Insurance agencies urged to adopt artificial intelligence for improved efficiency

AI is rapidly changing the insurance industry, according to Vic Yeh, CEO of Cara. In a recent statement, Yeh emphasized that artificial intelligence is becoming a practical tool for agencies and is among the most significant technological shifts in the sector.

Yeh stated, "The goal of AI in insurance is not to replace people, but to augment your teams, giving you more leverage to spend time with clients."

He pointed out that many agencies face a shortage of time and resources rather than clients or opportunities. Staff such as agents and account executives are often occupied with repetitive back-office tasks like coverage analysis, ACORD and certificate generation, responding to customer questions, entering data into management systems or CRMs, and managing email threads. According to Yeh, this workload can detract from activities that drive business growth, such as building relationships and providing quality coverage.

"AI is an emerging technology that can potentially change everything about back-office workflows," Yeh said. He noted that AI powered by large language models became mainstream in November 2022 with the rise of ChatGPT and has been advancing quickly since then.

Yeh described AI as an assistant capable of working around the clock if implemented correctly. He outlined several areas where AI can assist agencies:

- Service: Drafting responses to routine emails, filling out ACORD forms, generating certificates of insurance (COIs), handling customer calls with Voice AI, triaging inquiries, and cross-checking coverage forms.

- Sales: Comparing coverages, preparing quote proposals for clients, and helping agents demonstrate stronger expertise.

- Operations: Integrating with existing technology stacks like agency management systems (AMS) or CRMs to automate data entry and reduce errors.

He explained that the main benefit comes from combining these tasks into improved workflows. When integrated effectively into agency processes, AI allows staff to reclaim hours each week for higher-value work and client interactions.

Agencies adopting AI are already seeing measurable results. Account executives are able to prepare renewal proposals much faster than before. Producers spend more time engaging with clients rather than handling administrative tasks like form completion or coverage comparison. Staff also report feeling less overwhelmed due to automation of repetitive tasks.

"The takeaway is this: AI is no longer experimental — it’s here now," Yeh said. "Agencies that lean in early are gaining a real advantage. The key question is: how are you adapting AI into today’s workflows to make it work for your teams and clients? We’re excited to see how AI evolves in the coming decade and to collaborate in ensuring AI is beneficial to insurance."