For the last several years, there has been a pretty common prediction about the insurance industry.

Something was always right around the corner that was going to eliminate the insurance broker.

A new consumer survey suggests something different is happening.

According to research commissioned by the Independent Insurance Agents & Brokers of America, 87% of consumers say having a human insurance agent is important when making insurance decisions. The national survey included 400 consumers.

I found that interesting, not because I think technology is a threat to insurance agents, but because what consumers said next.

They don't want agents to ignore technology.

Consumers Want The Agent And The Technology

According to the survey, 61% of consumers would prefer an agent who uses artificial intelligence to help tailor coverage and speed up the insurance process.

About two-thirds viewed AI positively when it was being used to find potential coverage gaps, answer questions faster or improve customer service.

That's a pretty important distinction.

Consumers aren't necessarily asking AI to replace their insurance agent.

They're asking their insurance agent to use it.

I think that's where some people in our industry are getting this conversation wrong.

There are agents who look at AI and immediately see something that's coming for their job. Others seem to think putting an AI chatbot on their website suddenly makes them a technology company.

Neither one makes much sense to me.

Use the technology where it makes you better.

If AI can summarize a policy, compare information or eliminate an hour of administrative work, use it. If technology lets you answer a customer in five minutes instead of tomorrow morning, that's an improvement.

Then spend the time you saved doing the part of the job that actually requires you.

Claims Tell Us A Lot

One of the most interesting findings in the survey involved claims.

A little more than half of respondents preferred dealing with a human agent when filing a major claim involving something like an accident or storm.

Only 6% said they were comfortable relying entirely on AI in that situation.

That shouldn't surprise anyone who has actually dealt with insurance customers.

Buying insurance when nothing is wrong is one thing.

Having a tree sitting in your living room is different.

The customer doesn't want to argue with a chatbot. They want somebody who understands the policy and can explain what happens next.

This is where I think the value of an insurance agent is becoming easier to see.

It isn't filling out an application.

Technology can do that.

It isn't reading somebody a premium from a computer screen either.

Customers can find prices themselves.

The value starts showing up when something isn't obvious.

Which coverage matters? Why did underwriting decline this risk? Is the cheaper policy actually comparable? What happens when a carrier suddenly changes its appetite?

AI can help answer some of those questions.

Experience still matters when deciding what to do with the answer.

This Should Also Be A Warning To Agents

There is a temptation for insurance agents to look at the 87% number and declare victory.

I wouldn't.

The same survey found that 38% of consumers believe AI will be better at serving insurance customers five years from now. Another 21% expect little real change, while 26% think AI will make service worse.

That's not exactly permission for the industry to keep doing business the way it did in 2005.

Consumers want faster responses. They want easier communication. They don't want to wait two days for somebody to answer a basic policy question.

And they shouldn't have to.

The survey found that 19% said faster responses would make them more likely to stay with an agent. Personal relationships came in almost identical at 18%. Consumers also mentioned better pricing, mobile or text communication and policy language that's easier to understand.

There's a message in there for agents.

Being human isn't enough.

You still have to be useful.

The Job Of The Insurance Agent Is Changing

I've been thinking about this quite a bit lately because the amount of information available to insurance agents has exploded.

The problem is figuring out what matters.

Carrier appetite changes. Underwriting moves. Rates move. Medicare plans change benefits and networks. New regulations come out. Markets that were attractive six months ago can look completely different today.

Technology should make understanding those changes easier.

That's one reason we're seeing more interest in insurance market intelligence and tools that organize underwriting, rate and market information instead of simply giving agents another place to find a quote.

But the tool isn't the final product.

The decision is.

A calculator can give me a number. It can't necessarily tell me whether the number makes sense for my client.

That's where I think the agent survives.

The Agent Who Refuses Technology Has A Problem

There are really two different questions being mixed together whenever we talk about AI replacing insurance agents.

Can technology perform many of the tasks insurance agents currently perform?

Absolutely.

Can technology replace every reason a customer uses an insurance professional?

This survey suggests consumers don't believe we're there yet.

That doesn't mean we never get there.

Insurance agents shouldn't assume the relationship protects them forever.

The repetitive parts of this business are going to continue disappearing. Applications will get easier. Quoting will become faster. AI will answer more routine questions, and consumers will become increasingly comfortable using it.

Good.

I don't want an insurance agent spending half the day doing work a computer can finish in 30 seconds.

I'd rather have that agent researching a difficult case, talking to a carrier or helping somebody understand a decision that could affect them for years.

Maybe AI Makes Good Agents More Valuable

That's the part of the AI discussion I find most interesting.

We keep asking whether artificial intelligence will replace insurance agents.

Maybe that's the wrong question.

The better question might be what happens when a good insurance agent suddenly has technology that allows one person to do the work that previously required several people or hours of research.

The answer could be fewer agents.

It could also mean substantially better agents.

The survey gives us a clue about what consumers expect. They aren't rejecting technology. In fact, most respondents preferred an agent willing to use AI to improve the experience.

They just don't want the human being removed from the equation.

At least not yet.

For independent agents, I think that's a pretty good opportunity.

Use AI. Automate what doesn't need your attention. Get faster.

Then make sure the part of the job that remains is something a customer would actually miss if you were gone.