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Farmers Insurance cuts routine servicing time 35% with AI program
Farmers said the effort, launched in June 2024, freed up about 16.4 million hours per year and reduced agent phone and chat volume for new business by 54%.
Farmers Insurance has rolled out an artificial intelligence initiative to reduce the time its agents and staff spend on routine policy servicing, cutting that workload by 35% and redirecting the freed capacity toward sales and deeper customer relationships, according to Insurance Business.
The program, called Agency Servicing Efficiency 35, launched in June 2024 and reached its two-year target this year. Farmers built it by asking more than 8,000 agents, and the roughly 20,000 people they employ, which day-to-day tasks were not adding value.
Farmers said it started with personal lines, where the bulk of policy volume sits, and found similar improvements carried into commercial and specialty products. It is now in a phase two focused on specialty and business insurance lines, where documentation and underwriting demands are higher.
The company calculated agents and staff spent close to 50 million hours a year servicing existing customers before the initiative began, and the 35% cut removed about 16.4 million hours from the process. Farmers also reported inbound phone and chat volume from agents fell by 54% for new business interactions and by 23% for existing business, while keeping its service team size the same as its book of business grew.