Study: Highly Digital Agencies Grow 60% Faster Than Competitors
A recent survey of nearly 600 U.S.-based independent agents from Liberty Mutual and Safeco Insurance sought to understand how independent insurance agencies are evolving to meet new expectations. The results, published in the “Rise of the Digital Insurance Agency” report, found that digitally-savvy agencies grow an average of 60 percent more than their less digital counterparts. Furthermore, 44% of high digital adopters experience annual revenue growth of more than 10 percent compared to just 29 percent of low digital adopters that experienced the same.
According to the companies, the study’s findings come at a crucial time for the independent agent channel, which has had to deal with operational disruptions tied to the pandemic while meeting customer’s growing expectations.
“Digital is a trend that has been building for decades now, and COVID-19 has simply accelerated the need for transformation,” Tyler Asher, president of independent agent distribution at Liberty Mutual and Safeco Insurance, said in a press release. “While we know anecdotally that deeply digital independent agencies generate more leads, operate more efficiently and have happier customers, this research offers a clear picture of the business value digital can provide, which is that high digital adoption leads to faster growth.”