You might have read our article on the direct-to-consumer models in insurance that skip over intermediaries. It might seem like this one runs counter to that idea. But the truth is that while DTC is growing, the role of agents and brokers is far from obsolete. The insurance industry has always relied on these professionals to connect insurers with policyholders, and today, digital tools play a big role in how they work, making it even more efficient.

In this article, we’ll take a closer look at how insurance agents and brokers are adjusting to the digital age, showing that you don’t have to choose between technology and strong client relationships—you can have both.

Traditional Role of Agents and Brokers in Insurance

Since the insurance market works differently depending on the region, for the purpose of this section, we’ll take a closer look at how insurers and brokers operate in the UK.

Insurance agents are professionals who sell insurance policies on behalf of insurance companies. But they don’t all work the same way. There are two main types of agents: captive and independent.

Captive agents work exclusively for one insurer, meaning they know that company’s products inside and out. They typically receive a fixed salary plus commission and focus solely on selling their employer’s offerings. Independent agents, on the other hand, represent multiple insurers, giving customers more options. They earn commissions on sales but still act as representatives of the insurance companies they work with.

Then we have an insurance broker. This is an independent intermediary who works on behalf of clients rather than insurance companies. Their job is to find the best policies by searching the market, comparing options, and offering unbiased advice. They help break down the fine print so that their client knows exactly what they’re getting. Beyond just finding policies, brokers also assist with managing claims, making the insurance process smoother and less stressful.

How the Role of Agents and Brokers is Changing

In today’s fast-moving digital world, where customer expectations are constantly evolving, it was only a matter of time before the role of insurance agents and brokers had to adapt. Below are several key trends shaping their functions.

Embracing Digital Tools and Technology

Insurance intermediaries are increasingly turning to technology to improve their offerings:

• 85% of carriers and brokers are now looking to fill digital roles, especially for data scientists
• 80% of brokers have incorporated AI into their workflows, though half only apply it sometimes.
• Digital tools are enabling agents to offer more personalised services and tailored recommendations, while also reducing manual tasks.

Advisory Focus

These days, insurance intermediaries are stepping away from the old-school sales pitch. More and more, brokers are seen as trusted advisors, focusing on strategic risk management advice rather than just selling policies. Clients expect more than a transaction—they want experts who understand their needs and offer comprehensive guidance and support. Brokers are now stepping up to deliver that.

While technology helps, there’s still a vital role for human expertise and tailored advice that can’t be replaced. It’s this personal touch that builds strong, lasting relationships with clients, making them feel valued and understood.

Focusing on Specialisation and Niche Markets

In today’s competitive insurance market, many agents and brokers are narrowing their focus to specific industries or types of insurance. By tailoring their services to unique customer segments, they can offer more personalised, value-added solutions that go beyond the basics.

This focus on specialisation brings several benefits:

• stronger client relationships, 
• improved efficiency by focusing on particular policies,
• better access to exclusive programs,
• reduced competition from general insurance markets, allowing intermediaries to stand out and establish themselves as experts in their niche.

Adopting a Hybrid Approach

Adopting a hybrid approach to insurance is becoming a key strategy for insurance agents and brokers. By blending the best of digital tools with personal service, they’re creating a unique value proposition.

Technology—such as real-time data analytics, AI-powered chatbots, and CRM (customer relationship management) systems—helps with efficiency since, thanks to it, insurance professionals can streamline daily operations, generate leads, and enhance advisory capabilities with personalised insights. Meanwhile, face-to-face meetings and video consultations provide a human touch for more complex matters, making the process smoother and more accessible for everyone.

This balance gives clients the best of both worlds: 24/7 access to their policy info and expert advice when they need it. This hybrid approach to insurance selling lets agents and brokers offer smarter, more efficient services, but the real value lies in their ability to maintain strong relationships with clients.

Why Insurance Agents and Brokers Are Still Needed

Do people actually need insurance agents and brokers in today’s digital age? While it might seem like we can handle everything online on our own, when it comes to insurance, having an intermediary by one’s side is still a huge advantage.

