Insurance agencies often begin the tech adoption process with the best intentions. They research, purchase, and onboard new solutions with clear goals in mind—improving operational efficiencies, saving time, analyzing data, staying compliant, communicating with clients, and boosting employee productivity, to name a few.
However, a recent Catalyt report about how independent agencies use technology highlights the challenges many agencies face in finding and fully adopting technology that meets their individual needs.
When an agency invests in new technology but fails to install or fully adopt it, it has spent the money but is missing out on the technology's benefits—a double-lose situation. In this piece, we’ll address how agencies end up with ill-suited technology and ways the next tech purchase can be a win for everyone.
Unused technology: The real hidden costs
When the new software sits unused or only a few people can use it effectively, the purchase price is only the beginning. Underutilized technology is laden with costs that can’t be captured on a balance sheet.
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Lost productivity: It takes time and energy to research, select, implement, and train people on a new tool. When the selected product doesn’t leave the gate or sits idle, that’s effort down the drain.
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Missed efficiency gains: InsurTech products are specifically designed for independent agents to automate tasks, streamline complex workflows, and ultimately empower employees to focus on what they do best: working closely with clients. Underutilizing tech tools causes agencies to miss out on these productivity boosts, and employees remain bogged down in manual processes.
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Undiscovered alternative: Every dollar spent on underutilized technology is a dollar that could have been invested in a different solution—one that might have been a better fit and worked for the agency's continued success.
Unlocking effective insurance tech adoption
The good news is that agencies can end the tech purchase/abandonment cycle. The shift requires agencies to change their perspective and take a more strategic approach to adoption and use. By moving from reactive purchasing to proactive planning, independent agencies of all sizes can be confident in finding and adopting the tech solutions that make the most sense for their business.
Start a technology search with defined goals
The new cycle starts with a commitment to defining growth, progress, and success. Agencies that begin with defined, measurable goals are more likely to build a framework that supports successful tech adoption. Starting with vague aspirations like "being better" or "becoming more efficient" doesn’t form a solid foundation for tech decision-making.
Leading with specific and measurable targets—a 20% increase in new business, a 15% reduction in administrative overhead, or a 95% client retention rate—enables agencies to enter the tech market with a clear idea of the tech they need to reach their goals. And identifying clear goals ensures that implemented tools will align with the agency's core objectives.
Future-proof agency tech with a long-term plan
The most effective technology decisions are married to a long-term plan articulating strategic objectives and key milestones. This detailed roadmap, complete with measurable targets and timelines, provides a solid framework for evaluating how technology supports an agency’s unique vision for success. This planning phase is critical for tech research, purchase, and adoption because it ensures that investments are purposeful and support the agency's overall strategic direction.
Match agency goals to technology tools
The portfolio of InsurTech tools is diverse and vast—there is a tech solution for every agency task and goal imaginable. But the sheer number of solutions can be disorienting, and making informed decisions requires solid knowledge about what a tool can and can’t do.
Software solutions for insurance agencies are not one-size-fits-all. Agencies that recognize this are less likely to adopt a solution that does not address their particular issues. For example, a customer relationship management (CRM) system is ideal for enabling an agency’s growth, but isn’t meant for high-level data analytics and compliance management. Likewise, content management solutions are great for improving workflows and managing documents, but won’t aid in policy management. Being well-informed about products is key to selecting the appropriate solution.