Benchmarking Agent Attitudes on AI: Key Takeaways from the 2024 Agent-Customer Connection Study

As artificial intelligence (AI) becomes more widespread in insurance and beyond, independent insurance agents are starting to explore what AI means for their agencies.   

Agents are early on in this process – very few have developed strategies to effectively use AI tools, and many are worried about how AI technology will impact their work.  

To better understand how agents are thinking about and implementing AI in their insurance agencies, the research team at Liberty Mutual and Safeco Insurance surveyed 1,133 independent insurance agency leaders and team members and 1,110 insurance consumers for the 2024 Agent-Customer Connection Study. 

This report explores key takeaways from the research on how agents view AI, how AI will help agents meet rising customer expectations, and the potential of AI in insurance agencies. This marks the beginning of a multi-year exploration of AI in insurance agencies and serves as a benchmark for agent attitudes and usage of rapidly advancing AI technologies.  

This report is part of a larger body of content and resources from Agent for the Future to help agents better understand AI, explore practical use-cases, and usher in the next generation of AI adoption in insurance.  

Key findings: Agents are interested in AI, but skeptical 

AI tools have been used in insurance for years for aspects of underwriting, claims management and customer service. But in the last two years, innovations in generative AI brought about an explosion of awareness and usage among the general public. Tools like ChatGPT made AI accessible to a wider audience, including insurance agents.   

The full impact of artificial intelligence in insurance agencies remains to be seen. Only 6% of the principals we surveyed said they have already implemented an AI solution in their agency. However, more than one-in-three (36%) said they are likely to be using AI in their business in the next five years.  

Like any transformative technology, AI can be controversial. Our research found that agent sentiment on AI is split. Sixty-four percent of the agency principals surveyed by our research team said they are interested in how AI can improve their business, but only 17% of agents said they trust AI technology, and 27% view AI as a threat.    

As AI technology rapidly advances, many technology vendors are integrating AI into their tools for agents, and more AI-backed tools are popping up in the insurance space. For example, some agency management systems are adding in generative AI tools to help agents develop marketing content and personalized customer communications. Other agency technology vendors are starting to integrate predictive analytics to analyze customer data and predict the likelihood of customers to close or churn. And other tools scan and summarize insurance forms to help with quoting, renewals and claims. 

AI-backed technology tools have the potential to drive efficiency in agencies – cutting the time required for routine tasks and helping agents more effectively pursue leads and communicate with clients. 

AI cannot replace the value that independent insurance agents bring as expert risk advisors, but it is driving change in how agents deliver that value. Previous Agent for the Future research found that agents who are willing to evolve and invest in innovative technology grow faster than other agencies.

Insurance agents that take the time to understand AI and explore practical use cases for their agencies will be better positioned to succeed in the future, while those who ignore or avoid AI will likely fall further behind their competitors.  

Agents want to spend more time on growth, but expectations for customer service are high  

Insurance agents are busy, and our research has consistently found that they want to spend less time on routine tasks and more time on human-centered tasks that grow their businesses.  

In the inaugural Agent for the Future research survey in 2017, agents said they wanted to focus more time on finding new business and less on retention and servicing clients.  

Seven years later, these sentiments have remained consistent. The 2024 Agent-Customer Connection Study found that agents want to spend more time prospecting for new clients, cross-selling, quoting new business and giving back to their community. Agents want to spend less time on administrative tasks, responding to the service needs of existing clients, and working on retaining clients.  

While agents want to spend less time on service and retention, the rise of technology has set new baselines for customer service and communication. Insurance customers now expect 24/7 access, quick responses and tailored communication.  

Our research found that 77% of independent insurance agency customers said it’s very valuable or critical for an agent to be very responsive to their requests, and 67% said they want their agent to be proactive about knowing their needs. Thirty-nine percent of customers say the ability to contact an agent 24/7 would make them more likely to work with a particular independent agent over another. 

Agents see the potential for AI to save time and improve service 

While the way agents want to spend their time has not changed since we began surveying agents, the technology has. AI-backed tools have the potential to help agents save time on routine tasks, enhance prospecting and sales, and meet customer expectations.  

Chatbots magazine estimates that AI-powered chatbots have the potential to save businesses up to 30% in customer support services. A study by Section found that professionals who are adept at working with AI save up to 12 hours of their time at work each week by using AI. And research from Harvard Business School found that consultants who used generative AI tools finished more tasks faster and with better results than those who did not use AI.  

