Why InsurTech Is Finally Ready to Deliver Big Wins

InsurTech has struggled to deliver industry-wide value. But things are about to change. Three big trends are reshaping the game, and smart agency leaders are taking note.

Here’s what you need to know:

1. The GenAI Wave Is Here

Generative AI (GenAI) and agentic workflows are creating massive opportunities.

• Pay-per-use pricing: Agencies can now test and validate new technologies without the risk of long-term contracts or high upfront costs. Pay-as-you-go models let you see real results before fully committing, making it easier than ever to find the right fit for your agency.

• Filling the talent gap: Half of insurance professionals will retire by 2040. That’s 400,000 jobs gone. InsurTech can help fill the void with smarter tools.

  

2. APIs Are Breaking Down Walls

Main Agency Management System (AMS) players are opening their platforms. Why does that matter?

• More open APIs mean tech vendors can connect systems like never before. Data flows smoothly. Workflows are less clunky. Agencies finally get tools that talk to each other.

• Both Applied Systems and Vertafore are going all-in on API integration. Competitive forces and customer demands have pushed these platforms to open up their walled gardens of data.

3. Funding Is Fueling Growth

InsurTech funding hit $1.38 billion in Q3 2024- the highest level since Q1 2023, according to a report from Gallagher Re.

• The costs to build tech are lower than ever. More funding means faster innovation. Startups can deliver better products, quicker.

• This surge shows that investors see big potential in InsurTech’s future. It might be the perfect time for your agency to explore these opportunities, too.

  

"Why Change if We're Growing?"

It’s great that your agency is growing. But here’s the thing: growth in the past doesn’t guarantee growth in the future.

Here’s why staying the same might hurt you down the road:

• Rising customer expectations: Clients demand faster, more personalized service. If you can’t deliver, they’ll move on.

• Your competitors are innovating: Agencies adopting new tech are cutting costs and offering more value. They’re gaining market share.

• The talent shortage is real: With 50% of the insurance workforce retiring soon, finding and keeping great people will get harder.

Even if your agency is growing now, relying on outdated processes could hold you back when the industry shifts. InsurTech isn’t just about fixing what’s broken—it’s about preparing for what’s next. Are you building an agency that thrives today—or one that’s ready to lead tomorrow?