PIA Connection Online

For years, agencies have focused on growth the same way: generate more leads, write more business, repeat. But most agencies are sitting on a tremendous amount of client data that may be just as valuable as new business. Insurance agents have always been in the information business. What’s changing is the ability to turn that data into action. Things like customer details, policy histories, coverage selections, communication preferences, claims activity, business operations, life events, and thousands of other data points, offer valuable ways to cross sell and strengthen client retention.

“Everything we do is data,” says Frank Sentner of Sentwood Consulting, who has spent decades working with agencies, carriers, and technology providers. “If we’re not paying attention to data, it is the worst mistake we can make.”

As technology continues to evolve, especially with the impact of AI and the ability to analyze data to make it actionable, many are discovering that better use of the information they already have can improve retention, uncover new revenue opportunities, strengthen client relationships, streamline operations, and position them to take advantage of emerging technologies.

“Good agencies tend to be less intuitive in their decision-making and more quantitative, more rule-based,” explains Matthew Fastow, CEO of CoverFlow. “Rather than relying solely on the experience of a few veteran producers or account managers, they’re creating repeatable processes, measurable standards, and data-driven ways to evaluate opportunities.”

Most Agencies Have More Data Than They Realize

The conversation around data often starts with technology. But that’s the wrong approach. The bigger issue is about collecting the right information, maintaining it, and putting it to work. “The biggest diamonds are already in the data within our management system,” explains Chris Paradiso, president of Paradiso Insurance.

In many agencies, once the policy is issued, much of that information sits dormant until renewal. Buried inside those records are clues about additional coverage needs, changing customer circumstances, business opportunities, and retention risks.  This can be a big mistake, according to Paradiso. “Recently I was reviewing what I thought was a pretty standard personal lines account when I discovered the customer owned three separate businesses that we didn’t insure. The opportunity had been there all along. We hadn’t collected enough information or asked enough questions to uncover it earlier,” he explains.

This is a common scenario. A commercial account may need cyber coverage. A homeowner may have a valuable collection, recreational vehicle, or umbrella exposure that has never been discussed. The information needed to uncover those needs is often already available or can be captured through more intentional conversations and stronger data practices.

Data becomes even more valuable when agencies use it to systematically evaluate their existing book. Fastow says many agencies don’t know how much of their business falls short of their own ideal coverage recommendations. By auditing policies against established coverage standards, agencies can identify protection gaps, strengthen account rounding efforts, prioritize outreach, and uncover ways to better serve clients while generating additional revenue.

Fixing the Quality Problem

But data only creates value if it’s accurate. In fact, data quality remains one of the biggest challenges for agencies. Names are misspelled, contact information becomes outdated and fields are often left incomplete when the original business is written. Another common issue: information entered in one system doesn’t always match what appears in another. Those issues may seem minor until agencies begin relying on that information for marketing campaigns, customer communications, reporting, automation, and AI-powered tools.

“It’s really important to audit data continuously, reviewing everything from contact information and communication preferences to policy details and customer records,” says Paradiso. “If your data isn’t accurate in your management system, and you’re running your reports out of your management system, those reports are inaccurate.”

Bad data doesn’t just create operational headaches. It can lead agencies to make poor decisions. A producer can’t identify the right cross-sell opportunity if key customer information is missing. A marketing campaign loses effectiveness if it goes to the wrong place. And AI tools can only be as effective as the information feeding them.

AI Is Raising the Stakes

Artificial intelligence has become one of the most discussed topics in insurance. Yet its rise is shining a spotlight on the data quality issue. AI can help agencies analyze policies, automate workflows, identify coverage gaps, and reduce administrative burdens. But it can also magnify existing problems. Poor information produces poor outcomes.

“What is feeding the brain of the AI? That’s absolutely critical,” says Paradiso. “The agencies seeing the greatest success with automation are often the same agencies that have invested the most effort in organizing and maintaining their data.”

As agencies collect more information and adopt more technology, it highlights another important issue: data access and control. Who has control of the customer information? How is it being used? Who has access to it? “These questions will become increasingly important as agencies work with a growing ecosystem of technology providers,” explains Sentner. “The data belongs to the entity, the person, or the business it represents,” he says.

Customers are becoming more aware of privacy issues, more cautious about sharing information, and more interested in understanding how their data is being used. For independent agencies, trust has always been one of the channel’s defining strengths. Protecting customer information—and being transparent about how it is used—may become an increasingly important part of maintaining that advantage.

Collecting on the Dividend

The good news is that agencies don’t need a massive technology budget to become more data-driven. The process often starts with a few simple questions:

• Can you trust the information in your systems?
• Are you collecting the information needed to identify opportunities and serve customers effectively?
• Are you using that information to guide decisions?
• Are you acting on what you already know?

The agencies that answer yes to those questions are discovering that data isn’t just something they collect. And like any valuable asset, the more effectively it’s managed, the greater the dividends it can deliver.

---

Five Principles of Good Data Management

Agencies don’t need perfect data to become more data-driven. But they do need a disciplined approach. Here are five principles agency leaders can implement today.

1. Treat Data as an Asset

Agencies carefully manage their books of business, client relationships, and finances. Data deserves the same attention. Every customer record contains information that can help improve retention, identify cross-selling opportunities, enhance service, and drive growth. If data is viewed as an administrative byproduct rather than a business asset, much of its value will be lost.

2. Focus on Quality Before Technology

Artificial intelligence, automation, and analytics tools are only as good as the information feeding them. Before investing in new technology, agencies should regularly review customer records for missing information, duplicate entries, outdated contact details, and other common data issues.

3. Capture Information Consistently

Data becomes more valuable when everyone in the agency collects and enters information the same way. Documenting procedures, standardizing fields, and establishing clear workflows helps ensure information remains accurate and usable across the organization—even as employees change roles or new team members join.

4. Use Data to Drive Action

Collecting information isn’t the goal. Acting on it is. Agencies should use data to identify coverage gaps, uncover cross-selling opportunities, prioritize retention efforts, improve communication, and strengthen client relationships. The most valuable data is the data that leads to a decision.

5. Protect Customer Trust

Clients are increasingly concerned about how their information is collected, stored, shared, and used. Agencies should understand how their technology vendors handle customer data, communicate clearly with clients about privacy practices, and ensure information is used only for legitimate business purposes. Trust remains one of the independent agency channel’s greatest competitive advantages.