Independent Insurance agents are again on the rise. See below for a quote.
The story goes that technology forced consolidations in the 90s. Brokers needed scale and capital for SYSTEMS and batteries of tech priests to keep server rooms humming.
Today Automation is shaving all that infrastructure down to a rump. For many, an iPad takes care of 95% of what they need to do at work. The rest are either analysts, for whom a golden age of data has dawned, or middle-skilled system jockeys. The latter always glancing over their shoulders at aforementioned, all-consuming Automation.
Key findings of the study, which is is sponsored by Future One, a collaboration of the Independent Insurance Agents & Brokers of America (the Big “I”) and independent agency companies, include:
- The number of independent agencies has grown. After declining from 44,000 in 1996 to 37,500 in 2006, the number of independent agencies has grown to 38,500 in the past two years.
- Business conditions for independent agencies improved between the 2010 and 2012 studies. In 2012, 60 percent reported increased revenue, compared to 42 percent in the 2010 study.
- Systems and data security are now the most important technology challenges facing agencies.
- Agencies are beginning to use the Internet more to obtain new customers. About 25 percent use Facebook to keep in touch with prospects, and 20 percent use LinkedIn.