Guest blog by Jason Keck, Broker Buddha
Guest blogs are written by contributors outside of HawkSoft. The participants' views are entirely their own and may not reflect the views of HawkSoft.
The immense power and transformative potential of Artificial Intelligence (AI) are undeniable. Much like the internet, it represents a monumental shift in technology that will reshape our world. That said, when it comes to the nuances of risk management, the complexities of coverage, and the delicacy of customer service, trusting AI to handle insurance policies without human oversight can be incredibly dangerous.
In the world of independent insurance, the buzz around Artificial Intelligence has reached a fever pitch. Everywhere you look, there’s a new promise that AI will revolutionize the industry, automate every process, and replace the manual grind of agency operations.
But for the independent agency owner—the person responsible for the agency's reputation and client trust—the reality is that integrating AI can feel unattainable, risky, or overwhelming. Let’s discuss that gap and how agencies can find a middle ground with AI-enabled solutions.
In this article:
The promise of "AI-first" technology is seductive: just tell your AI agent what you want it to do, and then sit back and let it go to work without any further action from you. But here’s the problem…we’ve all seen the limitations of AI when there isn’t a human at the wheel. Large Language Models (LLMs) and generative AI, while impressive, are prone to hallucinations and lack context about client history.
In an industry built on precision, "mostly right" isn't good enough. When AI makes a mistake on a commercial policy, the cost isn't just a glitch in a system—it’s an E&O risk for your agency. And we all know AI doesn’t carry an E&O policy. Your agency does.
Insurance is a relationship business. It requires empathy, judgment, and an understanding of the client’s unique story—things an algorithm cannot replicate. If you deploy an AI-first model, you effectively remove the expert agent from the process.
Instead, consider solutions that are AI-enabled (the "human-in-the-loop" model). In this framework, AI doesn't act as a replacement for the agent; it acts as an intelligent assistant. It handles the rote, repetitive tasks—extracting data from loss runs, organizing exposure workbooks, or pre-filling ACORD forms—while the agent retains final oversight. You remain the pilot; the AI is simply the co-pilot ensuring you fly straight.
As an example, consider a commercial renewal. Instead of an account manager tracking their book of business and deciding when to compile spreadsheets and applications to send to their customer, an AI agent notifies them that it’s time to send out the renewal solicitation and asks permission to set it up online based on existing account information. Once done, the manager has a chance to review it, correct any mistakes, and hit 'send.' The AI handles the heavy lifting, but the account manager maintains total control and accountability.
The human element of adoption also presents challenges for AI implementation. Independent agencies are already overwhelmed with technology. Asking your team to learn a completely new AI-first platform, change their entire way of working, and master a new set of complex prompts is no easy feat.
Your team doesn't need another tool. They need their existing tools to be smarter.
AI-enabled solutions work with the tools your team already uses—like your Agency Management System (AMS)—so you reduce friction instead of creating it. When AI is working in the background, making life easier rather than requiring users to learn a new interface, adoption happens naturally.
So, how should your agency evaluate AI tools today? Don’t get caught up in the marketing hype. Ask these three questions to make sure the solution will actually add value for your agency:
And when you’ve found the right solution:
The goal isn’t to build an AI-run agency; the goal is to build an agency that is faster, more efficient, and more responsive to clients. By choosing AI-enabled tools that augment your team rather than replacing them, you can leverage the power of technology while keeping the human element—the true differentiator of the independent agency—at the center of your success.
The technology exists today to make this hybrid model a reality. Look for solutions that prioritize your existing processes and empower your staff. After all, the best insurance technology isn't the one that does the work for you; it's the one that helps you do your best work.
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