APPLIED DIGITAL AGENCY ANNUAL REPORT
2021 Digital Technology Adoption Survey: Key Insights
The pandemic changed how agents work.
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The pandemic changed how agents work.
Cloud technology is how 82% of agencies host their software in 2021. Year over year these numbers continue to climb, with an 9% increase of adoption in the past year alone. Companies with revenue of more than $25M are the least likely to use cloud software but still maintain an adoption rate of 60%. Companies of this size continue to move to the cloud, and for good reasons. Hosting in the cloud is more secure than ever and makes working remotely easier for independent insurance agents, an essential feature during a pandemic that kept agents out of their offices.
Cloud technology reigns supreme
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Agencies leaned into their digital strategies.
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Management systems have more to offer.
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Agents aren’t using these types of tech enough.
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This empowers agents and insurers to work better together.
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This untapped resource could provide big insights.
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Customers want 24/7 access and agents listened.
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This year’s digital technology adoption rate among independent agencies is…
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The adoption of mobile applications for employees is on the rise. Up 13% from last year, more and more agencies are giving their employees easier access to essential software needed to run their businesses, like connecting to the agency management system, from outside the office. These applications allow agents to work from various devices and give them more freedom to work from anywhere.
It’s all about mobility
Is your software hosted in the cloud?
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It’s all about mobility
Is your data hosted in the cloud? (YoY)
Is your software hosted in the cloud?
(Percentage responding "Yes" by agency size)
Do you have a digital strategy in place?
(Percentage responding "Yes" by agency size)
Do you have a digital strategy in place?
Having a digital strategy is becoming universal in the insurance industry. 61% of all U.S. agencies that responded to the survey have a digital strategy in place with 85% of agencies focusing on implementing their strategies within one to five years. Across all revenue buckets, the adoption of a digital strategy remains strong. In this year’s survey, the highest adoption rate – 77% – was reported by mid-to-large sized agencies grossing $10M to $25M.
Most U.S. agencies have a digital strategy
Agencies leaned into their digital strategies.
A digital strategy is essential in a digital world
A digital strategy is essential for agencies today. The lasting effects of the pandemic moved more business online and the insurance industry is no different. By focusing on how to use technology to create a competitive edge, agencies can improve how they communicate with their customers and employees, work more efficiently, and most important of all, increase profits. Digital strategies allow agencies to reimagine how they do business through innovation.
A digital strategy is essential in a digital world
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A truly digital agency leverages innovative agency software to provide a better customer experience, increase employee retention and grow the book of business. By using a singular, integrated system, digital agencies operate more efficiently, make better business decisions, form stronger insurer relationships, enhance customer service, and accelerate growth and profitability. The combination of a foundational management system, the cloud, sales and marketing automation software, self-service portals and mobile apps, and data analytics make it possible.
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Do you use a standalone marketing automation application?
Do you use a standalone CRM/sales automation application?
(Percentage responding "Yes" by agency size)
Do you use a standalone CRM/sales automation application?
81% of agencies do not use a CRM/sales automation application and 69% do not use marketing automation. Agencies with revenue of more than $25M are more likely to leverage these types of automation. 63% of the nation’s largest agencies that took the survey use CRM/sales automation and 60% use marketing automation, while only 8% of agencies making less than $1.25M use sales automation and 15% use marketing automation.
The sales and marketing automation runway remains long
Agents aren’t using these types of tech enough.
Only opportunity awaits
Automating sales and marketing can be an integral part of a new digital strategy. By automating these processes, an agency can quickly and easily stand out from their competition. And early adoption of these tools can make significant impact in the market. These capabilities are not reserved for large, high-revenue agencies, they can be advantageous to agencies of every size.
Only opportunity awaits
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Sales automation streamlines an agency’s sales pipeline and helps manage the complete customer lifecycle. Working in tandem with the management system, it provides a singular view of prospects and customers to both sales and servicing staff, making it easier to manage sales and drive higher renewal rates.
When integrated with the management system, marketing automation software helps agents nurture customer and prospect relationships. It combines the power of targeted content with effective marketing email campaigns that can educate target audiences on the latest news and trends related to the insurance industry.
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Do you have a management system? (YoY)
With nearly a 100% adoption, agency management systems are one of the most used pieces of technology in the insurance industry. Despite this high adoption rate and the robust functions management systems are capable of, not all management system capabilities are used to their full potential. Compared to the 92% of agencies that use the system to manage documents and 80% for accounting and financial reporting, the survey found only 26% are using the integrated text features and 33% the integrated market appetite search feature.
Management systems CAN do it all, but agents don’t use it all
Management systems have more to offer.
