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

Artificial intelligence isn’t just a buzzword—it’s reshaping how agencies work, communicate, and compete. But what does that mean for independent insurance agencies?

At IIAT’s INSURCON, Catalyit hosted a panel featuring three industry leaders who cut through the noise and delivered practical insights, real examples, and smart cautions to help agencies use AI more effectively—and more responsibly.

What Is AI—and Why Should Agencies Care?

Seth Preus, founder of Mivation, began with a foundational point: traditional software adheres to rules. AI makes decisions.

That’s a big shift, with big implications.

There are two main types of AI to understand:

• Large Language Models (LLMs) like ChatGPT and Gemini simulate knowledge (but can “hallucinate” and get things wrong).
• AI agents, such as self-driving cars, take action without human input.

AI’s speed of advancement is unprecedented. It’s learning faster than we can keep up, and even the creators don’t fully understand how these systems make decisions.

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

How Agents Are Using AI

Jackson Rollo, President of Rollo Insurance Group, shared his journey from being an AI skeptic to an everyday user. He realized that AI wasn’t about replacing people—it was about improving productivity and simplifying daily tasks.

Beginner tips:

• Use AI like a smarter search bar.
• Rely on built-in tools in Gmail, Outlook, or your CRM to summarize emails or reword messages.
• Let it help brainstorm blog ideas or build a content calendar.

Intermediate examples:

• Use AI to extract and autofill data from dec pages into quoting platforms.
• Quickly compare policy terms or identify coverage gaps.

Advanced use:

• Even without coding skills, AI can help you build scripts, automation, and custom workflows.

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

Proceed With Caution: Cybersecurity & Compliance

Ryan Smith, founder of RLS Consulting and a contributor to Catalyit, offered a vital reminder: AI is powerful, but it’s not always secure.

Key risks agencies need to manage:

• Confidentiality: Don’t enter sensitive client data into free AI tools—they may retain or reuse it.
• Integrity: AI can generate false information. Always review content, especially when it involves licensing, compliance, or client-facing communications, to ensure accuracy and adherence to relevant regulations.
• Availability: What happens if your AI tools go down? Make sure there’s a backup plan.

Smith also warned about prompt injection—a technique hackers can use to manipulate AI behavior. He cited real-world cases where chatbots were tricked into giving out false information or selling items for $1.

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

Choosing the Right AI Tools for Your Agency

Preus emphasized the importance of intention over hype. Don’t adopt AI just because it’s trendy—start with the problem you’re trying to solve.

A simple framework:

1. Identify pain points. Look for repetitive, time-consuming tasks.
2. Assess your data. Clean, structured data is critical for AI success.
3. Vet your vendors. Inquire about SOC 2 compliance, data security, and the achievement of measurable outcomes.
4. Measure results. Is it saving time? Reducing costs? Driving growth?

Final Word: Start Smart, Stay Human

The consensus from the panel? AI isn’t something to fear—or blindly follow. It’s a tool. One that can supercharge your agency if you approach it with curiosity, caution, and clarity.

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