.svg)
Insurance Industry Trends
-
13 minute
Sonant AI
The US insurance sector faces a workforce crisis unlike anything in recent memory. The industry will lose around 400,000 workers by 2026, with 50% of current insurance professionals expected to retire within 15 years. This isn't a distant threat - it's happening now, reshaping how agencies approach talent acquisition and operational planning.
According to Swiss Re research, demographic changes will aggravate current skills shortages in the insurance sector in the medium-term. Currently, 538,000 employees aged 55-64 and 186,000 aged 65+ work in insurance, while only 25% of workers fall under age 35. The math is troubling: experienced professionals are exiting faster than new talent enters.
Simply hiring more people isn't a viable solution for most agencies. A new customer service representative costs $40,000-$55,000 annually in salary alone. Factor in benefits, training, and overhead, and total costs climb to $60,000-$80,000 per position. For small to midsize brokerages, adding multiple full-time employees can strain budgets beyond breaking points.
Industry turnover has surged from the historical 8-9% to 12-15% currently, creating constant recruitment pressure. Each departure triggers a costly cycle: posting positions, screening candidates, conducting interviews, onboarding, and training. Meanwhile, remaining staff absorb additional workload, accelerating burnout and fueling more departures.
The situation creates a perfect storm for insurance staffing shortage solutions. Offshore insurance staff offer a strategic bridge - providing skilled labor at competitive rates while agencies modernize operations and develop long-term workforce strategies.
While AI and digitization promise relief by automating many tasks, Swiss Re notes this also introduces new risks requiring human oversight. The most effective approach combines offshore talent with AI-powered solutions like those from Sonant AI, creating comprehensive staffing strategies that address both immediate needs and future scalability. Agencies that handle more calls without adding staff gain competitive advantages in this constrained labor market.
Not every position translates well to offshore environments. However, several core functions deliver exceptional results when staffed internationally. Understanding which roles work best helps agencies maximize their offshore investment while maintaining service quality.
Claims processing represents one of the strongest use cases for offshore insurance staff. First notice of loss (FNOL) intake, documentation gathering, and status updates can all be handled remotely with proper training and system access. These tasks require attention to detail and consistent execution - qualities abundant in well-trained offshore teams.
Offshore staff can process claims during off-peak US hours, reducing backlog and accelerating resolution times. When a policyholder files a claim at 6 PM Eastern, an offshore team in the Philippines (already at their desks) can begin processing immediately rather than waiting until the next business day. This time-zone advantage transforms potential delays into service differentiators.
The integration between offshore claims teams and automated claims workflows creates powerful efficiencies. AI systems capture initial information and route to appropriate offshore specialists, who then handle complex documentation and follow-up activities.
Policy administration tasks - endorsements, renewals, and certificate issuance - require consistency and accuracy rather than licensing. Offshore teams excel at:
These functions often consume significant time from licensed producers who could focus on revenue-generating activities. Shifting administrative burden to offshore staff frees domestic talent for client relationships and sales conversations.
Routine customer inquiries - policy status questions, payment information, coverage explanations - translate effectively to offshore environments. With proper training on products and procedures, offshore representatives provide consistent service while domestic staff handle complex situations requiring deeper expertise.
Many agencies combine offshore service representatives with AI voice agents for customer service to create support experiences. AI handles initial contact and routine requests; offshore staff manage moderate complexity issues; licensed professionals address situations requiring technical judgment or relationship management.
While underwriting decisions require licensed professionals, substantial support work can shift offshore. Research tasks, data compilation, and preliminary risk assessments benefit from dedicated attention that offshore teams provide. Key functions include:
Successful offshore staffing requires more than finding affordable labor. Agencies that thrive with international teams invest thoughtfully in selection, training, and integration processes. The difference between frustration and success often lies in implementation details.
Agencies typically choose between Business Process Outsourcing (BPO) providers and direct hiring through staffing platforms. Each approach carries distinct advantages.
BPO providers offer turnkey solutions with established infrastructure, training programs, and management oversight. They handle HR administration, facilities, and compliance - reducing agency burden. However, they typically cost more than direct hires and may provide less control over individual team members.
