Insurance agents embrace AI: Nationwide

Independent insurance agents appear ready to deploy artificial intelligence, according to a Nationwide survey. 

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

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

Chetan Kandhari, Nationwide’s chief innovation and digital officer, told Digital Insurance that there is more acceptance that AI will benefit agents in their work connecting with customers. 

“Two out of five principal agents have already invested in AI capabilities, that’s a signal,” Kandhari said. “AI is a very easy to utilize technology as opposed to a lot of others which has [led to] democratized AI and I think that helps the adoption curve.”

Agents seem to be more trusting of AI technology than they were a year ago, according to the report. Three-fourths of principal respondents said they trust AI chatbots like ChatGPT to provide operational advice despite nearly the same percentage noting they are also concerned that the use of the technology will increase cybersecurity risk for businesses. Principal respondents also suggested that AI will replace non-customer facing jobs over the next five years and some are considering replacing current employees with AI technology. 

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

Lisa Gobber, Nationwide’s P&C director of sales, added it is interesting that there is concern around AI but agents are still inquiring about investments. “The recognition by agents of how critical this can be has been pretty significant in a short period of time,” said Gobber.

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