Utilizing technology in small agencies to your advantage

For any small insurance agency, deciding to make the investment in technology is a risk. Technology has changed the insurance game, and small agencies can benefit from having sophisticated, yet simple technology embedded in their culture from day one.

Highlights:

•What is technology in the insurance industry and what can it mean to a broker, especially a small agency?

•Keys to success when leveraging technology in small agencies

•Technology in the small agency sphere•Differences in line of business

Why tech?

In recent years, technology has become a catch-all buzzword used to describe anything that has to do with science, with a computer, that has an electronic connection, or even runs on batteries. But what is technology in the insurance industry and what can it mean to a broker, especially a small agency?

Technology in the small agency sphere

Having a technology solution at your agency can help level the playing field. “You’ll be able to play with larger agencies,” says Metz. “People are drawn to hometown brokers – a broker that lives in your community and that has a hands-on relationship, but can do the same things as a large regional or national brokerage.” People like having the dedicated attention of a business owner and don’t like feeling like everything is automated.

Differences in line of business

As you may have guessed, technology varies between benefits and property and casualty lines. Benefits agencies tend to take advantage of technology more right now, but property and casualty brokers are catching on and beginning to provide such solutions to their clients as well.

Is technology right for me?

Firms that are utilizing technology solutions typically have a desire to swim upstream and write larger and better accounts. They need technology to level the playing field between them and the larger brokers and want to be perceived as larger. Agencies that are trying to move to a value-based model and provide value-added services are also a good fit for technology

Benefits

“On the benefits side, client size will dictate the types of tools that are considered and eventually implemented,” says Metz. All solutions are not a fit for all agencies, and an agency owner needs to determine which types of technology is a fit. “It’s mission critical versus opportunity critical,”