Insurance automation vs. virtual assistant outsourcing

For insurance agencies offering personal lines, 2025 will be a challenging year. Not only are premiums trending upwards, but the hard market that we’ve experienced over the last few years is forcing agents to rethink their approach to renewals. Simply put, the processes that have helped agents weather past market changes no longer apply, and the industry needs to find new ways to solve the critical issues driving current market conditions.

Unsurprisingly, agency margins remain excruciatingly slim going into 2025, and there’s increased pressure to meet the operational demands that come from rising workloads and evolving client expectations. Typically, this leaves agencies caught choosing between three imperfect options: 

1. Focusing their efforts on providing personalized services to only a small portion of their book of business, primarily high-yield VIP clients
2. Outsourcing to third-party virtual assistants (VAs) so they can temporarily increase headcount to address demand
3. Investing in automated technologies to streamline workflows and improve agent efficiency

But what if there was a new, more intelligent way of approaching renewals? One where agents could not only address increased demand and benefit from the speed, precision and consistency of both VAs and automated technologies? What if this approach enabled your agents to tap into an intelligent analysis of policy data for every one of their clients, making it easy for them to provide a high-touch experience to every policy holder in your book of business? As agencies look for sustainable ways to scale and serve their clients in 2025, intelligent and integrated solutions will offer a smarter, more holistic path forward.

More on that later. First, let’s take a look at how agencies have traditionally tried to improve their renewal process.

One missed call: The dangers of segmentation 

Providing a personalized and proactive service to every client on a agent's roster is like trying to climb Mount Everest without an oxygen tank – it’s just not possible to do unless conditions are ideal (or you’re a superhuman).

Because it’s not possible, agents across the country instead spend their limited time and attention on prioritizing high-value VIP clientele, ensuring these folks receive a premium service that almost guarantees their renewal. 

For the most part, this tactic is great at keeping the lights on, but “segmentation scenarios” like this drastically impede your agency's growth potential across the rest of your book of business. Why? Because it impacts your agents' ability to provide customizable upsell and cross-sell opportunities across the entire gamut of personal lines insurance. What’s more, it means that a  large swath of your book is left unattended to. This is frustrating for both the neglected clients (they, rightly-so, expect personalized service as part of the client/agent experience) as well as for the agent, who ultimately knows they can provide these clients better advice and guidance, if only they had more hours in the day to do so. 

Hidden figures: Outsourcing to human experts

VAs have long helped insurance agencies manage fluctuating workloads without overextending internal teams. And by relying on third-parties like this, agencies can quickly outsource the more rote tasks involved in renewal reviews.

However, doing this comes with a variety of pain points. For example, VAs typically only perform a small percentage of the renewal review work that an experienced agent takes on, and outsourcing the simple stuff doesn't effectively solve the underlying issue that agent's face. 

Additionally, the quality of work can vary widely, and many outsourcing companies will lean on external staff members from other regions across the globe who require hands-on management. Oftentimes, these VAs lack any specialized insurance training, which can impede the client experience and result in less value for the agent, who is ultimately responsible for making policy renewal decisions. What’s more, human error – caused by the likes of fatigue or distraction – can impact the accuracy of a policy renewal, which can open agencies up to E&O claims.

To put this another way: Is cheap, untrained VA support really the best the insurance industry can do in a world of innovative AI technologies?

Most importantly, though, is the expense that comes with relying on external human talent. Many VA companies struggle to offer transparent pricing, and when they do, it’s typically an inflated and pay-to-play rate that only provides insurance agencies with a “bandaid solution” to the ongoing challenge of addressing demand. 

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I, robot: Making the case for automation

The underlying goal of most automation technologies is always the same – to speed up workflows so agents can become more efficient. Doing this allows agents to provide more personalized client experiences to a larger number of folks looking to renew.

Insurance agency automation doesn’t just free up agents to focus on meaningful, human-driven conversations with clients, though. It also enhances accuracy, minimizes errors and ensures a more proactive approach to policy renewals. And in a competitive industry where responsiveness and reliability are king, these benefits can make a measurable difference in client retention and agency growth.

Yet, automated technologies are not without their limits. Sure, they excel at following predefined rules and processing structured tasks at lightning speed, but they oftentimes struggle when faced with complexity, nuance or the need for judgment. And when it comes to , nuance and judgement are front and center in the decision-making process. 

Factors like experience and a deep understanding of client needs are qualities that automation simply can’t replicate, and for agencies relying solely on technology as a catch-all solution, this can leave critical opportunities untapped.

Sophie’s choice: How can you ensure no client is left behind?

For any insurance agency looking to better service their client base (which, let’s face it, is every insurance agency), the right solution depends on a delicate balance of factors like budget, operational priorities and long-term goals. 

Sure, focusing on your VIP clients is a great place to start, but scaling this to encompass your entire book of business can be a tricky, tricky feat. And by focusing only on your VIPs, you put your agency at increased risk of client cancellations because every other client across your book of business lacks the understanding or context concerning their policy renewal. 

Automation can help you here, bringing with it benefits like increased speed and consistency. Outsourcing also helps, allowing you to introduce flexibility and (some) human judgment to more complex or unpredictable workflows. But, both approaches come with their compromises. For instance, automation may lack the intelligence needed for nuanced decisions, and outsourcing can introduce dependency and variability in quality. 

This brings us back to our original headline: The industry needs a more intelligent option – it needs renewal intelligence software. This integrated approach combines the efficiencies of automation with the learning opportunities of a human agent, and relies on an AI-powered engine to deliver actionable insights that support informed and accurate policy decision making.

The Quandri Renewal Intelligence Platform ingests policy and carrier data including data from the agent's AMS, declaration pages and carrier- and region-specific rules. It then analyzes and formats this data so agents can quickly surface the most important and value-adding information based on customer preferences. This technology helps to position agents as more proactive and strategic advisors to clients, enabling them to do their best work and bring bespoke client recommendations to every renewal conversation.

Mission impossible: Deploying an intelligent solution that blends technology with human expertise

Independent insurance agencies account for 62.2 percent of all Property & Casualty (P&C) insurance written in the United States, according to Big ‘I’s recent market share report. The same source also found that personal lines insurance premiums are quickly becoming a staple agency offering, accounting for nearly 40 percent of an agency’s entire book of business.

An efficiency-driven automation engine that harnesses the learned intelligence of a human agent will become the future of personal lines insurance, enabling agents to maximize their productivity without risk of burnout. And it’s by combining the strengths of both technology and human judgement that will give agencies the best chance of providing a holistic and personalized experience to every client, time and time again.

To learn more about how renewal intelligence software can help your agency, book a demo with us today.