AI for Insurance Agencies: It Is Everywhere, But Can It Be Trusted?
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By Parminder Saini, Chief Technology Officer
AI promises speed and simplicity. Agencies want both. The real question is trust. Can you rely on AI to help your team move faster without risking accuracy or your reputation?
This article shares what agents say they need, how they feel about AI right now, what regulators expect, and practical guardrails that make AI useful and safe. It is general information, not legal advice.
Agencies that combine curiosity with caution [...] will be best positioned to take advantage of AI without losing credibility.
What Agents are Doing Today
Key Characteristics of Modern Commercial Projects
The Agent for the Future 2024 study found that only 6 percent of independent agency principals say their agency has officially implemented an AI solution. About one in three expect to be using AI within the next five years. Trust levels are low, with just 17 percent saying they trust AI and 27 percent viewing it as a threat.
Takeaway: Principals tend to think about AI as a major, agency-wide investment. Their responses reflect caution and a slow approach.
Experimentation is Much Higher
A Nationwide survey reported by Insurance Journal found that 62 percent of independent agents said they had invested in AI, and 38 percent said they adopted a platform in the past six months.
Takeaway: Producers and staff often count smaller tools like email assistants, CRM features, or marketing software as “AI.” Their answers highlight curiosity and experimentation rather than formal rollout.
The Real Picture
Both perspectives are true. Agencies are testing AI in small, practical ways at the staff level, while enterprise-wide adoption is still rare at the leadership level. The common thread is curiosity mixed with caution.
What Agents Say They Need From AI
- Less time on admin, more time on growth. Agents want to move focus from routine service to quoting, prospecting, and client conversations.
- Digital experiences that reduce back and forth. In one industry study, 83 percent of agents said digital capabilities matter when choosing carriers and MGAs.
- Clear, defensible answers. When clients ask about differences in coverage, agents need concise explanations they can trust.
- Data safety. Privacy and PII protection remain top concerns.
How Agents Feel About AI Right Now
- Curious, but cautious. Trust is low, and accuracy is the top concern.
- Uncertainty is common. The Big I’s Agents Council for Technology warns that unclear standards create hesitation, and recommends intentional adoption with defined goals.
- Clients are cautious too. The Pew Research Center found that most consumers worry about businesses using AI without oversight.
What Regulators Are Saying
Departments of Insurance are watching AI closely.
- The NAIC’s Model Bulletin on AI urges insurers to maintain governance frameworks, test for unfair bias, document methodologies, and oversee vendors.
- New York’s Circular Letter No. 7 requires insurers to ensure AI models are explainable, test for proxy discrimination, and disclose meaningful information to consumers.
- Colorado has enacted legislation requiring life insurers using AI to build governance programs and conduct fairness testing.
While these rules target carriers, not agencies directly, the message is clear: accuracy, fairness, and transparency matter. Agencies that adopt AI should align with these expectations to stay credible and ahead of the curve.
Why PII Matters
PII stands for Personally Identifiable Information. It includes data that can identify an individual, such as Social Security numbers, driver’s license numbers, addresses, phone numbers, or even policyholder names when paired with other data.
Why it matters for agencies:
- Uploading PII into a public AI tool can expose sensitive client data.
- Many states, through NAIC’s Insurance Data Security Model Law, require agencies to safeguard PII and report breaches.
- Protecting client data is both a regulatory requirement and a trust issue.
A Practical Path Forward
Agencies do not need to adopt every new tool. They can start small:
- Choose one or two safe use cases, like document summarization or prep for renewal calls.
- Keep a human reviewer in the loop.
- Document prompts and sources for accountability.
- Train staff with simple do and do not examples.
[...] only 6 percent of independent agency principals say their agency has officially implemented an AI solution. About one in three expect to be using AI within the next five years.
The Bottom Line
AI is everywhere, but not all AI can be trusted. Agents want speed and simplicity, but they cannot afford to compromise on accuracy, data protection, or client trust. Regulators are raising expectations, and clients are watching closely.
Agencies that combine curiosity with caution — experimenting in small ways, documenting their process, and aligning with DOI priorities — will be best positioned to take advantage of AI without losing credibility.
One Option for Agencies Ready to Take the Next Step
BTIS partners with Outmarket, an AI platform built for insurance. Outmarket offers a broad range of AI tools, but ProSuite subscribers get access to its quote comparison tool as part of their subscription for the entire agency. It highlights differences in coverage, endorsements, and terms, helping agents respond to clients with clarity and confidence.
This feature is one of many included in ProSuite, available for just $99 per year for the whole agency. It is an incredible value for agencies that want practical tools without a heavy lift.
Parminder Saini is Chief Technology Officer of Builders & Tradesmen's Insurance Services, Inc., an Amynta Group Company.
Builders & Tradesmen’s Insurance Services Inc.
BTIS is committed to providing robust, individualized products and the highest level of service. Our easy-to-use commercial insurance platform, educational tools, and helpful underwriters make it simple for producers to diversify their books of business by expanding their product portfolios.
Part of the Amynta Group, BTIS is a nationwide insurance intermediary with a small-business attitude. We believe in building solid relationships through communication and a genuine concern for the success of our retail broker clients and the policyholders they serve.
For additional information, visit www.btisinc.com or call (877) 649-6682
