ACT Tech Trends Report – Key Insights for 2025–2026.
The independent insurance agency channel is undergoing one of its most significant technology shifts in decades. As margins tighten, customer expectations rise, and operations grow more complex, agencies and carriers are moving from experimentation with technology to decisive, strategic implementation. The ACT Technology Trends Report highlights how AI, data, connectivity, and human expertise are converging to reshape the industry.
AI Moves From Novelty to Necessity.
2025 marked a tipping point: AI became more accessible, more affordable, and more widely adopted across agencies of all sizes. While interest is high, operational readiness is lagging. Most agencies expect to increase AI use, yet only a small fraction are doing so strategically. Survey Insights/Survey Says:
AI adoption is in the Exploration phase:
are just experimenting
aren’t using AI at all
Only have AI embedded in daily workflows
Top 3 AI tools in use:
ChatGPT or other public LLMs
Policy comparison tools
AI-enabled marketing tools
Key barriers include lack of documented processes, vendor confusion, resource constraints, and security concerns.
Generative AI is delivering strong efficiency gains in tasks such as content creation, customer service, and document analysis—but it requires clean data and human oversight to avoid inaccurate or risky outputs.
Agentic AI, one of the fastest-emerging trends, goes beyond content generation to execute multi-step tasks (e.g., policy comparisons, claims handling workflows). Its power comes with the need for strong guardrails, clear business rules, and governance.
Data, Connectivity & Interoperability Become Imperatives
Insurance remains a highly unstructured data environment, but AI—especially small language models—now allows agencies to unlock previously inaccessible information. APIs, automation, and data normalization technologies are reducing rekeying, portal fatigue, and data discrepancies.
Despite progress, lack of industry-wide standards continues to create friction. Agencies are shifting toward connected tech stacks where the AMS serves as the launch point for automated processes across the customer lifecycle.
Security, Governance & Risk Accelerate in Importance
The rise of AI coincides with escalating cyber threats. With attackers increasingly able to compromise systems within an hour, agencies must strengthen security protocols, vet vendor practices, and monitor AI usage for compliance and privacy risks. Survey Insights/Survey Says:
Top AI concerns Aren’t About price — They’re About Risk & reliability:
worry about data privacy/compliance
worry about inaccurate outputs
fear losing the human touch
Shadow deployment—employees using unapproved tools—poses an additional challenge. Many agencies still lack formal policies governing AI use, exposing them to liability. Survey Insights/Survey Says:
Governance & Training Are Lagging Behind Adoption Even as interest in AI rises:
of agencies do not have an AI use policy
rely on informal, peer-to-peer training
say they don’t have a consistent training process
Digital Visibility Becomes a Competitive Requirement
AI‑driven search is redefining how clients discover, validate, and select insurance partners. Agencies with outdated or inconsistent digital presence risk becoming invisible—not only to customers, but also to carriers and prospective employees.
Success now hinges on:
- Consistent business listings
- Active review generation and response
- Localized, frequently updated content
- Demonstrated expertise via thought leadership
This trend impacts personal, commercial, and specialty lines alike.
Technology Elevates—Not Replaces—the Human Role.
Across interviews and survey data, the message is clear: AI amplifies human expertise rather than replacing it. Customer expectations for speed and personalization are rising, but 85–90% still want the guidance of an agent for purchases and policy management.
The result is a rebalanced operating model:
- AI and automation handle data entry, comparisons, routine service, and administrative workflows.
- Agents and producers focus on advisory relationships, complex risks, and high-value interactions.
- The AMS becomes the “automation chassis” supporting end‑to‑end lifecycle management.
Survey Insights/Survey Says:
Efficiency Is the #1 Promise of AI. Agents are looking at AI primarily as a time-saving tool:
expect operational efficiency
expect staff productivity gains
A cultural shift is underway, with more agencies creating roles dedicated to innovation, operations, and technology strategy.
What’s Ahead: 2026 & Beyond
The industry is moving from momentum to meaningful transformation. Competitive differentiation won’t come from tools alone, but from how well agencies integrate technology, align workflows, and strengthen governance.
Signals shaping the next phase include:
- Greater AI transparency in pricing and underwriting
- Embedded insurance compressing transaction cycles
- Growth in regulatory technology
- Increased collaboration among carriers, vendors, and agents
- Product innovation driven by granular data and emerging risks
Across the ecosystem, a new philosophy is taking root: Progress is no longer about waiting to see what happens—it’s about building together intentionally. Check out the full ACT Tech Trends Report!
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