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How Insurance Agencies Can Start Adopting AI in 2025

By January 15, 2025February 3rd, 2025Industry Insights
Blog - How Insurance Agencies Can Start Adopting AI in 2025

As the insurance industry evolves, the idea of independent insurance agencies and brokerages embracing artificial intelligence (AI) is no longer a futuristic conceptβ€”it’s become a necessity to stay relevant.Β 

In fact, according to Agency Forward, 79% of principal agents planned on adopting AI by 2025 (Source: Agency Forward).

Because most agencies are leveraging the usage of AI in their agency’s operations, it’s important to start taking steps to do the same for your business.Β 

How can AI help insurance agencies?

AI serves as a multi-faceted tool that can streamline operations, enhance client interactions, and drive business growth. Simply put, AI saves time for insurance agencies so they can focus on running their business.

Here are some strategies that insurance agencies are using to leverage AI effectively. Keep these in mind for ways that your agency can take inspiration and implement some or all of these ideas.

1. Streamline Agency Operations with AI Automation

When used right, AI can significantly reduce the time spent on repetitive tasks for insurance agents, producers, and CSRs alike. It takes the monotony out of the day-to-day to-do’s by handling the easy stuff for you that much faster.Β 

By implementing AI-driven automation, insurance agencies can spend less time on the small details and focus on the bigger pictureβ€”growth.Β 

This is one of the simplest implementations of AI into agency operations, but also the most effective because of how it can put time back into your agency’s day.

Here’s a thought experiment you can run through to identify areas that can make your agency more efficient with AI.

Think through what actions or processes your team does on a day-to-day basis. Can any of those be automated in some way, shape, or form? Then, consider how much time can be saved by making your team more efficient.

Here’s what you can try with AI:Β 

  • Β Increase productivity by having your team use AI to handle simple, repetitive tasks that they normally do manually.
  • Create templates to outline step-by-step processes and client communications to become more efficient and consistent.Β 

2. Enhance Client Engagement Through Personalization

AI enables personalized communication, which is crucial for building strong client relationships. By tailoring these interactions, insurance agencies can improve customer satisfaction and loyalty.

Whether your clients are communicating with you by email, text message, or live chat, there are opportunities to optimize how you respond back. If a client reaches out to you, are you prepared to give a prompt and meaningful reply?

Insurance agencies are adding AI into the mix to help them respond to clients, particularly for the common and simple responses that otherwise eat up time. This leaves more room for your agency to spend on complex communications that require more care, attention, and the knowledge of a licensed agent or broker to solve.

With all of this in mind, take stock of your current client communication strategy.Β 

How often are your clients reaching out to you, and by which methods? What is the percentage of simple requests vs. complex ones? How do you currently provide service and respond to your clients online?Β 

Here’s what you can try with AI:Β 

  • Create message templates for frequently asked questions that your agency can use with ease.
  • Check and respond to online reviews and social media comments using AI to help formulate responses.Β 

3. Refine Your Agency’s Marketing Efforts

A strong digital presence is vital in today’s competitive market, especially for the insurance industry. AI can enhance your agency’s visibility and search engine ranking through content creation.

Not every insurance agency has a dedicated marketing team. And even those that do, they can still take advantage of AI to help generate ideas and content to use in marketing efforts.Β 

Think of blog articles, social media posts, newsletters, emails, and other web contentβ€”all of this can be created using AI and potentially give new insights and ideas to change up how you market your business.

So consider your current marketing strategy. Are you actively creating content for your website, blog, and social media? How much of your agency’s focus is dedicated to marketing vs. where it should be? Are you seeing any success from your current marketing efforts?Β 

Here’s what you can try with AI:Β 

  • Draft and create website, social, and blog content to stay on top of your marketing efforts.Β 
  • Create a brand outline to identify your target audience, brand voice, niche markets, and develop marketing strategies based on your specific goals and offerings.Β 
  • Ask AI for advice on how to improve your current marketing strategies.

4. Establish and Nurture Client Relationships

Enhancing the client experience should be the goal of every insurance agency. There are multiple ways to achieve this, but the easiest is to make sure your clients are hearing from you often.Β 

To figure out how often, you have to consider your client’s journey in their lifecycle as a clientβ€”what are the key milestones they experience?

When a client…

  • Signs up for their first policy.Β 
  • Files a claim request.Β 
  • Pays their bill on time.
  • Has a life event that changes coverage needs.
  • Is impacted by a change to their coverage.Β 
  • Celebrates their birthday.
  • Is up for policy renewal.Β 

Each of these milestones is going to apply to the vast majority of your client base at one time or another. What insurance agencies can capitalize on is using AI to develop messaging that can be used to send to clients when the time is right.Β 

Consider how often you are currently reaching out to your book of business? Are you connecting with clients during these important touchpoints? Do you have automation tools in place to streamline these communications?Β 

Here’s what you can try with AI:

  • Determine the key points of your client’s journey that you want to incorporate communication into.
  • Create messaging for relevant client milestones that can be sent manually or through automation.

Key Takeaways

By adopting AI as a multi-faceted tool, insurance agencies can transform their operations, improve client engagement, and drive sustainable growth.Β 

Implementing these approaches can help keep your agency on the leading edge of AI adoption. By embracing the technological advances that AI has to offer, it can unlock the full potential, so your independent insurance agency can thrive.

Remember, every agency is different, and before using AI, you should think through what problems your agency is facing so you can use that information to develop a plan to incorporate AI. Take those goals and turn them into a reality by partnering with AI technologies to achieve them.

How Agency Revolution Can HelpΒ 

When it comes to AI, Agency Revolution has made great strides to invest and incorporate effective AI-driven tools that our agencies get full access to.Β 

With our AI solutions, insurance agencies can:Β 

  • Draft emails and blog posts that fit your agency’s brand in moments with our AI-powered content creation tool, FirstDraft.Β 
  • Ask our AI-powered assistant, Sidekick, for help and answers to your questions related to our digital marketing platforms.Β 
  • Connect your AMS to send out personalized emails, text messages, and physical mail to your book of business with content you can create with AI.Β 
  • Have social media posts automatically publish and share content to your social profiles based on your preferences driven by AI.
  • Provide feedback to improve AI features as you use them to directly impact future enhancements.Β 

If these AI-driven features sound interesting to you, see some of our AI features in action and learn more about our complete marketing platform here.Β 

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Thanks for flipping over one last beach ball! We’ve loved sharing with you this month. Have a great 4th of July!