How to Select the Best Insurance Agency Management System?

By Insurance CIO Outlook | Tuesday, December 29, 2020

A fact-based approach while selecting insurance agency management systems can help insurance firms address dilemmas successfully.

FREMONT, CA: An agency management system plays a vital role in today’s modernized business ecosystem. The complicated array of processes that are now at the core of every insurance firm can be streamlined and handled with significant ease when the right agency management solution is used. Selecting a single solution from the host of options available in the market today can present a challenging situation. Therefore, the insurance industry has to consider critical factors before deciding on a solution. Today, there are two broad categories of agency management solutions available for insurance companies- contact-based and policy-based. Both categories have a unique set of functionalities that may or may not be relevant enough for an insurance provider. Here are a few insights that can help insurance companies select between the two categories of agency management solutions. 

Policy-Based Systems

Insurance policies offered by an insurance agency become the exclusive points of reference when a policy-based management system is used. Every bit of information in a company, including customer identities, is linked to the policies that an insurance firm provides. Put simply, the management systems bank on tracking policies to optimize business models. Most of the traditional insurance management systems, including CRM solutions, are centered on policies. Insurance companies using these systems can monitor policies and perform better. 

Contact-Based Systems 

Contact-Based agency management, centering on contacts, places the core focus on clients. Every bit of data is linked to individual contacts and tracked concerning individuals. A contract-based system is considered to be simpler than a policy-based one. Today, every service provider aspires to be customer-centric. With contact-based systems, it becomes convenient for insurance companies to organize business in terms of customer sentiments and expectations. As a result, data is streamlined, marketing prospects get better, and workflows automation opportunities improve.   

Thus, it can be said that contact-based agency management systems have a slight edge over policy-based ones. However, the ultimate decision regarding the systems should stem from an insurance firm’s priority and plans for expansion.

See Also: Top Insurance Technology Solution Companies

Weekly Brief

Read Also