According to Liberty Mutual research, agencies that have fully embraced digital grow 70% faster than their more tech-cautious counterparts. So, what’s holding them back?

Dale Steinke has witnessed the insurance industry’s digital evolution from the front lines. As director of the Agent for the Future Advisors, he’s spent over 15 years helping independent agencies navigate technological change, from the early days of SEO to the current AI era. A former journalist turned AI advocate and evangelist, Steinke brings a unique perspective to his role, dubbing himself a “success concierge” for independent agents. His mission is straightforward: help insurance agencies cut through the noise of endless technology options to focus on tools that drive real growth. 

Recent research from Liberty Mutual shows that digitally advanced agencies are growing almost three-quarters faster than their less-digital counterparts. It’s a stat that underscores the urgency of his message. For instance, as AI transforms how consumers search for and interact with businesses, he’s pressing agencies that think they can postpone AI adoption to reconsider. From clients finding agents through generative AI platforms like ChatGPT, to the emergence of generative engine optimization, the landscape is shifting rapidly.

The Insurance Lead recently spoke with Steinke about the state of digital transformation in the independent agency channel, why AI policies are as crucial as social media policies once were, and what the next decade holds for agencies willing to embrace change.

The Insurance Lead: What is the biggest change you’ve seen over the course of your time in insurance?

Dale Steinke: The transformation of geography and reach has been remarkable. When I started 15 years ago, most agencies attracted customers from within a 10-to-20-mile radius around their physical location. Now, successful agencies are finding niches and serving customers across the country. Someone who’s an expert in a specialized commercial line can get customers wherever they do business. That’s fundamentally changed the business model.

The really successful agencies today are identifying those niches and going after them. It’s moved from being a purely local relationship business to one where expertise and specialization can transcend geographical boundaries.

What would be the 2-3 biggest changes you might predict over the next 10 years?

First is AI adoption and the rate at which businesses will implement it. There are incredible opportunities, but they’ll bump up against people’s natural resistance to change. Think about when computers came into offices – people held onto their typists for years because of status and habit. The agencies that adopt AI are going to accelerate forward, while those that don’t will find it much harder to succeed.

Second is technology integration becoming dramatically simpler. Right now, integrating different systems takes significant time, effort, and knowledge. I think in 10 years, it’ll be like changing your phone – you’ll get new technology delivered, scan one thing, and everything will integrate seamlessly while you’re drinking your coffee.

The third factor is customer comfort with AI. We need to see how comfortable customers become with agencies using AI to handle their information and interactions.

How would you describe the state of digital transformation among insurance agencies, and how much does it differ by agency size?

It’s more about mindset than size. Agencies that say “This is how we’ve always done things” are very hard to change, regardless of their size. But the ones that are scrappy and technology-forward, whether large or small, are the ones undergoing real digital transformation.

Our research shows that highly digital agencies are growing 70% faster than those lagging in technology adoption. And the difference is about more than just efficiency; it’s about creating a fundamentally better customer and employee experience.

Can you think of examples of ways agencies are leveraging data and analytics?

I approach this from the practical consultation side. When an agent tells me they need more leads, I dig deeper. What’s your close rate on existing leads? Where are those leads coming from? Are they good-quality leads, or do we need to look at different sources?

It’s about helping them make incremental improvements that free up time and resources for other growth activities. Sometimes the issue isn’t lead generation, it’s lead conversion and retention. Maybe they need to focus on customer experience improvements or sales enablement processes before worrying about getting more prospects in the door.

What are the most important digital capabilities agencies are asking for?

Right now, AI dominates every conversation. But there’s still some skepticism alongside the interest. At a recent conference, I asked a room of 80 agents how many were using AI at work. More than half the hands went up. Then I asked whether they had AI usage policies at their agencies. Only one person raised their hand.

Ten years ago, everyone was concerned about social media policies because employees could do something damaging. AI has much greater potential for serious repercussions if agencies aren’t thoughtful about it. I don’t want agencies to avoid AI, I want them to be strategic about it.

We need policies covering ethical guidelines, compliance protocols, protecting customer data, reducing bias, and managing reputational risk. Most larger businesses using AI already have these frameworks, but smaller agencies have catching up to do.

Looking at search and customer acquisition, how is AI changing the game?

We’re seeing the emergence of generative engine optimization (GEO), which has been picking up steam since late last year. I think we’re in the early days, like when people could game SEO with white text on white backgrounds. There are ways to potentially game GEO now, and I’m watching to see how that gets resolved.

Here’s something interesting. Agents are reaching out to me to say clients are finding them via ChatGPT. Large language models are trying to find the most likely answer to questions, so if someone asks, “Where do I find this type of insurance in a particular town in Connecticut?” generative AI models, including ChatGPT, are starting to serve up specific agencies.

While there are nuances to GEO, this comes back to fundamentals – good SEO is still good SEO. Answer questions in a conversational way, because that’s how people interact with both Google and AI tools.

What’s your message to agencies still hesitant about digital transformation?

You can’t put this off and deal with it later. It’s too late for that approach. On its current trajectory, AI is becoming ubiquitous on the internet, your phones, and the tools and services your agency uses. You need to be thinking about AI now and working on it. Even something as basic as having an AI usage policy is critical.

Technology should augment what independent agents do best: providing ease, choice, and advice that no one else can offer. The goal isn’t to replace the relationship aspect of insurance; it’s to handle mundane, repetitive tasks so agents can focus on what matters most: protecting what’s important to their customers.

The agencies that embrace this philosophy are the ones that will thrive in the next decade.