Catalyit's State of Tech Report
Thanks to
See how independent agencies are using technology and where the gap between average and high-performing agencies continues to grow.
- Introduction
- Section 1: Executive Summary
- Section 2: About Catalyit
- Section 3: About the Report
- Section 4: What We’re Hearing From Agencies
- Section 5: Change Management & Adoption
- Section 6: Operational Maturity Index
- Section 7: The State of Tech in the Independent Agency
- Section 8: Take Action
- Section 9: Next Steps
- Section 10: Catalyit Partners
- Section 11: FAQs
A Message From Catalyit
Independent insurance agencies are navigating rapid operational change.
Technology is evolving fast. Client expectations continue to rise. AI is reshaping conversations across the industry. At the same time, many agencies are trying to improve efficiency, modernize workflows, and grow without adding more complexity.
That is why this report matters.
Since 2023, Catalyit’s State of Tech Report, thanks to Momentum AMP, has helped agencies better understand technology trends, operational challenges, and industry shifts shaping the independent agency channel.
What Catalyit continues to see is clear: Technology alone is not solving operational problems.
The agencies making the most progress are creating operational clarity. They are building connected workflows, improving accountability, simplifying decision-making, and using technology more intentionally across the business.
The agencies struggling most are often dealing with disconnected systems, underused tools, implementation fatigue, and uncertainty around what to prioritize next.
Operational clarity is becoming a competitive advantage.
We also want to thank Momentum AMP for serving as the signature sponsor of this year’s report and for supporting conversations focused on helping agencies prepare for what’s next.
Our hope is simple: That this report helps you make smarter decisions, align operations, and move forward with greater confidence.
Marit Peters
CEO, Catalyit
A Message From Momentum AMP
Independent agencies are at an inflection point. The expectations placed on them — by carriers, by consumers, by the market itself — have fundamentally shifted. Agencies still running on disconnected systems and manual workflows aren't just inefficient. They're exposed.
That's what makes the work Catalyit is doing so important right now. The State of Tech Report isn't just a survey — it's a mirror. It shows this channel where it actually stands, not where people assume it is. And the gap between assumption and reality is where bad decisions get made.
At Momentum AMP, we built our Agency Everything Platform because independent agencies deserve the same operational infrastructure the captive and direct channels have had for years. Connected systems. Technology that reduces friction and gives agency owners back the time to actually run their business — not stitch together tools that were never designed to work together.
The agencies making real progress right now aren't the ones with the most technology. They're the ones who know what their technology is actually doing. That takes honest data and the willingness to act on it.
That's why we're proud to support this report. Operational clarity isn't a nice-to-have anymore. It's the baseline — and the agencies who get there first will be the ones still standing when the dust settles.
Michael Lebor
El Presidente, Momentum AMP
“The biggest insight: Most agencies no longer have a technology access problem. They have an operational execution problem.”
Angela Ford
Chief Strategy Officer, Catalyit
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Our Take: AMS Platforms Are Evolving
The role of the AMS is changing fast.
What we’re seeing:
- Modular tech stacks are becoming more common
- Integration and workflow flexibility now matter more
- Price and operational fit are driving purchasing decisions
The modern AMS is the agency’s “system of truth,” connecting sales, service, automation, reporting, and operations.
Another major shift: The line between systems built for small versus large agencies is fading. Many AMS platforms now support agencies across multiple growth stages.
Our Take: Customer-Facing AI Tools Are Rapidly Evolving
AI communication tools are becoming more advanced as agencies explore AI-powered client support and automation.
What we’re seeing:
- AI tools now offer human-like interactions, voice options, and 24/7 responsiveness
- Agencies retain control over scripts, workflows, and brand voice
- AI tools are becoming extensions of the agency experience
- Human oversight remains essential to maintain quality and accuracy
- Agencies are reevaluating AI platforms more frequently as capabilities accelerate
Our Take: Customer Relationship Management Is Moving Beyond Sales and Marketing
Independent agencies are beginning to view CRM platforms less as sales tools and more as operational systems that help improve workflows, automate client communication, strengthen retention, and create a better overall customer experience.