Insurance agents and brokers bring a personal touch and expert knowledge to the table that technology simply can’t match. From tailoring solutions to suit unique needs, to guiding clients through claims or helping save time and often securing better deals, their support continues to make all the difference. Here’s the breakdown of why these middlemen are still essential:

• Client-centred approach: Insurance brokers always put the client’s needs first, offering tailored solutions instead of pushing generic policies.
• Wide range of options: With access to multiple insurers, brokers can compare various quotes and help clients find the best match.
• Expert knowledge: Insurance agents and brokers bring a deep understanding of the insurance industry, guiding clients through the complex landscape.
• Claims assistance: During the claims process, insurance intermediaries provide extra support (including analysis and guidance) when it’s needed most.
• Time and cost efficiency: Brokers save clients the hassle of researching multiple providers, often securing better deals through their connections.
• Direct relationship: Agents often have direct ties with insurance companies for more tailored solutions.
• Personalised support: Insurance agents provide continuous support throughout the policy lifecycle.

Challenges Agents and Brokers Face in the Digital Age

The digital transformation of the insurance industry opens new doors, but it also introduces new hurdles for agents and brokers.

One major challenge is the slow adoption of new technologies. Many agencies struggle to find the time, motivation, or resources to implement new digital tools. If this is something you’re struggling with, this article on transforming from insurance companies to InsurTech will surely give you valuable insights.

Then, there’s the growing competition—price comparison websites and direct-to-consumer platforms make it harder for intermediaries to stand out.

Not only that—intermediaries need to be keeping up with innovation. The fast-changing tech landscape requires constant learning and adaptation.

Not to mention staying up to date with emerging tools while maintaining the personal relationships that build trust is another balancing act.

Digital Tool for Agents and Brokers

It seems impossible to do without technology these days. It’s become an integral part of our daily routine, making our lives more convenient and easier.

But there’s something that makes insurance brokers and agents have the upper hand over tech—it’s keeping that personal touch customers value so much. So, you might be thinking that going digital means losing that human element. It doesn’t—at least not when you do it the smart way. Which is? Making your work more efficient and engaging.

That’s exactly what InsurancePass helps agents and brokers do.

Instead of creating yet another app to compete for space on your clients’ devices, InsurancePass integrates directly with mobile wallets, providing a seamless, app-free experience.

With InsurancePass, you can:

• Stay connected with clients—send push notifications for policy renewals, claims updates, and important alerts, keeping clients informed and engaged.
• Simplify access to policies—give your clients an easy way to check their insurance details, coverage, and emergency contacts—all in one place, accessible anytime.
• Reinforce your brand—customise the platform with your branding, ensuring a seamless experience that feels like an extension of your services.
• Speed up claims reporting—enable quick First Notice of Loss (FNOL) submissions, making it easier for policyholders to start the claims process and for you to respond faster.
• Improve customer retention—deliver a frictionless digital experience that makes policy management effortless, increasing client satisfaction and long-term loyalty.
• Support sustainability—reduce paper waste and encourage eco-friendly practices by going digital while improving operational efficiency.

Going digital isn’t just about keeping up—it’s about standing out. Give your clients the convenience they expect—without losing the relationships that set you apart.

Don’t let technology leave your relationships behind—explore how InsurancePass can transform your customer experience.

Learn more and get started!

Takeaways

Insurance agents and brokers can still play a vital role in the insurance ecosystem, providing personalised service and expert guidance in an increasingly digital world.

The good news is technology and strong personal connections don’t have to be mutually exclusive. The key is to leverage both to offer a seamless, client-focused experience. By embracing digital tools like InsurancePass, you can keep that personal touch while working smarter and engaging more effectively with your clients.

Ready to make that shift and start working smarter? We’re here to help you do just that! With our expertise in both technology and insurance, we’re your go-to partner in the digital transformation of your business. Give us a chance to prove it. Reach out!