More Impacts of Moore's Law on Small Agencies

As I continue to think about the radical, transformative impact of the geometric progression of computing power that Moore's Law posits I am increasingly excited about the future!

Here are some more things I think are likely to happen in the next 5 to 10 years as a result of relentless increases in computing power and the profound change it will usher in:

- It is very easy to know a lot of things today.  But it will be a simple matter to know everything soon.  Access to information is increasing dramatically.  So, soon you will be able to determine, at a household level, which insurance company offers the best coverage and price.  You won't be targeting zip codes you'll be targeting people.  And you'll know all about them.  Privacy is already dead.  The ability to mine the data is increasing at exponential speed.  So, the question is how do you compete with others with the same information.

- Relationships will be more valuable than ever before.  When everyone can know everything the key will be translating that knowledge into relationship.  Technology will make this much simpler.  Customer Relationship Management systems of today are analogous to walking compared to flying jets of tomorrow.  How you apply insight will be the critical factor.  Since the cost of servicing clients will also plummet with the rise of computerized robotic and very robust data systems, agent's resources can be devoted to developing the relationship.  Cost for this will also plummet which is good because so will commissions.

- Insurance companies will allow virtually anyone to sell for them.  The old days of minimums will disappear as carrier's costs to service agents drops.  Carriers will also be able to price much more accurately at the individual risk level as they develop better means of mining the data that already exists, and the data that will become available.  The challenge for agents will be to match risks with carriers in sufficient quantity to maximize income as well as to "know" the capabilities of hundreds of carriers instead of the handful agents deal with today.

There is a lot more than what I have listed in the last three blog posts.  Some of the changes, like the ones I have described, are obvious.  Many are not.  The key to survival, and prosperity, of agents in the future is to stay on top of all of this and adopt changes early.  When you're busy running a business every day this is difficult and so I believe that the agents that band together to pool knowledge resources will have an edge on everyone else.  That is what OAA is all about...

income calculator cta

1 minute read

Recent Posts

Overcoming Insurance Industry Challenges

Those of us who own insurance agencies are no strangers to industry challenges. The COVID-19 pandemic brought several of the latest issues racing to the forefront as individuals ...

The Future of Digital Trends in the Insurance Industry

The times, as they say, they are a’changing! And they’re changing even faster and more drastically than most people in the insurance sector have seen. While digital transformation ...

How to Scale an Insurance Agency: Best Practices Guide

Growth is an important concept in any industry. Many independent insurance agency owners want to scale because they want to grow their book of business.