What we’re seeing:
- CRMs are no longer viewed only as sales and marketing tools
- Agencies are increasingly using CRMs for renewals, workflows, automation, and client touchpoints
- Reported CRM adoption remains relatively low at 29%
- Many agencies already own CRM functionality through bundled platforms, but underutilize it
- Extra licensing costs and past integration challenges have slowed adoption
- Duplicate data entry between the CRM and AMS platforms has historically created friction
Our Take: Agencies Still Prefer Specialized Financial Tools
Independent agencies continue to separate accounting operations from their agency management systems, even as more AMS platforms expand their built-in accounting capabilities.
What we're seeing:
- Many agencies still rely on external accounting systems alongside their AMS.
- QuickBooks remains the preferred platform for payroll and core accounting operations.
- That trend continues even as AMS platforms like Applied Epic and AMS360 offer built-in accounting functionality.
Why agencies choose outside systems:
- Stronger accounting and payroll workflows
- Familiar financial reporting tools
- Flexibility beyond client invoicing
- Preference for specialized systems over “all-in-one” platforms
Our Take: More Than Half of Agencies Are Missing Out.
Agencies that do have a website underutilize its true business potential.
What we're seeing:
- Agencies often focus on website appearance more than performance
- Website analytics are rarely monitored consistently
- Many sites are not actively used for sales or lead generation
- Cookie-cutter templates remain common across the industry
- Local firms often create stronger credibility by reflecting community-specific messaging and market nuances
Our Take: Video Conferencing Tools Are Widely Owned, Often Underutilized
Most agencies already have video conferencing tools in place, but many are only scratching the surface of what those platforms can actually do.
What we're seeing:
- Many agencies still view Teams and Zoom only as meeting tools, not full communication platforms
- Built-in collaboration, workflow, and client engagement features are often underused
- Tech stack audits frequently uncover overlapping tools and unused functionality
- Features like transcriptions, recordings, and internal collaboration remain largely untapped across many agencies
Our Take: E-Signature Tools Are Evolving Beyond Just Signatures
Independent agencies are reevaluating e-signature tools as more platforms add native signing capabilities and agencies look to simplify workflows, reduce software overlap, and improve operational efficiency.
What we're seeing:
- DocuSign remains the most recognized name in the market
- Many agencies overlook built-in e-signature tools already included in platforms like Adobe
- Agencies often use e-signature tools only for signing documents, missing broader workflow and form capabilities
- Few agencies regularly reassess pricing, integrations, or feature usage
Our Take: VoIP Systems Are Becoming Smarter, More Connected Platforms
Most agencies now operate VoIP systems, but many still use them like traditional phone lines.
What we’re seeing:
- Many agencies use VoIP primarily for inbound and outbound calls
- Advanced features like transcription, recording, analytics, and workflow integrations remain underutilized
- Agencies often view VoIP as a phone system, not an operational platform
- AMS integrations and data retention policies are becoming major buying factors
- Lightspeed and RingCentral continue to lead adoption across agencies
- Some agencies still rely on local or regional VoIP vendors, creating mixed experiences around support and functionality
Our Take: Personal Lines Quoting/Rating Tools Are Evolving
The personal lines rating landscape is shifting as agencies demand faster workflows, better integrations, and more flexibility across carrier connections.
What we’re seeing:
- AMS integrations strongly influence tool adoption and workflow decisions
- Carrier connectivity remains a major operational challenge
- New vendors are introducing more flexible quoting and data access models
- Agencies want rating tools that fit into broader operational workflows, not standalone systems
- Ease of use, speed, and operational fit continue driving purchasing decisions
Our Take: Commercial Line Raters Are a Specialized Tool, Not a Universal One
Commercial line raters continue to see lower overall adoption across agencies, but that may be exactly what the market expects.
What we're seeing:
- Commercial line raters are used most heavily by small commercial agencies
- Larger commercial agencies often bypass these tools entirely
- Many raters only support specific lines of business or limited carrier markets
- Usage varies widely depending on agency focus and market needs
Our Take: Benefits Management Systems Are Still Emerging Across Agencies
Benefits-specific management systems remain a smaller part of most agency tech stacks today, but that may change over the next several years.
What we’re seeing:
- Usage increases when agencies grow their employee benefits business
- Major solutions providers are beginning to bundle benefits management tools into broader AMS ecosystems
- Agencies are looking for more connected client, policy, and operational visibility across departments
- Some platforms still lack quoting and workflow tools that teams need day to day
Our Take: Benefits RFP/Quoting Automation Continues To Expand
Benefits quoting systems are becoming more integrated, automated, and operationally valuable for agencies.
