STATE OF AGENCY TECHNOLOGY REPORT

Catalyit is passionate about two things: independent insurance agents and technology. That’s why they have combined the best minds with the best tools to deliver the single greatest tech resource in the industry. They understand that no one can do it all alone, which is why they source technology platforms and solutions, deliver first-hand reviews and ratings and build a training module that helps agents succeed while running a successful agency, managing a team and serving customers. By doing what they do best, Catalyit empowers agents to do what they do best, but even better. So, no matter where agents are on the technology spectrum – from early adopter to experienced implementer – they can rest assured they are in the right place. Best of all, every member of your agency gets free access to Catalyit’s resources as part of your membership in the IIAW.

Alongside providing a variety of tools and resources to agents, Catalyit also conducts research, such as its Tech Stack Report for independent agencies. This report helps agencies see what others are using the industry and can help spark new ideas for technology adoption. From agency management systems to chatbots, the State of Tech Report covers it all. The 2023 release of Catalyit’s State of Tech in Independent Insurance Agencies includes results from nearly 500 agencies and is now available to download. This report shares findings from the survey and insights on how each area impacts agency value. This month’s magazine issue includes a few snapshots from the report.

Overall, the report highlights the use of:

• agency management systems

• accounting platforms

• compliance platforms

• employee benefits quoting and management platforms

• carrier rating/submission platforms

• chatbots

• CRM platforms

• cybersecurity compliance vendors/platforms

• data analytics platforms

• digital payment platforms

• e-signature platforms

• IT/Managed Service Providers

• lead generation

• marketing automation

• mobile apps

• outsourcing

• password management

• phone systems

• personal lines and commercial lines quoting

• reputation management

• sales management

• social media management

• text messaging

• video conferencing

• website development

• agency satisfaction with carrier technology support

• “Getting the most out of the tool” continues to be a significant challenge for agencies. This highlights the problem of technological redundancy and staff change management.

We recommend that agencies evaluate their technology stack for overlapping functions and gaps to maximize technology utilization.

• Applied Systems has moved TAM, Vision, and DORIS to provide only maintenance updates. Agencies still using those platforms should start evaluating the options for their next AMS from Applied Systems or other vendors.

• More agencies are using Marketing Automation platforms (with a 15% increase year-over-year) for email and text marketing, prospecting, client retention, pre-renewal processes, cross-selling, and up-selling.

• Reputation Management tools saw a slight increase from last year’s report. Leveraging and implementing a reputation management strategy can help agencies generate online customer reviews, which help can drive more people to their websites for more information.

• Cybersecurity is a weak point for agents and needs to be a priority to remain trusted data stewards.

• Data Analytics tools are underutilized as well, and with more strategic insights, agencies can make more informed business decisions that improve overall efficiency and performance.

• Development and use of Commercial Lines

Quoting/Rating platforms are growing, with 25% of respondents utilizing at least one of these solutions. As the number of carriers and lines of business increases, adoption will continue to grow.

• As new technology tools such as generative AI continue to develop, many of the tech solutions mentioned in this report are expected to experience significant improvements in the coming years. Catalyit will be paying close attention to these developments.

Visit www.catalyit.com to download your copy of the report to see all the results, explore the latest insights and learn what the data means for independent agencies.

> Matt Banaszynski, CEO, IIAW

• Small ice cubes

• 1/4 cup blackberries, plus 1 blackberry for garnish

• 2 tablespoons mint leaves, plus 1 mint sprig for garnish

• 1 tablespoon sugar

• 1 1/2 ounces bourbon

1. Fill a rocks glass halfway with ice cubes. In a shaker, combine the 1/4 cup of blackberries, mint leaves, sugar, bourbon and 1/3 cup of ice cubes and shake well. Strain the drink through a course sieve, pressing on the solids. Garnish with the blackberry and mint sprig.

The source of the data presented was gathered from the Catalyit Tech Stack Survey in 2023.

How many technology platforms does your agency use?

What stage of using technology presents the biggest challenge?*

Most Used

An AMS is vital for managing daily operations, tracking client interactions, policy administration, and tracking marketing and sales activity An AMS offers a unified platform for workflow management and data analytics The key decision is which AMS platform best fits the agency’s needs Applied Epic is the most popular system Applied, Vertafore, and HawkSoft dominate the market HawkSoft is a cost-effective option for smaller agencies

The utilization of an agency management system has a direct impact on how easily an agency's customer information can be located, reported on, and transferred The absence or poor usage of the system can impact the efficiency and the transferability of an account, which will directly impact the agency's transition costs, confidence in the information, and the expected ongoing performance.

A DEEPER DIVE: Most Used by Agency Revenue (2023 vs 2022) Total Revenue Top 3 Platforms Used*

Less than $500K $500K to $1MM $1MM to $2MM $2MM to $3MM $3MM to $5MM

EZLynx (Applied): 25%

22%)

11%)

27%)

Vertafore - AMS360: 22%

22%)

Vertafore - AMS360: 34%

27%)

12%

INSIGHTS

7

Most Used

Marketing automation platforms streamline marketing efforts, 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 Applied Marketing Automation, Agency Revolution, and Levitate are the top three platforms in this category Investing time to set up these platforms will ultimately save time and money, streamlining your marketing efforts and boosting efficiency offers a helping hand. www.wnins.com

Marketing helps an agency focus on its growth goals by targeting their most profitable customers, staying connected, communicating their value, developing a niche or line of business, and the ability to measure results and make d ata-driven decisions. As with any investment, if not implemented and utilized consistently and effectively, it can become a cost center and hurt the value of the agency.

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