and prospect experience.

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Virtual assistants are gaining popularity as agencies outsource non-core and time-consuming tasks to third-party service providers. This allows agency staff to focus on client engagement. Outsourcing provides access to specialized expertise and services that may not be available in-house, such as accounting, marketing, administrative, or IT support. By outsourcing these tasks, independent agents can reduce operating costs, improve efficiency, and access resources that would otherwise be too expensive or difficult to acquire. There are several popular outsourcing options available for agencies of any size.

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Password managers are becoming increasingly popular for securely managing and storing passwords. Using the same password for multiple accounts can create significant security risks. Password managers enable users to create complex, lengthy passwords as they are saved digitally. W hile LastPass is widely used, other more secure options are available, such as Bitwarden, RoboForm, Keeper, and 1Password. These tools help reduce security risks and encourage safe password practices.

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Phone systems offer numerous features, including dedicated business lines, call routing, voicemail, and call recording, which enhance agents' customer service and call management. Integration with CRMs, quoting platforms, and sales management systems streamline workflows and consolidate client information and call history. RingCentral is a leading provider in the market. Independent agents can improve their professional image and communication by utilizing modern phone systems.

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Small commercial quoting platforms significantly reduce the cost of acquiring this class of business. Modern quoting platforms provide tools for tracking quote status and generating follow-up tasks, enabling agents to manage their sales pipeline effectively and close deals. Tarmika (Applied) is the leader in the commercial quoting platform market. New players like QuoteWell are emerging as promising solution providers. Independent agents can save time, reduce errors, and increase sales productivity and revenue using commercial quoting platforms.

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Personal lines quoting platforms have been in use for some time. These platforms allow agents to quickly and easily create professional quotes customized to clients' needs and preferences. By providing various templates and customization options, quoting platforms save time, improve accuracy, and enhance the client experience. Additionally, they help agents keep track of issued quotes, monitor pending deals, and establish an effective lead follow-up process. The top 3 personal lines quoting platforms are PL Rating (Vertafore), EZLynx (Applied), and Applied Rater/Epic Quotes, with 89% of respondents using one of these tools.

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Reputation management, often overlooked, is crucial for driving website traffic and maximizing search engine optimization (SEO). These solutions help agents monitor and manage their online reputation and brand image by tracking business mentions across social media channels, review sites (Google Reviews), and search engine results. They ensure a timely response to feedback and offer tools to generate positive reviews from satisfied customers. By leveraging these systems, agents can protect their online reputation, create a strong brand image, and significantly boost business success, providing a reassuring sense of effectiveness.

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Only 14% of respondents use a sales (producer) management platform. Salesforce, AgencyZoom (Vertafore), and Applied Epic are the most popular choices for those that do. These platforms improve sales processes, efficiency, and deal-closing effectiveness by providing features such as lead tracking, contact management, sales pipeline management, and reporting. This enables agency management to monitor and track sales activities and prioritize efforts, ultimately leading to improved sales performance and more closed deals.

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These platforms streamline social media marketing and efficiently manage online presence across multiple channels. They often offer content scheduling, post automation, analytics, and engagement tracking, helping agents save time and increase visibility. Social media management platforms also help agents monitor and respond to customer inquiries and build relationships with their audience. Levitate, Hootsuite, ClientCircle, and Agency Revolution are the top four social media management platforms for independent agents.

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Approximately one-third of agency respondents utilize text messaging as a marketing strategy. Text messaging platforms enable agents to send and receive messages from computers or mobile devices, respond to inquiries, schedule appointments, and send real-time reminders. These platforms also facilitate sending targeted messages to specific client groups, thereby improving the effectiveness of marketing campaigns. Independent agents can use text messaging platforms to improve responsiveness and customer service. Applied Epic, EZLynx (Applied), and AMS360 (Vertafore) enable streamlined texting workflows. Federal and state regulations are continuously evolving to keep pace with market and technological advancements, making it crucial to ensure that your agency remains compliant.

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One of the top concerns for agencies is finding, hiring, and retaining the necessary staff. Hiring someone with insurance experience can be challenging, especially if the agency needs a training program. Total CSR addresses this issue by providing agencies with a predefined training program to help new hires with little to no experience get up to speed faster than they would on their own. This also helps to reduce the training burden on the agency.

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Microsoft Teams has increased its market share lead over Zoom as many companies have transitioned to the cloud and now utilize Microsoft 365, which includes Teams Video. This transition exemplifies the importance of monitoring your tech stack and eliminating redundant platforms. Why pay for Zoom when the same capability is included in Teams? Independent agents can broaden their reach, improve efficiency, and provide a more personalized, engaging experience for clients and prospects by utilizing video conferencing platforms.

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Ensuring the agency website is ADA-compliant is important for two reasons:

1. It makes your agency more friendly to individuals with disabilities, and
2. It helps prevent attorneys from trying to extort money from the agency for not being ADA-compliant.

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Most agents use local firms for website development. Nationally, Agency Revolution and its new subsidiary, Forge3, hold a significant market share. Website development firms offer customized solutions tailored to agents' needs, such as lead generation, brand awareness, or online sales. They also provide ongoing maintenance and support to keep websites updated and secure. Independent agents can establish a strong online presence using website development firms, enhance credibility and reputation, and attract and retain more clients.