‍How AI is reshaping the broker space

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Artificial intelligence (AI) is transforming industries across the board, including insurance. From underwriting and policy analysis to claims processing and customer service, the impact of AI is undeniable. But what does this mean for insurance brokerages?

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At ITC Vegas 2024, BrokerTech Ventures (BTV) led the broker-focused conversation as the headline sponsor of the ITC Brokers program. Among the standout sessions was a discussion featuring industry experts Garrett Droege, Senior Vice President and Director of Innovation at IMA Financial Group, Inc., and Garrett Koehn, Chief Innovation Officer and President of ProExec CRC Insurance Services. 

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Insights from their session provide a compelling look at how AI is revolutionizing the brokerage space, enhancing efficiency, and driving competitive advantages, while also raising important questions about accuracy, ethics, and the role of human expertise.

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AI’s growing role in insurance brokerages

AI is already being integrated into various aspects of the insurance process. In brokerage operations, AI-powered tools help brokers analyze vast amounts of data to provide better policy recommendations and improve customer interactions.

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As Droege noted, “The impact of AI is vast, and we’re only scratching the surface.” Some of the most exciting developments include:

• Automated underwriting – AI can analyze customer data in real-time to assess risk and determine policy eligibility.
• Claims processing – Machine learning algorithms detect fraud, expedite claims, and improve overall customer satisfaction.
• Policy recommendations – AI-driven analytics help brokers match clients with policies based on historical data and predictive modeling.

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Balancing AI’s benefits with challenges

While AI offers numerous advantages, it also brings challenges. One of the biggest concerns in the industry is the balance between AI-driven automation and human expertise. Many in the brokerage space worry about over-reliance on AI and whether it can truly match the decision-making of experienced brokers.

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“There’s always a debate on whether to build AI solutions in-house or buy them,” said Koehn. “And beyond that, we need to consider accuracy—how does AI compare to a broker’s judgment? And what happens when AI gets it wrong?” 

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Other challenges include:

• Data privacy and security. With AI analyzing vast amounts of personal and financial data, making sure brokers are in compliance with regulations is critical.
• Bias in algorithms. AI models are only as good as the data they are trained on. If the data contains biases, AI can reinforce existing disparities.
• The need for human oversight. AI should complement human decision-making rather than replace it. Brokers must continue to provide personalized advice and ensure AI-driven recommendations align with client needs.

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Real-world AI applications in insurance

According to Droege and Koehn, several companies are already leveraging AI to transform insurance brokerage operations. Some notable examples include:

• PowerBroker – Uses AI to streamline the policy application process, reducing paperwork and improving efficiency.
• Qumis – Focuses on AI-driven risk assessment, helping brokers identify potential issues before underwriting a policy.
• Comulate – Enhances broker decision-making with AI-driven analytics while ensuring human oversight remains integral.
• Sixfold – Specializes in fraud detection, using AI to analyze claims data and flag suspicious activities.

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The key takeaway from these companies is that AI should be seen as an enhancement rather than a replacement for brokers. As Koehn put it, “AI isn’t about taking jobs away—it’s about making brokers more effective and efficient.”

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Looking ahead, AI’s role in insurance brokerage is only expected to grow. Emerging technologies like natural language processing (NLP) and deep learning will further refine AI-driven insights, making insurance more personalized and accessible.

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The impact of AI on insurance education

Beyond brokerage firms, AI is also transforming insurance education. Institutions like Drake University are preparing the next generation of professionals with AI-focused programs that blend technical expertise with ethical considerations.

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“AI has the potential to reshape how we teach future insurance professionals, offering real-time simulations and data-driven learning experiences,” says Chris Porter, Director of the AI program at Drake University.

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Porter emphasizes that Drake’s AI curriculum is designed not just to teach technical skills but to cultivate critical thinking. “The goal is to equip students with an understanding of how AI tools work, when they should be applied, and where they should be applied—insurance being one of those key areas,” he explains. “The program places a strong emphasis on the ethical, legal, and societal implications of AI, ensuring students are thoughtful about what is reasonable to automate.”

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Beyond coursework, Drake integrates real-world applications into its AI education. “We provide students with a lot of project-based work that’s open-ended, so they can problem-solve and figure out how to do things on their own,” Porter says. Students work with anonymized client data to build predictive models and make recommendations, gaining hands-on experience with industry-relevant AI applications.

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The future of AI in insurance

AI is undoubtedly changing the landscape of insurance brokerage. While it presents challenges, its benefits—such as increased efficiency, better risk assessment, and improved customer service—make it a powerful tool for the industry.

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As AI continues to evolve, brokers must embrace technology while maintaining the human expertise that makes the industry thrive. As Droege and Koehn summed it up in their discussion, the future of insurance is not AI versus humans—it’s AI and humans working together to provide smarter, more effective solutions for clients.

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