Last month eight Celent analysts spent four days in Las Vegas attending ITC Vegas (formerly “InsureTech Connect”). It is one of the largest gatherings in the insurance / insurtech ecosystem, bringing together insurance carriers, technology providers, startups, brokers/agents, investors and regulators. The conference included over 9,000 attendees from across the insurance industry, hundreds of exhibitors / solution providers, and 14 stages of educational content covering topics such as Gen AI, customer acquisition & retention, and next-gen of claims and underwriting. The event is as much a networking-event as a conference, so Celent was very busy meeting with clients and prospects.

Celent held its Pre-Conference Kickoff Summit: Disrupt, Decode, Deliver – The Future Hits Fast on Oct 14th. We presented a half-day immersive session designed for senior professionals focused on strategy, transformation, and innovation. Six sessions covered topics such as the evolving insurtech ecosystem, catastrophe management, underwriting modernization, and the emerging impact of Generative AI. The sessions included interactive panels and expert presentations.

Over the next six weeks we will be blogging about each session giving a summary of the presentations and panel discussions. My session, Commissions, Compensation, and Change – What Agents Are Saying in 2025, focused on the evolving landscape of the insurance industry, particularly in terms of compensation, technology, and generational changes. You can watch the session here. Panelists included:

• Chris Paradiso, Independent Insurance Agent, Paradiso Financial and Insurance Services
• Tracey Brown, SVP, General Manager, Vertafore
• Karlyn Carnahan, Head of Insurance - North America, Celent

The panel emphasized the importance of integrating technology to enhance data utilization and personalization in compensation structures. The discussion also highlighted the potential of AI to transform sales processes and the need for agents to adapt to these technological advancements.

Some keys points that were discussed included:

• Compensation and Motivation: The panel discussed the importance of compensation structures in motivating agents. It was highlighted that while money is a significant motivator, the ease of use of technology and the ability to quickly issue policies are equally important.
• Technology and Data Utilization: There was a strong emphasis on the need for technology solutions that leverage data from multiple platforms to motivate agents effectively. The discussion included the importance of having a technology solution that integrates data from agency management, underwriting, and distribution management systems.
• Personalization and Transparency: Agents are increasingly looking for personalization and transparency in how commissions are paid and how products benefit both agents and policyholders. The panelists discussed the potential for compensation to be customized at the individual agent level.
• Generational Shifts in the Industry: The session highlighted a demographic shift towards younger agents, with a significant portion being millennials. This shift is influencing how business is conducted, with younger agents seeking simplified processes and technology-driven solutions
• Challenges in Commission Reconciliation: It was noted that many agencies do not reconcile their commissions accurately, which could lead to financial discrepancies. This issue was attributed partly to a lack of necessary tools and partly to generational differences in financial management skills.

The topic of AI was front and center at the conference and not surprisingly it came up in the commission discussion. AI has the potential to change the way agents sell and how commissions are structured. AI is expected to force agents to stay competitive by providing tools that quickly identify policy weaknesses to ensure the right products and coverages are sold.

Future commission trends include:

• Integrating Technology: Embracing technology solutions that integrate data across various platforms is crucial for motivating agents and enhancing business operations.
• Personalizing Compensation: There is a growing trend towards personalizing compensation structures to better align with individual agent performance and preferences.
• Adapting to AI and Generational Changes: Agencies and insurers can stay competitive by leveraging AI tools and adapting to the preferences of a younger, tech-savvy workforce.

Look for other blogs and video links in this series over the next few weeks.