Top trends and tools for independent
agencies to stay competitive in 2025
By Jace Hopper
Independent insurance agencies are under increasing pressure to balance exceptional client service with efficient operations. With more demands for their time, agents are seeking technology solutions that are powerful, easy to use, adaptable, and seamlessly integrate with existing systems. Increased collaboration between insurtech firms will be driven by agents’ demands to meet market needs.
In 2025, agencies will prioritize tools that simplify day-to-day operations, allowing them to focus on client relationships and stay competitive in an increasingly complex industry.
To stay informed, examine the strategies and tools shaping the future of independent insurance agencies.
Tech optimization: Key tools for 2025
Independent agents are increasingly looking for solutions that can transform how they operate, connect with clients, and plan for growth.
Here are three standout trends and solutions to help you prioritize success this year:
- Insurance knowledge database. The insurance knowledge database—a long-trusted tool in many agencies—was the surprise star tech of 2024. In a recent Vertafore study, 63% of insurance professionals ranked insurance knowledge databases as the solution they relied on most to manage through the hard market. The need for up-to-date industry knowledge will continue into 2025 as agencies navigate a “multi-speed” marketplace. And for good reason.
By simplifying research and providing on-demand resources, these tools enable agencies to expand into new lines of business and strengthen client relationships. In areas where carriers are changing their appetites, knowledge databases give agencies access to the most current marketplace information to advise their clients. Finally, insurance knowledge databases help new staff get up to speed—a key benefit as agencies grow or need to backfill positions as experienced professionals eye retirement.
In 2025, agencies can continue to capitalize on this power by using solutions that incorporate into their everyday workflows. Insurance professionals will get the most benefit from knowledge that’s connected to their other core systems, providing the information they need when and where it is most useful. Ultimately, incorporating the knowledge into agent workflows will drive better decisions and enhance efficiency.
- Sales automation software. The right tools help agencies connect with clients and operate efficiently in a competitive landscape. Sales automation makes this possible by providing insights into client activity, real-time coordination, and actionable analytics.
With a focus on automation, agencies can streamline communication through standardized workflows that ensure consistency and strengthen brand messaging. As new talent enters the workforce, sales automation solutions optimize onboarding and training, helping new team members ramp up quickly. Lastly, a sales automation tool provides detailed reporting that equips leaders to plan strategically and drive growth through data-driven decisions.
By fostering timely, personalized interactions, sales automation empowers agents to strengthen client relationships and deliver the communication and support clients expect.
- Vendor relationships. As agencies continue to add to their technology stack and leverage technology in new ways, they are turning to vendors who are committed to building long-term partnerships. A technology partner should help through the onboarding process, assist with customizing solutions, and work with agencies to troubleshoot problems.
A good technology partner is invested in an agency’s overall success. They can make recommendations based on extensive experience working with other customers. The right partner will enable agencies to create a customized tech stack that fits their unique needs and workflows. By harnessing this partnership, agencies can maximize their potential in the new year.
Attracting tech-savvy talent
The growing reliance on technology has created a surge in demand for tech-savvy talent on the agency side. Roles like data scientists, IT specialists, and innovation executives are reshaping operations by introducing advanced data analysis, custom technology solutions, and tailored customer experiences.
To meet the demand for tech talent, agencies are increasingly attracting professionals from other sectors. While industry knowledge may take time to develop, these individuals bring fresh perspectives and advanced skills that can help companies drive agility in a rapidly changing market.
Even as the industry evolves, relationships remain key. According to Vertafore’s survey, leveraging personal referrals continues to be the most popular hiring method. Specifically, large agencies rank personal referrals as their top channel for recruiting new talent, and at a level higher than their smaller counterparts.
Whether it’s personal referrals or finding talent from the tech sector, the insurance industry will continue to innovate as technology becomes increasingly important for agency success.
By prioritizing client-centric strategies, insurance agencies
can build trust and lasting relationships with their clients.
Leveraging technology can further enhance this support.
Heightened focus on the user experience (UX)
In 2025, independent insurance agencies will rely on intuitive technology to drive greater operational efficiency. Agencies prioritize integrated systems that simplify workflows, and bring together client management, policy administration, and reporting into a single interface.
A comprehensive view of client data and centralized real-time insights enable agencies to make quick, informed decisions. More than 60% of the workforce is set to retire in the next seven years. A user-friendly interface will better position agencies to train and onboard new staff. It can help everyone stay current with streamlined processes and help talent quickly step into open roles.
Prioritizing UX ensures that technology is accessible to people of all abilities. Inclusive design enables individuals from diverse backgrounds to share the same experience. As technology evolves, accessibility and simplicity will be key drivers for success.
Spotlight on AI
From automating repetitive tasks to improving data accuracy, artificial intelligence (AI) will reshape how agencies operate and interact with clients.
The rise of generative AI will continue to gain attention. Generative AI can support tasks like email generation, transcribing communications, and handling other routine functions. However, generative AI will not replace the human touch. Agents and customer service representatives are vital for building relationships and delivering personalized support. Instead, AI tools can assist agents in daily tasks, freeing up time to allow them to focus on what matters most.
Traditional AI plays a critical role in data analytics and reduces manual data entry. By automating tasks, AI processes large volumes of data quickly. This provides a clear view of agency performance. AI also helps agencies generate detailed reports and insights from their data, making it easier to track trends, identify opportunities, and make informed decisions. With AI, agencies can work more efficiently and focus on high-value tasks.
Tech-savvy hires who understand AI’s potential and limitations will help navigate these changes. AI capabilities will continue to grow, as will opportunities for agencies to leverage it for greater productivity and enhanced client experiences.
Looking ahead
Independent insurance agencies will face an increasingly complex landscape. Key trends such as AI-driven automation, tech optimization, and user-friendly platforms, will be key to an agency’s ability to stay competitive.
At the end of the day, the agent’s key role is to support their client in every way possible. By prioritizing client-centric strategies, insurance agencies can build trust and lasting relationships with their clients. Leveraging technology can further enhance this support. With the right resources, agents can focus more on nurturing relationships and less on manual tasks, leading to better client satisfaction and loyalty. n
The author
Jace Hopper is vice president of product management at Vertafore. He is responsible for simplifying and integrating the platform experience and delivering promises and commitments to meet the needs of customers.
