US insurers are trying to diversify their distribution channels to achieve growth in a “hypercompetitive” market, according to researcher Celent.

The diversification is taking place in both personal lines and commercial lines, which are dominated by independent agents – the equivalent of insurance brokers in Australia.

Celent says technology will enable insurers to gain more customers, and warns that insurtech disruptors cannot be ignored.

Much of the emphasis is on expansion into new markets and techniques to retain customers, with some insurers focusing on the way they pay and support agents by “placing their priority on servicing high priority distribution channels and improving service to distributors”.

“Managing agents well requires a focus on both the use of clean data and consistent delivery of processes,” the report says. “Increasingly, sophisticated analytics are being used to optimise the resources needed to maximise production.”

Other insurers are setting up new niche brands to enhance direct channels, and some are working together to provide specialised products to a wider market.

See ANALYSIS.