Bothell, WA (PRWEB) June 13, 2013
A recent survey conducted by Vertafore (http://www.vertafore.com), the leading provider of software that transforms the business of insurance has found that the majority of insurance agencies (77%) directly attribute their fiscal growth during 2012-2013 to the use of technology. The survey taken at this year’s NetVU (Network of Vertafore Users) conference was designed to identify the sentiment among insurance agents using technology. Key findings include:
- Agencies that were once considered small have increased their revenue size in recent years. As a result, they are now categorized as medium-sized agencies.
- Smaller agencies say mobile technology has been beneficial, and data shows they have embraced it more than larger agencies.
“The results of our survey reflect the positive impact that technology is having on the way agents and brokers prospect, conduct and retain business,” said Bruce Winterburn, vice president of Industry Relations for Vertafore. “As new regulations emerge and business processes change, agents have to adapt and evolve to meet the new demands of their clients. Vertafore will continue to lead the way in helping agents to navigate this complex environment and to aid in their continued growth, through our comprehensive suite of solutions.”
Growing Out of a Segment
Medium sized firms (26-75 employees) grew the most in 2012; 28% experienced nearly 10-20% growth, while 64% grew approximately 2-10%.
Other segments also witnessed growth:
- 23% of large agencies (76+ employees) have grown 10-20% and 56% have grown 2-10%
- 17% of small agencies (1-25 employees) have grown 10-20% and 72% have grown 2-10%
Of those medium-sized firms surveyed, nearly a quarter (22%) outgrew the small agency segment since 2010 moving into the medium-sized agency segment by 2012. These figures complement the Big “I” 2012 Agency Universe Study which revealed that since 2010, the percentage of small agencies has decreased from 32% to 28% while the percentage of medium-small agencies has increased from 42% to 46%.
“As a result of their technology investments, many smaller agencies have had an opportunity to add and manage businesses that they did not previously have the capacity to support,” added Winterburn. “As agencies of all sizes take advantage of tools available to them, new revenue and growth opportunities have emerged.”
Future of Mobile Technology
Mobile features and functionality continue to play an important role for insurance agencies across the country. In fact, the largest number of agencies (47%), feel that mobile has helped them grow and evolve alongside their clients; 27% say it has not and 25% are unsure. Interestingly, however an equal amount of large agencies feel that mobile has been a help (40%) and a hindrance (40%).
“The dichotomy in the large agency sentiment may likely be attributed to the lack of mobile access and training currently available for agents,” continued Winterburn. “We see the adoption of mobile usage, by agencies of all sizes, as an opportunity to participate in the technology shift occurring right now within the insurance industry. As increasing numbers of agents and brokers take advantage of the educational opportunities and mobile tools Vertafore provides, we fully expect this sentiment to change.”
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Learn more about NetVu and attending the 2014 NetVu Conference at http://www.netvu.org
Notes to editors:
The survey of 157 insurance professionals was conducted in-person by Vertafore at the 2013 NetVu Conference in Grapevine, Texas specifically on March 7-8, 2013. The survey includes responses from both owners and employees of U.S. based insurance agencies. Prosek Partners tabulated the data and prepared this backgrounder.
The margin-of-error for this survey is +/- 7 percentage points for numbers based on the entire sample.
Vertafore delivers software and services that transform the business of insurance. Unique to the industry, more than 20,000 customers rely on Vertafore to provide integrated technology that connects the entire industry with the most complete source of solutions—agency management, rating and connectivity, content management and workflow, information solutions and producer lifecycle management—so their businesses run better and are more profitable. For more information about Vertafore, please visit http://www.vertafore.com.
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