Direct hiring through platforms like OneCoreDevIT or similar services gives agencies more control over selection and often lower per-person costs. According to OneCoreDevIT's research, top offshore health insurance roles span claims processing, policy administration, and customer service functions. Direct hiring requires more internal management but builds dedicated teams aligned with agency culture.
Effective onboarding for offshore insurance staff takes longer than domestic hires. Plan for 4-6 weeks of structured training covering:
Document everything. Written procedures, video tutorials, and reference guides become invaluable as teams scale. Agencies using AI to boost efficiency often find these same documentation practices support both offshore teams and automation initiatives.
Time zone differences require intentional overlap planning. Most US-Philippines arrangements allow 3-4 hours of real-time collaboration daily. Establish clear expectations for:
Many agencies find that 24/7 support models combining AI, offshore staff, and domestic teams provide superior coverage compared to any single approach.
Technology infrastructure determines whether offshore arrangements succeed or struggle. Offshore insurance staff need access to the same systems domestic employees use - agency management platforms, carrier portals, phone systems, and communication tools.
Modern cloud-based AMS platforms like Applied Epic, Hawksoft, and AMS360 support remote access natively. Security configurations should include:
Work with your AMS provider and IT support to configure offshore access properly. Many carriers also require specific security protocols for portal access from international locations.
Connecting offshore staff to agency phone systems requires thoughtful setup. VoIP solutions enable international team members to answer calls with local numbers, transfer to US-based staff, and maintain call quality standards.
However, phone handling creates unique challenges for offshore teams. Language considerations, cultural nuances, and caller expectations can complicate direct customer interactions. Many agencies reserve phone duties for specific offshore team members with strong English skills, while routing other calls through AI receptionist solutions that handle initial contact before transferring to appropriate resources.
The combination of AI phone answering and offshore support creates powerful coverage. As detailed in our guide on AI phone answering for insurance agencies, intelligent call routing ensures each interaction reaches the right resource - whether AI, offshore staff, or domestic professionals.
Establish clear metrics and regular review processes for offshore teams. Track key performance indicators including:
The offshore staffing continues evolving rapidly. Understanding emerging trends helps agencies position themselves advantageously as the market matures.
While the Philippines and India dominate insurance outsourcing, agencies increasingly explore alternative locations. South Africa offers English fluency with favorable time zone overlap for East Coast operations. Latin American countries - Colombia, Costa Rica, and Mexico - provide near-shore options with cultural familiarity and real-time collaboration possibilities.
Each location carries distinct trade-offs in cost, talent availability, infrastructure reliability, and cultural alignment. Forward-thinking agencies develop relationships across multiple markets rather than concentrating all offshore resources in single locations.
According to the Federal Insurance Office annual report, technology adoption continues reshaping insurance operations. The most effective staffing strategies now combine multiple approaches - AI automation, offshore teams, and domestic professionals - each handling tasks suited to their strengths.
Offshore staff increasingly work alongside AI tools rather than being replaced by them. AI phone agents and virtual assistants handle routine interactions while offshore teams manage exceptions, complex cases, and quality oversight. This hybrid model delivers better outcomes than either approach alone.
Sonant AI exemplifies this integration approach, providing AI assistant capabilities that complement human teams. Routine calls flow through AI handling; complex inquiries route to appropriate staff - whether domestic or offshore - based on expertise requirements and availability.
As the offshore insurance market matures, providers increasingly develop specialized capabilities. Rather than generalist BPO services, teams build deep expertise in specific areas:
This specialization trend favors agencies seeking targeted expertise rather than generic administrative support. The EY Global Insurance Outlook identifies operational efficiency as a key industry priority, driving demand for specialized offshore capabilities.
Regulatory requirements around data handling continue tightening. Agencies must verify that offshore partners maintain appropriate security certifications, data protection practices, and compliance frameworks. Key considerations include:
Developing an effective offshore strategy requires honest assessment of agency needs, capabilities, and growth objectives. Not every agency benefits equally from offshore staffing, and implementation approaches vary significantly based on circumstances.
Offshore insurance staff work best when agencies have:
Agencies handling high volumes of live transfer leads often find offshore teams essential for timely follow-up. Without adequate staffing, leads go cold and conversion rates suffer. Offshore staff provide the bandwidth needed to work every opportunity.