What we’re seeing:
- Agencies are replacing spreadsheet-heavy workflows with automated benefits platforms
- Benefits quoting systems significantly reduce manual data entry and processing time
- System selection is often influenced by AMS compatibility and existing integrations
- Solution providers continue improving automation, pricing, and ecosystem connectivity
Our Take: Collaboration Tools Are Becoming Operational Platforms
Agencies continue expanding the use of AI-powered communication and collaboration tools.
What we're seeing:
- Many agencies still underutilize AI beyond internal communication
- Agencies are increasingly using chat tools for client communication and engagement
- Collaboration platforms are becoming more embedded in daily operations
Our Take: Email Marketing Tools Are Evolving Beyond Sales
Email marketing platforms are core tools for client engagement and retention for agencies.
What we’re seeing:
- Agencies are using marketing automation for retention, education, and ongoing client communication
- AMS integrations are improving personalization and workflow efficiency
- Agencies continue adopting specialized marketing platforms beyond built-in AMS tools
- Automation and personalization continue driving adoption
Our Take: Text Messaging And AI Communication Are Accelerating
SMS and AI-powered communication tools are becoming more common across agency workflows.
What we're seeing:
- AMS integrations are streamlining messaging workflows and data capture
- Younger consumers increasingly prefer texting over phone calls
- Communication platforms are improving validation, security, and personalization
- Clean data is becoming essential for effective automation
Our Take: Digital Intake Tools Are Reducing Agency Friction
Modern intake tools are helping agencies simplify data collection, reduce duplicate entry, and improve submission workflows.
What we’re seeing:
- Intake tools have evolved far beyond fillable PDFs
- AMS and carrier integrations are reducing manual entry
- “Enter once, deploy everywhere” workflows are gaining traction
- Many agencies still underestimate how advanced these tools have become
Our Take: Commissions and Billing Tools Continue Expanding
Agencies have more options for managing commissions, billing, and payment workflows.
What we’re seeing:
- More third-party platforms are entering the market
- Many agencies still rely on internal workflows and existing technology tools, such as their AMS
- Agencies are prioritizing efficiency and reducing duplicate work
- Adoption remains inconsistent despite growing vendor availability
- Operational fit continues driving purchasing decisions
Our Take: Data Analytics Is Becoming A Real-Time Operational Tool
Data analytics adoption continues growing as agencies seek faster, smarter operational insights.
What we’re seeing:
- Agencies are moving from historical reporting to real-time decision-making
- Reporting tools now deliver deeper visibility across producers, carriers, workflows, and business lines
- Real-time data is helping agencies identify problems and adjust strategies faster
- Improved affordability and smarter dashboards are expanding adoption across agencies of all sizes
Our Take: Robotic Process Automation Is Becoming a Core Automation Layer for Agencies
RPA continues helping agencies reduce repetitive manual work and improve operational efficiency.
What we’re seeing:
- RPAs automate tasks like downloading, processing, and attaching carrier documents
- Agencies are reducing servicing workload through workflow automation
- AI is expanding RPA capabilities into document processing and downstream workflows
- Time savings remain the primary driver of adoption
- Some vendors are shifting toward transaction-based pricing models
Our Take: Client Portals (Mobile Apps) Are Becoming Standard
Client portals are playing a larger role in the modern agency experience.
What we’re seeing:
- Portals provide secure, mobile-friendly access to policies, documents, and communication
- Agencies are reducing reliance on email and printed paperwork
- AMS platforms continue expanding portal capabilities
- Client Portals are improving convenience and client engagement
- Client demand for digital self-service continues to grow
Our Take: Digital Payments Are Driving Agency Efficiency
Digital payment adoption continues to grow as agencies look to simplify billing, improve security, and reduce manual work.
What we’re seeing:
- Digital payments are streamlining invoicing and reconciliation
- AMS integrations are reducing servicing friction
- Premium finance vendors are entering the digital payment space with automated workflows
- Agencies are saving time by reducing manual payment processing
- ePayPolicy remains a strong player due to early adoption and deep AMS integrations
Angela Ford
Chief Strategy Officer
Marit Peters
Chief Executive Officer
Jason Furst
Chief Operating Officer
Katrina Marschner
Customer Experience Lead
Evan Leitch
Data Specialist
Casey Nelson
Director of Consulting