Despite facing inflation, market volatility, and technological changes, independent insurance agents remain optimistic about their business prospects. According to Nationwide’s recent survey, 62% of agents rated current U.S. business conditions positively, up from 41% in 2023, with 79% having a positive outlook for their businesses in 2024.
Revenue Growth Expectations
The survey revealed that 65% of agents anticipate revenue growth in the next six months, while only 10% expect a decrease. However, agents expressed concerns about inflation, AI technology, and market volatility, highlighting the economic challenges they face.
Adapting to Economic Conditions
Many agents are looking for ways to reduce expenses, with 53% taking cost-cutting measures. Some have sought personal or business loans, and many have delayed updating their technologies and investing in business processes due to economic pressures.
Increasing AI Adoption
To navigate these challenges, nearly 40% of principal agents have invested in generative AI and automation tools recently. The adoption of AI is seen as a significant opportunity, with 62% of agents already integrating AI technology to enhance customer service, underwriting, and sales processes.