Digital Adoption Is Changing the Landscape of the Insurance Industry

Digital report intro

To thrive in the future, agencies must adopt digital ways of doing business.

Today’s consumer expects a streamlined digital experience throughout the customer journey. Liberty Mutual research in 2019 showed that more consumers were turning to digital channels to learn about agents, purchase insurance and get service on their policies. Since then, consumer expectations have only grown, especially after COVID-19 disrupted traditional ways of doing business.

The Rise of the Digital Insurance Agency report examines the business value of digital and distills key trends into actionable insights to help independent agents and brokers navigate the rising tides of digital.

Liberty Mutual and Safeco Insurance surveyed nearly 600 independent agents and brokers to learn about the digital capabilities they use, the business value those capabilities provide, and what their digital priorities will be in the next year.

This report introduces the Agent for the Future Index, a quantitative assessment of the state of digital transformation in the independent agent channel.

To better understand the variation of digital adoption across the independent agent channel, respondents were broken out into three groups – low, medium and high digital adopters.

Each group was then scored on a 10-point scale based on the number and complexity of the digital tools their agency used. Agencies classified as low digital adopters scored an average of 2.76 while high digital adopters scored an average of 6.76.

Agent for the Future Index

How high and low adopters scored on digital capabilities
High digital adopters
Low digital adopters

These scores show the broad range of how different independent agents use digital and highlight a significant opportunity for all agencies to more fully embrace digital capabilities.

This report digs into some of the key findings from the survey and reveals the seven digital capabilities that drive the most growth.

Key findings:

  1. Agencies that are high digital adopters are more likely to be high-growth agencies
  2. Marketing will hit its tipping point in the transition to digital in 2021
  3. Video remains a largely untapped opportunity for IAs
  4. Digital agencies can invest more in the customer and employee experience

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