The landscape, common myths
and how to prepare for the future
By Alexis Cierra Vaughn
Let’s be honest: When we first heard the term “insurtech,” many of us in the independent agency arena got a little nervous. We pictured a tech-driven takeover all about disruption, automation, and replacing the old ways with faceless algorithms.
Time and experience have led us to a point where we can set the record straight: Insurtech isn’t here to replace us, it’s here to revolutionize the way we do business. Industry professionals who lean in rather than resist will lead the charge toward a smarter, more efficient, and customer-friendly industry.
Insurtech is not about disruption for the sake of disruption; it’s about innovation that simplifies our jobs and strengthens our businesses. It’s about balancing ambition with responsibility. With that understanding, we need to find ways to leverage insurtech to our advantage and modernize an industry that needs to attract top-tier talent for the next generation, especially as we prepare for what many view as an impending talent crisis.
APIs and AI and MGAs, oh my!
Legacy systems have been the backbone of our industry for decades. They’re reliable, but let’s be real: They’re also clunky, slow, and outdated. We’ve also been accused in this industry of having legacy thinking—also reliable, but at the same time, perhaps, clunky, slow, and outdated.
The future of insurance isn’t about scrapping everything overnight; it’s about strategic integration that makes sense for your business. For instance, as we move forward from legacy systems and thinking:
- APIs bridge the gap between old and new systems, letting insurers modernize without a complete overhaul.
- Automation and artificial intelligence (AI) streamline underwriting, claims, and customer service, so agents can spend less time on paperwork and more time building relationships.
- Regulatory compliance remains a challenge, but it should not be an excuse to avoid innovation. Compliance should evolve with the technology, not against it.
The key takeaway? You don’t have to burn down the house to remodel it. Smart, phased adoption of new tech can position you for long-term success.
Insurtech is not about disruption for the sake of disruption;
it’s about innovation that simplifies our jobs and strengthens
our businesses. It’s about balancing ambition with responsibility.
The key takeaway? You don’t have to burn down the house to remodel it. Smart, phased adoption of new tech can position you for long-term success.
Insurtech activity is not the exclusive purview of carriers, though. Managing general agents (MGAs) have for years played a key role in distribution, but insurtech MGAs are changing the game. They blend deep industry expertise with digital-first solutions, allowing agents and brokers to work faster and more efficiently.
- Traditional MGAs focus on niche markets and bring specialized underwriting knowledge.
- Insurtech MGAs take that expertise and supercharge it with AI, automation, and data analytics to speed up decision-making and enhance customer experience.
Why does this matter? If you’re an agent or broker, these MGAs can deliver access to cutting-edge products similar to what you would get with a traditional carrier, but often with value-added services, risk management solutions, and tech-enabled features included. Many agents and brokers find them to be a secret weapon for scaling their business.
Empowered, not replaced
Let’s put one of the biggest misconceptions to rest once and for all: Insurtech isn’t here to take your job; it’s here to make it easier. Whether working within a carrier, an MGA, or leveraging solutions built specifically for agents and brokers, insurtech is designed to support, not replace, your role.
If you’re still skeptical, let’s take a moment to bust a few myths:
- Myth 1: Digital tools will make agents and brokers irrelevant. Reality: Digital solutions free up time for relationship-building and strategic advising—two things that technology can’t replace.
- Myth 2: My clients prefer traditional methods and won’t use insurtech. Reality: Clients expect convenience—the Amazon experience. The best service is a mix of tech-enabled efficiency and human expertise.
- Myth 3: Insurtech platforms benefit only direct-to-consumer models, not agents and brokers. Reality: Many insurtech platforms are designed specifically to help agents and brokers streamline workflows and increase revenue.
- Myth 4: Adopting insurtech is too expensive for agencies.Reality: Many insurtech tools are scalable, allowing even small agencies to start with cost-effective solutions and grow as needed. They even welcome your feedback as they develop the tools. Become an early adopter of their tech, and you could win big for your agency.
Agent and broker insurtech playbook
Many agents and brokers are finding success engaging insurtech-developed tools to enhance their business. Are you ready to join them? Are you ready to future-proof your business? Are you ready to thrive in a digital-first industry? Here are some practical ideas on how you might do it:
- Develop a digital-first mindset.
- Stay informed about emerging trends.
- Foster a culture of adaptability.
- View innovation as an opportunity, not a threat.
- Use tech to work smarter, not harder.
- Automate time-consuming tasks like policy renewals and customer follow-ups.
- Implement digital document storage and e-signatures.
- Consolidate your systems to minimize inefficiencies.
- Elevate the customer experience.
- Offer digital self-service options for clients who want convenience.
- Use AI chatbots for instant customer support on your website.
- Make mobile access a priority; customers expect it.
- Partner with insurtech innovators.
- Use AI-driven risk analysis tools to offer proactive solutions.
- Leverage data analytics to personalize client interactions.
- Work with insurtech MGAs to expand your product offerings.
The future belongs to the bold and innovative
The bottom line is that the industry is changing, and there’s no stopping it. The good news is that you don’t have to fight insurtech; you can lead with it. Agents and brokers who embrace these tools will provide better service, increase efficiency, and grow their businesses faster than ever.
Numerous resources exist that can help agents and brokers. Look to groups like BrokerTech Ventures, 101 Weston Labs, ITC Agents & Brokers, Insurtech America communities in Atlanta, Hartford, Chicago, the Carolinas, and Florida, and other regional initiatives, including those in Utah, New York, Miami, and Ohio. Agency, broker, and specialty networks, as well as management system and other vendors, also bring resources to the table.
Thinking bigger? Maybe you’ve created a solution that could work for peers. Consider becoming an insurtech leader yourself. You already understand the industry’s pain points; why not be the one to solve them?
The insurance game is evolving, and the question is: Are you evolving with it? Those who embrace technology will lead the next generation of the insurance industry, while those who resist will struggle to keep up. Or even stay around.
So, what’s it going to be? Will you step into the future of insurance distribution or get left behind?
The author
Alexis Cierra Vaughn is a bestselling author, professor and founder and CEO of Off Course Consulting, a strategy consulting firm for startups, businesses, and the insurance ecosystem. For more information, visit offcourse.ai.
