Insurance Agents Adopt AI: Nationwide

Independent insurance agents appear poised to implement artificial intelligence, according to a Nationwide survey.

More agencies and agents are moving to use machine learning and Next generation AI technologies to meet consumer expectations. Sixty-two percent of responding independent agents said they are already investing in AI and 28% have adopted an AI platform for their business in the past six months.

The Nationwide Economic Impact Survey: Independent Insurance Agents Findings report was conducted online in May and includes responses from approximately 400 agents, with a mix of executives, producers and customer service representatives.

Chetan Kandhari, Nationwide’s director of innovation and digital, said Digital insurance that there is greater acceptance that AI will benefit agents in their work of connecting with customers.

“Two out of five leading agents have already invested in AI capabilities, that’s a signal,” Kandhari said. “AI is a very user-friendly technology, unlike many others that have (led to) the democratization of artificial intelligence, and I think that’s helping the adoption curve.”

According to the report, agents appear to have more confidence in AI technology than they did a year ago. Three-quarters of top respondents said they trust AI chatbots like ChatGPT to provide operational advice, despite nearly the same percentage noting that they are also concerned that using the technology will increasing cyber security business risk. Top respondents also suggested that AI will replace non-customer-facing jobs within the next five years, and some are considering replacing current employees with AI technology.

Investments in technology or digital transformation initiatives, improving operational efficiency, strategic partnerships or collaborations with other businesses were seen as top opportunities for agencies.

Lisa Gobber, P&C sales director at Nationwide, added that it was interesting that there were concerns about AI, but agents were still asking about investment. “The recognition by agents of how critical this can be has been quite significant in a short period of time,” Gobber said.

Gobber added that there is a real use for AI in knowledge management, especially for agencies that are national in scope and represent a lot of insurance carriers. There is room for AI to supplement and advise in navigating different appetites, guidelines and markets.