Rather than wholesale offshore transition, successful agencies typically phase implementation:
The Risk Strategies market outlook emphasizes operational efficiency as a competitive differentiator. Agencies that systematically build offshore capabilities gain sustainable advantages over competitors relying solely on increasingly expensive domestic labor.
Establish baseline metrics before offshore implementation to accurately measure impact. Track both quantitative and qualitative factors:
Quantitative metrics:
Qualitative factors:
Many agencies discover that AI lead qualification combined with offshore follow-up dramatically improves conversion rates. The AI handles initial screening and prioritization; offshore staff execute structured follow-up sequences; licensed producers close warm, qualified opportunities.
The most resilient agencies don't choose between domestic hiring, offshore staff, and AI solutions - they integrate all three into comprehensive s. Each component handles tasks suited to its strengths while compensating for others' limitations.
Consider how a well-designed hybrid model handles incoming calls:
This model ensures no call goes unanswered while optimizing resource allocation. Remote customer service transformation enables this flexibility, breaking the traditional assumption that service requires physical presence.
Integration platforms and workflow automation connect hybrid teams effectively. Key technology investments include:
The comprehensive guide to AI tools for insurance agencies details technology options supporting these integrated workflows. Choosing tools that work together prevents the fragmentation that undermines hybrid team effectiveness.
The insurance workforce will continue evolving. Agencies building flexible staffing models today position themselves for whatever changes come. Key principles for future-proofing include:
Understanding AI virtual assistants for insurance SMBs helps agency leaders make informed decisions about technology investment alongside offshore staffing. Neither replaces the other; together they create capabilities neither achieves alone.
The insurance industry's workforce challenges demand proactive responses. Waiting for labor markets to ease or costs to stabilize means falling behind competitors who act now. Offshore insurance staff provide immediate relief while agencies develop longer-term workforce strategies.
Success requires thoughtful implementation rather than reactive hiring. Assess which roles translate best to offshore environments. Select partners or platforms aligned with your quality standards. Invest in proper training and integration. Measure results and continuously improve.
Most importantly, recognize that offshore staffing works best as part of comprehensive strategies combining multiple approaches. AI solutions like Sonant AI handle routine interactions with immediate response. Offshore teams provide scalable capacity for processing and support. Domestic professionals focus on relationships and complex judgment calls. Together, these resources create agencies that serve clients better while controlling costs.
The agencies thriving in 2026 and beyond won't be those who found single magic solutions. They'll be those who built flexible, resilient operations capable of adapting to whatever workforce and market conditions emerge. Offshore insurance staff represent one essential component of that resilience.
Start building your comprehensive staffing strategy today. When the phone rings, make sure someone - or something - is always there to answer.
The AI Receptionist for Insurance
FOLLOW SONANT ON
Our AI receptionist offers 24/7 availability, instant response times, and consistent service quality. It can handle multiple calls simultaneously, never takes breaks, and seamlessly integrates with your existing systems. While it excels at routine tasks and inquiries, it can also transfer complex cases to human agents when needed.
Absolutely! Our AI receptionist for insurance can set appointments on autopilot, syncing with your insurance agency’s calendar in real-time. It can find suitable time slots, send confirmations, and even handle rescheduling requests (schedule a call back), all while adhering to your specific scheduling rules.
Sonant AI addresses key challenges faced by insurance agencies: missed calls, inefficient lead qualification, and the need for 24/7 client support. Our solution ensures you never miss an opportunity, transforms inbound calls into qualified tickets, and provides instant support, all while reducing operational costs and freeing your team to focus on high-value tasks.
Absolutely. Sonant AI is specifically trained in insurance terminology and common inquiries. It can provide policy information, offer claim status updates, and answer frequently asked questions about insurance products. For complex inquiries, it smoothly transfers calls to your human agents.
Yes, Sonant AI is fully GDPR and SOC2 Type 2 compliant, ensuring that all data is handled in accordance with the strictest privacy standards. For more information, visit the Trust section in the footer.
Yes, Sonant AI is designed to integrate seamlessly with popular Agency Management Systems (EZLynx, Momentum, QQCatalyst, AgencyZoom, and more) and CRM software used in the insurance industry. This ensures a smooth flow of information and maintains consistency across your agency’s operations.
.svg)
.svg)