The must-have tool for a successful agency
Management systems eliminate the complexities of using multiple, disparate systems. They combine the functions of multiple essential programs and applications to become a single, integrated system that is cost effective and highly efficient. They are an indispensable tool that helps agencies manage customer relationships, administer policies and benefits, automate sales, process accounting, and manage documents. Brokers who use this technology enjoy standardized workflows, seamless connection to their insurer partners and the easy discovery of new business opportunities from both current and prospective clients. Agency management systems are the foundation of any successful independent insurance agency.
The must-have tool for a successful agency
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Management systems are a single, integrated application that allow agents to manage and maintain a clear picture of their entire agency across all roles, locations and lines of business, including both P&C and benefits. Easily accessible to any person in the agency, it keeps the front office sales team connected, automates back office operations and integrates with customer service and insurer connectivity technologies. A foundational management system manages all aspects of the agency including both P&C and Benefits; sales automation; market access and quoting; insurer connectivity; data analytics; customer service technology, marketing automation, and more.
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Score by Employee Bucket
Score by Revenue Bucket
Overall Average Digital Score
This year’s survey finds that the rate of digital technology adoption among U.S. agencies is 45%, bringing a year-over-year increase of 2% from last year’s score of 44%.
When considering agency size by revenue, the highest scores were agencies with revenue of $10M–$25M (54%), $5M–$9.9M (53%), $1.25M–$2.49M and $2.5M–$4.9M tied at third (52%). When considering agency size by number of employees, the highest scores were agencies with 50–74 employees (58%), 25–49 employees (57%) and 75–99 employees (56%).
Digital technology adoption grows moderately
This year’s digital technology adoption rate among independent agencies is…
Digital agencies experience greater returns
Digital agencies have the core capabilities needed to manage all sales and servicing workflows, online customer interactions and insurer connectivity, plus open architecture to support easy integration of point technologies to augment automation at each stage of the customer lifecycle.
The right tech stack gives agencies the flexibility to integrate technology applications to increase automation and simplify workflows across all roles, deliver a digital customer experience, and create a competitive advantage. When technology eliminates mundane tasks, agents are free to spend their time generating revenue and servicing clients to foster customer loyalty and increase renewals.
Digital agencies experience greater returns
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Digital agency technology includes a foundational management system; the cloud; sales and marketing automation software; self-service portals and mobile apps; and data analytics. The integrated technology connects agents, insurers, current policyholders and prospects. Key benefits of digital agency technology include more efficient operations, more informed business decisions, better insurer relationships, improved customer service, and accelerated growth and profitability across all lines of business.
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Do you have a client self-service portal? (YoY)
Client self-service portals have seen steady adoption growth year over year. The adoption of client portals increased from 33% to 36%, a 9% increase year over year. The largest agencies are the highest adopters of self-service technology. Agencies with revenue exceeding $25M have a 55% adoption rate and agencies with revenue of $10M–$25M have a 56% adoption rate, while agencies grossing below $1.25M are the lowest adopters at 26%. 29% of all agencies allow their policyholders to submit their applications electronically.
Self-service is on the rise
Customers want 24/7 access and agents listened.
Customers want online access to their policies
An agency branded self-service portal or app gives policyholders the information and resources they need to manage their insurance policies without the help of an agent, anywhere, on any device, anytime of day. They provide an enhanced customer service by giving customers the freedom to initiate policy changes and quote new policies online; view, download and print policy documents; and pay their bills online.
Customers want online access to their policies
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Online customer self-service portals and mobile apps allow policyholders to manage their policies autonomously. When customers have the power to manage their own accounts agents can spend less time with simple, yet time-consuming tasks like taking bill payments, making changes to policies, and sending policy documents. Instead, they can focus on generating revenue for the agency. Not only do agencies that have client self-service experience more efficiency, they also see an increase in customer satisfaction. An investment in client self-service technology and mobile apps quickly pays for itself.
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Currently only 29% of agencies are using data analytics to gain business insights from their management systems. While this adoption percentage is low, the adoption rate has grown more than 100% since 2016 and continues to trend upward. The highest adopters of data analytics are agencies with revenue exceeding $25M at 47%.
Data analytics adoption is slow but steady
This untapped resource could provide big insights.
The powerful potential of data
Knowledge is power and data is knowledge. By leveraging the data that agency management systems are already mining, agencies of any size can benefit by gaining clear insights into the success of their business. Data helps to identify places where the agency can grow and where there is room for improvement, strengthening the entirety of the business. Thanks to developments in technology, it has never been easier to access and leverage data to make more educated business decisions.
The powerful potential of data
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Data analytics take the data from an agency’s management system and use it to give insights into key performance indicators for an agency’s book of business, employee operations and insurer relationships. Data storage is simpler using datalake architecture. It collects data from multiple sources to provide comprehensive analytical insights for agencies with a few clicks. Once this data has been visualized into a dashboard, it can effectively help to identify sales opportunities such as cross or upselling and which customers are most likely to engage.
