ARTIFICIAL INTELLIGENCE AND THE FUTURE OF THE INDEPENDENT AGENT

What would you say is the most prominent theme throughout human history? Most people argue that conflict or culture defines humanity. Still, when we examine the entirety of human existence, we see one central point that outshines the rest: Advancement.

Each age of humanity has been defined by an innovation that changed the course of history forever. Whether it be the wheel, the invention of steel, or the internet, humans seem determined never to settle for their current reality and are always rushing towards that next defining moment.

We believe that the next defining moment is already here, and it has come in the form of artificial intelligence (AI). The floodgates are open, and in as little as five years from now AI will likely have significantly altered how we live and work. So what does this mean for insurance agents? Well, if history has taught us anything it is that those who properly implement innovative technologies are rewarded, and those that don’t either fade into obscurity or serve as a cautionary tale for why you shouldn’t blindly charge forward into uncharted territory.

In this article, we explore how the emergence of AI could impact independent insurance agents and make the case for why agents should work to carefully implement this technology into their agencies’ operations.

First Things First

The burning question that professionals of all stripes are asking themselves is “Can AI do my job better than I can and will it make my role obsolete?”. Insurance agents are not immune to this line of thinking, but thankfully it is unreasonable to assume that machines will eliminate the need for human agents. Most consumers are not experts on the different types of coverages available and defer to the expertise of an insurance agent when navigating the buying process.

While AI tools such as ChatGPT do a great job scouring the internet and organizing information to answer a question, purchasing insurance requires trust, and consumers trust that their agent is qualified and capable of advising them on their potential risks and securing the right coverage for their needs. That level of trust is not easily transferable to an artificial machine (do you prefer navigating an automated customer service menu or speaking with a live person?), especially considering the nuance required to properly advise and service a client. As such, it is highly unlikely that consumers would ever prefer their risk profile to be assessed and managed by a programmable machine instead of a real person.