Insurance technology has offered tremendous opportunities to the industry. Digital solutions for different stages of the insurance lifecycle – from underwriting to quoting to purchasing – have accumulated to the point where it can seem overwhelming.
One immediate solution that the industry has adopted is agency management systems or AMS. The name itself reiterates that an agency management system is a great way to, well, manage an agency – but there is one huge gap: connecting with clients after a sale.
The Purpose of Agency Management Systems
Insurance agencies primarily use AMS for organizing their books of business and for administrative and operations-related tasks. However, agency management systems are capable of handling front-end tasks such as email marketing and back-end tasks like commission processing or workflow automation. It is easy to see why most agencies believe this software is crucial to their organization – ninety percent of agencies, to be exact.
Agency management systems are industry-specific and as dynamic as the businesses they aid. An AMS can even take over for a CRM or customer relationship management software. Companies who consolidate their practice through fewer and better insurtech solutions will continue to be the most successful. Agency management systems can provide singular solutions such as custom reporting or contact-based organization as well as one complete solution.
It would seem as though this system has everything covered, right? Not quite.
Most agency management systems provide value to the businesses but hardly anything to the end-user. Many insurance agencies are satisfied with only offering customer support through their software. While quality customer support is undoubtedly vital in today’s world, it is not enough to keep clients happy. According to Salesforce, “fifty-seven percent of customers have stopped buying from a company because a competitor provided a better experience.” Technology has improved the ability to learn and be flexible, which places responsibility in the client’s hands.
Clients are looking for a personalized experience that keeps them informed and connected at all times. To truly differentiate itself amongst the clutter, a business must provide incredible service from start to finish and act in the client’s best interest. Agency management systems provide little value when closing the last mile between agents and their clients. There is nowhere for the client to share policies, ask questions, or collaborate with people like their beneficiaries.
Agents That Give More Get More
Nowadays, it’s all about value. Providing a decent insurance policy is no longer enough. Clients will not settle for anything less than an agent who cares about them and is willing to act in their best interest.
Agents that prioritize their clients provide a service and connection that makes a difference. Clients who feel comfortable with their agents are more likely to open up about their finances and look for guidance. Clients who regularly communicate with their agents are seventy-four percent more likely to recommend their agents to others. Not only that but getting to know clients and bonding with their beneficiaries can lead to loyal families that lean on the agent to manage their generational wealth.
Businesses that use agency management systems need a complementary product to add significant value. One excellent option is the agent platform Link by LegacyShield, where agents and clients can safely share information and collaborate within the platform. Agents receive advanced insights and prospecting tools from working with their clients’ entire network. To learn more about how insurtech can help agents compete, check out this blog: “Increased Competition in Insurtech.”