'GETTING THE MOST OUT OF THE TOOL' IS THE TOP TECH CHALLENGE FOR INDEPENDENT INSURANCE AGENCIES

Will Jones

IA Editor in Chief

As agency revenue increases, so does the challenge of getting the most out of the tool, rising from 62% of agencies that generate $500,000 to $1 million up to 76% of agencies that generate between $3 million and $5 million.

Recently, Catalyit published “The State of Tech in Independent Insurance Agencies." By partnering with 25 Big “I" state associations, Catalyit surveyed independent insurance agencies across the country to learn about their current tech stack, as well as what they think about the effectiveness and appropriateness of each tool.

The report surveyed agency staff from a spectrum of businesses that varied in terms of the number of employees from 1 to 100 and total revenue from less than $500,000 to more than $5 million. It covered both the amount of usage and satisfaction of tools that independent insurance agencies use every day. Nearly 500 agencies participated in the survey.

"Technology is no longer just a backroom activity that keeps computers running," the report said "Tech is a profit center. What software agencies use, what tools, integrations, processes, and data agencies harness are all critical in driving profit. With the right tech, your agency will thrive."

While the possibilities are virtually endless for agencies to supercharge their business with the right technology and, more specifically, the right combination of technology, agents are facing a number of challenges.

As an agency grows, the average number of technology platforms they use increases. Agencies with less than $500,000 in revenue use an average of 6.2 platforms, which rises to 8.9 for agencies that generate $1 million to $2 million, and 11.7 for and more than $5 million in revenue, according to the report

However, scaling provides unique technological challenges. Between “finding the right tool," “implementing the tool," and “getting most of the