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Are you a registered user of IVANS Markets? (YoY)
What forms of download do you receive? (YoY)
Download services remain a favorite among independent insurance agents. Most agencies use download for Personal Lines (87%), followed by Commercial Lines (76%), eDocs and Messages (62%), Claims (63%), and lastly Benefits (7%). Usage of download for eDocs and Messages saw the greatest growth with adoption increasing 11% compared to the previous year. Benefits were the only type of download to see a decrease, at 7% compared to 2020’s 11%.
A digital ecosystem better connects agents to insurers
This empowers agents and insurers to work better together.
Digital connectivity is a time-saver
By using technology that connects independent insurance agencies to insurers, agents can provide policyholders with the best advice, coverage and service. The rapid data exchange and the immediate access to accurate data through insurer connectivity saves agents hours of time by providing all the information agents need. Easier access to the market gives agents more time to focus on revenue generating activities and servicing clients.
Digital connectivity is a time-saver
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Connecting to insurer partners digitally empowers agents to find the best markets, effortlessly submit business, and quote and service their clients faster. Digital connectivity within the insurance ecosystem helps agents provide high-value experiences for their customers. From quote to bind, insurer connectivity allows agencies and insurers to interact seamlessly across the insurance lifecycle.
Next-step tech
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Which management system capabilities do you use?
Do you use a data analytics tool to gain business insights from your management system data? (YoY)
Do you use a data analytics tool to gain business insights from your management system data? (Percentage responding "Yes" by agency size)
Do you have a client self-service portal?
(Percentage responding "Yes" by agency size)
Does your client portal allow your customers to submit applications electronically?
About the Survey
1,382 independent agencies in the U.S. participated in the 6th Annual Applied Digital Agency survey, from which the results of this report were generated. Respondents voluntarily participated in an online survey conducted in Q1 2021. The findings are based on responses to set of questions about technology use. These responses gave the data needed to calculate a digital score for each agency taking the survey and identified baselines for technology adoption. The survey questions highlight five core competencies of a digital agency, including management system capabilities, mobility, insurer connectivity, data analytics and cloud software. Agencies scoring 80% or higher across all core competencies were considered digital agencies, because they adopted most of the key drivers of digital transformation.
Agency Revenue
Agency Size
Geographical Breakdown
Canada:
United States:
United Kingdom:
Republic of Ireland:
20%
68%
8%
4%
# of Employees
1-9:
10-24:
25-49:
50-74:
75-99:
100+:
48%
27%
12%
4%
1%
7%
< $1.25M:
$1.24 - $2.49M:
$2.5 - $4.9M:
$5 - $9.9M:
$10 - $25M:
> $25M:
47.2%
15.3%
13.5%
12.5%
9.7%
6.2%
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About the Survey
Cloud computing is an application-based software infrastructure that stores almost unlimited data remotely, allowing it to be accessed anywhere, anytime. A cloud platform purpose-built for insurance business provides a flexible operating environment that scales for business growth, stronger business continuity protection and increased mobile access to business information.
Mobile applications, or apps, are computer programs or software that can run on a mobile device like a phone or tablet. The increased accessibility it provides allows insurance agency staff to access and manage customer, prospect and overall business information when they are away from the office.
Cloud Computing:
Mobile App for Employees:
Digital Agency:
Foundational Management System:
Sales Automation Software:
Marketing Automation Software:
Industry Exchange:
Data Analytics:
Customer self-service portals and apps:
Digital Agency:
Can employees connect to the management system from a mobile device?
Can employees interact with the management system from a mobile device? (YoY)
How far ahead is your digital strategy focused?
Do you use a standalone marketing automation application? (Percentage responding "Yes" by agency size)
45%
Cloud computing is an application-based software infrastructure that stores almost unlimited data remotely, allowing it to be accessed anywhere, anytime. A cloud platform purpose-built for insurance business provides a flexible operating environment that scales for business growth, stronger business continuity protection and increased mobile access to business information.
Mobile applications, or apps, are computer programs or software that can run on a mobile device like a phone or tablet. The increased accessibility it provides allows insurance agency staff to access and manage customer, prospect and overall business information when they are away from the office.
Cloud Technology:
Mobile App for Employees:
Can employees connect to the management system from a mobile device?
Can employees interact with the management system from a mobile device? (YoY)
Digital Agency:
How far ahead is your digital strategy focused?
Foundational Management System:
Sales Automation Software:
Marketing Automation Software:
Do you use a standalone marketing automation application?
(Percentage responding "Yes" by agency size)
Insurance Exchange:
Data Analytics:
Customer self-service portals and apps:
Digital Agency:
45%