Insights from the Agent for the Future Advisors on resilience, innovation, and opportunity

The insurance industry is entering a year of transformation, with 2025 offering both challenges to overcome and opportunities to embrace. As the hard market begins to ease, many agencies are shifting their focus back to growth and exploring how technology can accelerate that journey. From advancements in AI to the rise of virtual assistants and evolving leadership trends, these predictions from the Agent for the Future (AFTF) Advisors highlight what’s ahead for independent insurance agencies.

Technology Drives Growth in 2025

Technology is set to play a central role in 2025. Manny Barbosa notes that as the hard market eases, agencies will focus on tools that improve efficiency and optimize sales pipelines. “AI-enabled technology will be in high demand, helping agencies identify cross-sell opportunities, segment clients effectively, and close business faster,” he explains. According to the Liberty Mutual 2024 Agent-Customer Connection Study, 64% of agency principals are already interested in exploring how AI can improve their business operations.

While the potential for AI is immense, it comes with risks. Dale Steinke highlights that the rush to adopt AI tools often leaves agencies vulnerable. “Many agencies are using AI without proper safeguards in place, which can expose them to cybersecurity and data privacy risks,” he warns. Steinke recommends that agencies take proactive steps, such as consulting with peers or leveraging AI itself, to implement responsible usage policies and safeguard their businesses.

Efficiency and Innovation Take Center Stage

Operational efficiency will also be a key focus, with virtual assistants playing an increasingly prominent role. “Virtual assistants are becoming game-changers for independent insurance agencies,” says Stacie Cooper. These tools handle repetitive tasks like data entry, scheduling, and responding to basic customer inquiries, allowing staff to concentrate on higher-value activities. Cooper predicts a significant rise in the adoption of virtual assistants in 2025 as agencies look to work smarter and more efficiently without sacrificing service quality.

Leadership trends are evolving as well, with Shannon Chatman emphasizing the growing impact of generational and gender diversity. “As Gen Z enters the workforce and Millennials take on management roles, we’ll see more women stepping into leadership positions,” she predicts. Chatman highlights that women’s strengths in fostering innovation and maintaining ethical standards make them uniquely suited for leadership. Mentorship programs and educational opportunities, she adds, will be crucial in supporting this transition.

Preparing for a Resilient Future

Employee wellness is another area gaining attention. Chatman notes that burnout from the hard market has made flexibility and well-being priorities for agencies in 2025. Offering remote work options, flexible schedules, and support for mental health will be key to attracting and retaining top talent in a competitive labor market.

As independent agencies prepare for 2025, these predictions serve as a guide to navigating a rapidly evolving industry. The year ahead presents a chance to embrace change, adopt smarter solutions, and build a foundation for long-term success. By focusing on innovation, efficiency, and leadership, agencies can position themselves to not only meet the challenges of the future but also thrive in it.