The agency network remains a cornerstone of insurance distribution. However, to remain competitive, it must face significant challenges in synergy with insurers working on advanced service models, digital tools and capabilities, customer experience, and operational efficiency.
Non-life premiums are growing, and the Italian insurance market continues to evolve. Yet, the country still records one of the highest Protection gaps in Europe. Underinsurance in Italy is a structural phenomenon, driven by cultural, social, and economic factors: reliance on public welfare, low levels of financial literacy, a highly fragmented entrepreneurial landscape, and long-standing household habits. This environment puts increasing pressure on the system and calls for a fundamental rethinking of the distribution model—starting with the agency channel.
Agencies represent a key node in the Italian insurance system: with over € 35 billion in Life and Non-life premiums, they continue to provide proximity, trust, and qualified advisory services. According to ANIA, traditional insurers achieved a customer retention rate of 83.9% in 2024, 17 percentage points higher than direct players.
However, in a fast-evolving market, the long-standing strength of the agency channel must be supported by a structural transformation of its operating and relational model. The agency network is facing a range of concrete economic, operational, and commercial challenges: ongoing market consolidation, the sustainability of sub-networks, and the increasing need to harness data through advanced technologies are among the key issues shaping its future.
To build the agency of the future, it is essential to focus on success factors such as advanced customer relationship management, specialization of service models, an expanded advisory offering, and growth based on scale and operational efficiency.
At the same time, insurers must align their strategic priorities with the evolution of collaboration models with their distribution networks and innovate both their offering and the customer experience. It is also crucial to maximize commercial effectiveness through dedicated tools and invest in the development of the capabilities and technologies needed to lead this transformation successfully.
Italy's Non-Life insurance penetration is only 1.9% of GDP, among the lowest in Europe and well below the EU average.
Larger, diversified agencies achieve higher revenues but face complexity.
Public welfare reliance and long waiting times are pushing Italians toward private healthcare.
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