Independent Agents Thrive with Technology

Over the years, many have said independent agents are irrelevant. Here are a few that are starting to change their tune:

From Metromile Q2 2021 Shareholder letter

“We launched the initial phase of our new independent agent program in the second quarter of 2021, with more than 600 agents appointed to date. We are incredibly excited about how this channel diversification complements our existing model”

From Root Q2 2021 Shareholder letter

“We are scaling our internal sales agent program and piloting a program to provide our product through independent licensed agents. Offering the human touch widens the funnel to more good drivers that can benefit from Root’s technology and enables another connection point with potential customers”

From Lemonade Q2 2021 Shareholder letter

"While we have continued to see strong performance in our direct channels, we have been positively surprised by other means of acquisition. In Q2 21, these other distribution channels (primarily agent partners and Lemonade graduates) more than doubled their share of homeowner sales relative to Q2 20"

My thoughts Independent insurance agents and brokers have remained remarkably resilient through all the hype of the last few years that they are irrelevant and will be disintermediated. It seems consumers have voted with their wallets that many (most?) prefer the Agent to Consumer (A2C) connection. I am proud of the work we are doing at Catalyit to help insurance agents continue to thrive using technology.