The Best Agency Management Systems for Your Business

TLTR: This article explores what agency management systems are, their benefits, and the ones applicable for your insurance agency.

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What Is an Agency Management System?

An agency management system (AMS for short) is a computer program used by insurance agencies to manage the agency’s financials, contacts, and daily tasks. They can be customized with specific agency needs in mind and allow the agency owner or manager to track leads sent out and any related follow-ups.

There are agency management systems that help aid an agency with managing the most important part: their clients, and providing tools such as payroll and billing. Many of these systems even track client financial information like policy amounts, payment schedules, and such. This data helps agency owners better understand how much work is needed for each client while at the same time making sure the agency is getting paid.

There is a range of different agency management systems available on the market today with many features. These general features depend on your specific needs as an agency owner or manager. So, finding an agency management system that will suit your agency’s needs will not be a problem.

Note: AMS is also known as SaaS technology. SaaS stands for software as a service.


Agency Management Systems vs. Customer Relationship Management Software

By definition, an agency management system is a tool that assists insurance agencies in automating their daily tasks according to the line of insurance. While CRM means customer relationship management which helps cultivate more customer interaction. 

While AMS’s and CRM’s can keep track of agency data, agency management systems are designed for agency owners, while sales representatives use CRMs.

Some agency management systems can sync with a CRM so that you can pull information from your agency management system into your CRM, but not vice versa. CRM has many functions outside of an agency management system, such as social media, email marketing, lead generation, and more. So, it’s limited in that functionality.

AMS is great if you are looking to improve your agency overall and manage information relevant to carriers and general agencies. A CRM is more focused on nurturing your relationship with your existing and potential customers.


How Helpful Are Agency Management Systems?

As an agency owner, you’ll have access to a suite of features at your fingertips, including billing and accounting reports, custom marketing efforts, and any other tools or functions you choose to add via customization. This is one-way agency management systems help increase productivity within insurance agencies.

With an AMS, agency owners can quickly see how much work they need to do for each client. For agency managers, an AMS helps them increase their productivity at work by enabling them to track leads sent out and follow-ups with ease. Managers can also monitor which types of marketing efforts are working best, helping round out their agency’s overall strategy.

In many cases, agency management systems may not require a specific collaborative effort from employees to be effective. Agency managers can benefit from the multitude of tools provided by agency management systems while working independently with little disruption on day-to-day agency activities.

Although some agency owners rely heavily on agency management systems while others do not use them at all, there are many benefits to using them.

Benefits of Agency Management Systems

When you’re running an agency, there are many aspects you need to look over, especially with client policies and commissions.  A CRM could be useful in handling all the information, but an AMS will have the exact features you need. Let’s look at the benefits you get from an AMS as an agency owner:

Track Policies

As an agency keeping track of your policies is vital. Agency management systems can track both individual and group policies. The information in these policies is extremely useful regarding the success of the business. An AMS will be able to track your policies and also be able to integrate them from various software or platforms.

This feature makes things easier for agents. Besides that, an AMS can also give you details such as the application status, renewal dates, and client information mentioned in a policy.

Process Commissions Faster

Commissions are the bread and butter of an agency. Keeping a note of all sources of commissions can be a hectic task. You might think of utilizing a CRM to record your commissions, but it isn’t the best option. With an AMS, your agency will be able to keep track of your commissions and help you grow.

You can get detailed records of various policies and be able to track commissions to the dot. AMS software will provide you with information such as commissions from carriers, how much of it the agency gets, and how it gets split with the agents. With such records, you will see where your agency stands and what you can do for the future.

With an AMS keeping track of your commissions, you can keep an eye on the agency’s finances and check if the cash flow is beneficial or not.

Serve Clients Better

Customer service in the insurance industry is an absolute must. After all, the industry is all about the client. So, it is in the best interest of an agency to cater to their customer’s needs.  When you serve them well and provide the information they require, you make them happy, and they are most likely to remain loyal. Best case scenario, they might even refer you to their friends and family.

