In a recent feature for CIAB’s Leader’s Edge, Dan Epstein, CEO of ReSource Pro, provides insights into insurance industry trends for agencies and brokers into 2025.
Agencies are shifting their focus from mergers and acquisitions to internal growth strategies, and rethinking how to manage talent, improve operations, and use technology. This shift aims to increase profitability and efficiency.
Key themes shaping insurance retail strategy
Two key themes are currently shaping the industry.
First, agencies are moving away from inorganic growth through acquisitions to optimizing and integrating their platforms. With fewer agencies available for acquisition and higher costs involved, agencies are now concentrating on standardizing processes, unifying systems, and ensuring data integrity.
Second, the looming talent crunch is becoming a critical issue. As retirements accelerate, the need to retain experienced professionals with deep insurance knowledge becomes more pressing.
Agencies and brokers face new risks in this evolving landscape, such as technology risks, operational inefficiencies, and the complexities of providing adequate coverage. Specialized knowledge will be critical in mitigating these risks, along with automation and APIs to improve process integrity.
Big picture challenges for insurance agencies and brokers
Industry fragmentation and the aging workforce both represent major challenges. Thousands of agencies, each with their own systems, make digitization and automation difficult. Meanwhile, with 50% of insurance professionals set to retire in the next 15 years, the potential loss of industry knowledge is staggering. Best-in-class agencies are addressing these issues by improving workforce productivity, leveraging technology, and tapping into global talent pools.
Practical tips for process improvement
Tasks and processes are not the same. Insurance organizations must focus on optimization rather than just task efficiency – this helps to ensure better resource utilization and more sustainable growth.
To learn more about Dan Epstein’s perspectives on industry challenges and opportunities, read the full Q&A here.
