Insurance Agency Management System – What, Why, and How?

Insurance Agency

We all understand that manual paperwork has been an inseparable part of an insurance agency. A large number of documents and product complexities make things lethargic and dull for both agencies and customers. However, there’s a simple way to get rid of all those tedious, day-to-day tasks with smart automation and work management tools.

This is where we need to explore more about insurance agency management systems that help agencies manage repetitive tasks with ease. If you’re an agent looking to have an AI-driven, smart tool to automate your communication and marketing, consider using PathwayPort, a perfect insurance marketing solution for your business. In this post, I will explain what an insurance agency management system is, why you need one, and how it makes life easier.

What is an insurance agency management system?

An insurance agency management system (AMS) is a SaaS platform that helps you optimize your agency’s business processes and efficiently run your business. It automates multiple processes from handling customer claims and improving agents’ productivity to monitoring results. The paper-based, manual way of doing things doesn’t work if your goal is to make your agency’s operations fast and efficient. An increasing number of agencies are implementing AMS to handle their daily routine tasks and managing their book of business.

It is inevitable that all businesses in developed parts of the world are needed to transfer from an offline to an online way of doing business. Besides efficiency, ecology is playing a big role in the current world. People are against plastic bags, use of paper, and any type of not-sustainable practice, which leads businesses to automations.

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Insurance agencies are affected as well. Instead of having a bunch of papers and driving for miles to discuss with agents about your options, by using an automated insurance agency management system you save your time, lower carbon footprint, and save trees by not using a paper.

Why do you need to implement an agency management system?

If we look at the past couple of decades, the insurance industry wasn’t proactive in adopting new technologies. According to Statista, 63.3% of young insurance agents believed that the industry is too slow to embrace innovation. However, in recent years, the industry has witnessed some dramatic changes. Insurance agencies are now willing to implement automation systems to deal with the growing challenges. Here is why you must consider using a robust management system to remove operational friction:

1. Enhance agents’ productivity

If we look at the process agents use to sell policies or maintain relationships with customers, we will come across multiple repetitive, cumbersome tasks which negatively impact the productivity of an insurance agent. A good agency management system can perform those repetitive tasks with great accuracy and speed, allowing agents to spend more time on tasks that matter the most. WorkMarket 2020 Insight Report revealed that 42% of business leaders agree that workflow automation speeds up the completion of repetitive tasks.

2. Automated up-sell and cross-sell processes

Up-selling and cross-selling is an old marketing practice that industries have been using for years. From insurance to finance and retail shops, almost every industry benefits from up-selling and cross-selling. But these practices demand a significant amount of time if you don’t have an agency management system in place. If you don’t want to lose customers and improve your up-selling results, use an automation system.

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Optimized systems can suggest to an agent what can be upsold and to whom. This is done simply by observing and analyzing data while you are doing some other practices. This is the future of innovative insurance business.

3. Analytics and reporting

It’s not possible to measure your performance and make data-driven decisions unless you have an analytics and reporting tool. Most of the agency management systems come with in-built analytics and reporting capabilities. So, you don’t need to have a dedicated system just to track your results or prepare reports. The management system will automatically collect and analyze data to generate valuable reports. For example, you can analyze quarterly revenue, lead generation data, and sales performance.

How to choose the right management system for your insurance agency

Not all agency management systems are equal. Each one of them will have its own features, pros and cons. Before you decide to implement a system, make sure to understand your business processes and goals. Choose a system that fits your business model and definition of success. The following are some of the key features of insurance agency management systems:

  • Lead and customer management
  • Workflow automation
  • Data management and storage
  • Real-time analytics
  • Automated report generation
  • Up-selling and cross-selling capabilities
  • Cloud-based solutions

Bottom line

If you’re interested in improving the efficiency of your insurance agency operations, learn more about automated management systems and how they can help you remove bottlenecks and achieve business goals.

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