What are the strategic priorities for agency leaders in 2025 and beyond? What are the drivers behind those big initiatives? And what hurdles are they striving to overcome? These and other questions were the subject of new ReSource Pro research focused on understanding the initiatives independent agencies are actively pursuing to position themselves for success.
In everyday operations, agency owners and senior executives have a wide range of strategy options – both business and technology-related – to choose from. Many initiatives can be traditional, like new carrier partnerships, improving operational efficiencies, extending sales into new lines, or upgrading agency management systems. Others are newer and more transformational to the business, such as partnering with insurtechs or capitalizing on new models like parametric or usage-based insurance. Knowing where to focus investments and resources for the most ROI can be a tough challenge, particularly for agencies with fewer than 25 employees. Larger players, however, face their own set of challenges in this area as well.
What our research found is an overwhelming consistent theme across agencies of all sizes – a heightened focus on efficiency and productivity. Agency leaders recognize that improving productivity and operational efficiency is critical to achieving their strategic goals and remaining competitive. In addition, many of the larger agency groups that have grown significantly through acquisition are now concentrating on optimizing their enterprises. This is evident as business intelligence and insights initiatives are pursued by 95% of large agencies (with over 100 employees) and 78% of smaller agencies (with fewer than 100 employees). These insights are becoming crucial tools for enhancing agency performance, strengthening client relationships, and laying the groundwork for automation and AI.
Beyond this, many agencies are focusing on documenting, standardizing, and redesigning processes to enhance efficiency and productivity. Clear and consistent procedures across the organization help streamline operations, boost employee efficiency, and provide a smoother client experience. Additionally, optimizing workflows before implementing automation or AI initiatives ensures that existing inefficiencies are resolved, allowing for more real transformation in operational processes.
Our recommendation to agencies is to concentrate on what we call digital readiness. This entails the process optimization highlighted in our research, plus improving data accuracy and organization, and modernizing systems. There are great opportunities for agencies of all sizes to leverage AI based solutions, but the full value will only be realized when these foundational activities are more advanced.
Our research report, “The Future of Independent Agents and Brokers” is available to current advisory clients. Visit our Insights page to access the full report for agency leaders preparing to navigate rapid transformation, optimize operations, and redefine value for the next generation of clients.
