How Independent Insurance Agencies Are Using AI to Boost Productivity and Manage Risk

How AI Is Changing Independent Insurance Agencies

Artificial intelligence is transforming how agencies work, communicate, and compete. At IIAT’s INSURCON, Catalyit hosted a panel with three industry leaders who explained how agencies can use AI effectively and responsibly.

What Is AI and Why It Matters for Agencies

Seth Preus, founder of Mivation, explained the difference between traditional software and AI: Software follows rules. AI makes decisions.

There are two main types of AI to understand:

1. Large Language Models (LLMs) – tools like ChatGPT or Gemini that simulate knowledge but can make factual errors.
2. AI Agents – systems that take autonomous actions, such as self-driving cars.

AI’s learning speed is unprecedented, and even its creators can’t fully explain how it makes decisions.

“It may be the first time in history we’ve built something we don’t completely understand.” – Seth Preus

How Agencies Are Using AI

Jackson Rollo, President of Rollo Insurance Group, described his shift from skeptic to daily AI user. For him, AI doesn’t replace people — it enhances productivity.

Beginner Tips

• Use AI like a smarter search bar.
• Summarize or reword emails with tools in Gmail, Outlook, or your CRM.
• Brainstorm blog topics or build a content calendar.

Intermediate Examples

• Autofill data from dec pages into quoting platforms.
• Compare policy terms or identify coverage gaps faster.

Advanced Use

• Build automations or workflows without coding.

“You don’t need to be tech-savvy. You just need to be curious.” – Jackson Rollo

Cybersecurity and Compliance Risks

Ryan Smith, founder of RLS Consulting, cautioned agencies to stay alert when using AI tools.

Key Risks

• Confidentiality: Never input client data into free AI tools.
• Integrity: Always verify AI-generated content for accuracy and compliance.
• Availability: Have a backup plan if AI tools fail.

He also warned about prompt injection, where hackers manipulate AI outputs.

“If you’re not paying for the product, you are the product.” – Ryan Smith

How to Choose the Right AI Tools

Preus emphasized focusing on solving real problems instead of chasing hype. Use this framework:

1. Identify pain points. Start with repetitive or time-consuming tasks.
2. Assess your data. Clean, structured data improves AI accuracy.
3. Vet vendors. Ask about SOC 2 compliance and data security.
4. Measure results. Track time saved, cost reductions, and performance gains.

Final Takeaway: Start Smart, Stay Human

The panel agreed: AI is a tool, not a threat. Agencies that approach it with curiosity, caution, and clarity will gain the most value.

“Fear is healthy—it leads to respect. But don’t let fear stop you from trying.” – Jackson Rollo