Our research found that agents are aware of how AI could help them optimize their growth tactics and save time. Fifty percent of agency principals said AI can make their business more efficient, and 43% said using AI will help their customers and help grow their business in the future. 

“I’m still learning a lot about the impact that AI will have,” said one of the agents we surveyed, “but from what I’ve learned so far, it could revolutionize the way we service clients and bring many new efficiencies to our service platform.” 

When asked about the ways they see leveraging AI in their business, agency principals listed identifying opportunities for cross-selling, automating routine service tasks and assisting in marketing content creation at the top.  

Agents have low levels of trust in AI technology 

While agents are interested in the potential of AI, agent sentiment is split on whether AI poses more of an opportunity or a threat for independent agents. Twenty-five percent of the agents we surveyed said AI is more of an opportunity, and 27% said it’s more of a threat. The remaining half were caught somewhere in-between, with many saying they are still learning about AI.  

Those who view AI as an opportunity say it can save staff time, streamline agency marketing and ultimately enhance the agent-customer connection. Those who view it as a threat cite possible E&O exposures and worry that AI is trying to replace the agent role. 

Our research also found that agents are skeptical about the trustworthiness of AI technology. Agency staff are more skeptical about the potential of AI than agency leaders. Only 22% of agency principals and 14% of agency staff say they trust AI technology. Even fewer say they trust AI with their business or customer data. Nearly one in three agents say they are unlikely to implement AI into their business practices in the next five years, citing a lack of trust and concerns about data privacy as the top reasons.  

Concerns about AI accuracy and data privacy are warranted. AI tools are not always good at knowing their own limitations, and generative AI tools such as ChatGPT have been known to “hallucinate,” creating inaccurate or nonsensical responses. Free AI tools are not transparent with their data sources and how they use the information that users enter. Human oversight of AI tools is essential, and best practices dictate that users should never enter personally identifiable information into free, public AI tools.  

AI adoption in insurance agencies is still low, but will likely accelerate in coming years  

While interest in and conversations around AI abound, AI adoption is still low in insurance agencies. Only 6% of the principals we surveyed said they have already implemented an AI solution in their agency.  

For now, many agents are in the exploratory phase of AI adoption, with 20% saying they are starting to learn about AI and identify opportunities and 27% saying they are interested in AI, but it’s not currently a priority. Forty-five percent of the agents we surveyed said they don’t know enough about AI to make business decisions about the technology.  

However, AI use in agencies is set to increase in the coming years. More than one-in-three (36%) of principals said they are likely to be using AI in their business in the next five years. 

In the near future, embracing AI may be key to attracting and retaining the next generation of talent. According to research by Adobe, Gen Z (those born between 1997 and 2012) is using AI more than any other generation. And PwC found that 70% of people between the ages of 18 and 25 say that generative AI gives them opportunities to expand their capabilities.  

AI is an enhancement, not a replacement  

“Will AI replace agents?”  

This question comes up in nearly every conversation about artificial intelligence in the independent insurance agency channel.  

Predictions about technology replacing insurance agents have abounded for decades, yet, independent agency market share has held steady throughout technology shifts and challenging market cycles.  

Insurance is complex, and buyers often prefer to talk to a human about their unique risks and coverage needs. Our research shows that insurance customers value the expertise and human touch that agents bring. Sixty-eight percent of the consumers we surveyed say they prefer to have the advice of an expert to make the best decisions, and 70% said they spend their money with local small businesses whenever possible.  

AI cannot replace human-to-human relationships, but it can handle routine back-end tasks so agents have more time to spend on building relationships, interacting with clients and giving back to their communities.  

To paraphrase a sentiment expressed by experts in many industries, “AI won’t replace agents, but agents with AI will replace agents without AI.”  

Next steps to explore artificial intelligence for your insurance agency  

1. Get familiar with AI terms and definitions.

2. Sign up for a free account with an AI tool like ChatGPT and test the capabilities of generative AI.  

• A few ideas: Ask it to help you plan a holiday party, write posts for your agency’s social media, or help you plan the agenda for an upcoming meeting
• Check out the Big I’s AI marketing toolkit for resources on writing effective AI prompts.

3. Set aside time for an open conversation with your agency team about AI usage in your agency

• What does your agency staff think about AI? Have any of your team members experimented with using AI for personal or work use? Do they think it could save them time on routine tasks?