Now how can an agency management system help? It’s more client-centric in terms of the information it manages. Initially, you need to get relevant details of your clients such as their birthday, anniversary, policy renewal notifications, and any applicable alerts. The AMS can give you periodic reminders to create a good communication channel with your customers.

Such reminders are helpful because your interaction with the client will make them feel special and involved. They will undoubtedly appreciate the effort you put in while reaching out to them and give them a greeting or policy notification.

Reporting for Leads

Leads are vital for any agency and an important source of income as well as information. Collecting the information of leads and managing them is quite repetitive and time-consuming task. Also, measuring data related to lead generation and revenue and analyzing them is a frequently happening task for agencies.

Taking these data into account and generating real-time reports to understand how the business is doing is a great plus point for any agency. However, it’s not entirely feasible to create a real-time report through human effort. An AMS can assist in creating a reporting structure that could help dictate potential future income generation steams and boost sales efforts. Agency management system can help achieve this by:

  • Keeping track and displaying all the policies sold, renewed, and claims settled by the agency
  • Monitoring the agency’s overall performance, noticing inefficiency, and optimizing them
  • Keeping a detailed record of leads based on their inquiry, location, and other parameters

Sales Automation

While selling insurance to different people, the entire process can seem very repetitive. As an agent, it can be pretty dull and time-consuming to go through the same process over and over again. With an agency management system, the software can take care of this process without any human involvement. By utilizing a sales automation procedure with an AMS, you can efficiently handle the mundane and recurring tasks of the insurance sale process.

With automation, you can fulfill the following tasks in your insurance agency:

  • Sending automated emails to prospects based on the information received
  • Relaying agents with potential leads based on their inquiry and region
  • Alerting agents with important events as defined by the agency
  • Ranking quality leads based on their activity
  • Analyzing sales performance based on reports and other relevant data

Upselling And Cross-Selling

Once you have a loyal base of customers, they can be great potential customers for any new insurance products. These clients can require any additional policies or services based on their situation. If you don’t explore this option and reach out to them, you could lose potential customers.

As an agent, it isn’t feasible for you to keep track of all the clients in your agency and find what they could benefit from. While finding relevant details about existing customers and noticing factors to help you upsell or cross sell is important, it’s also a daunting task. This is where an AMS comes in. An agency management system can assist with this process by:

  • Grouping potential customers for up-selling and cross-selling by policy type, client details, policy dates, and relevant data.
  • Setting up renewal alerts to help agents keep up with customers and their activities.
  • Automating marketing campaigns and efforts based on client’s information.

Best Agency Management Systems for Businesses

So, which insurance agency management system is the best for your agency? That depends on what you’re looking to do with your agency management system and how much time you spend learning how to use it. Some agency management systems have a short learning curve, while others require extensive training.

The answer depends on what your current agency goals are. If you’re looking to build your customer base and focus on sales, go with a CRM. However, if you want that and more, then an AMS is something you need to consider. Here are some AMS you can look into:

Regardless of what tool you use for your business, if you don’t know your business goal, no amount of cheap or expensive software will help you progress.

In Conclusion,

Technology is very integral to our personal and professional lives. And that can be seen evidently in the insurance industry. Agency management systems are essential for any insurance business as it assists in automation of daily tasks and your customer relationships. With the help of an AMS, you and your agency can focus on the larger picture and not waste valuable time with mundane daily operations. Thanks to such insurance software, agents have sufficient time to concentrate their efforts on generating more leads.

Wondering which AMS would work well for your business? Why don’t you explore our insurance directory and see what some of our top listings are working with. Add a listing today!

Frequently Asked Questions

How Much Do Agency Management Systems Cost?

According to BigIMD, agency management systems can cost $1,000 to $5,000, with monthly fees ranging from $60 to $600. These costs can either increase or decrease depending on the level of features you need as an agency. Having a good AMS is especially important for new agencies as it will pay off in the long run.

Does AMS Software Allow Agents to Work Remotely?

Yes. Agency management software prioritizes efficiency and quality. Users can access most AMS via browsers at any time. This way, agents can stay up to date on everything related to their clients and provide them with top-notch service. Such systems work very well with remote working models and can also help exceed customer expectations.


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