Choosing an Insurance Agency Management System Avoid These Pitfalls. by pexels-nataliya-vaitkevich-7173047

Choosing the right insurance agency management system (AMS) is critical for insurance agencies to stay competitive and efficient in today’s market. But the process can be daunting, and many agencies struggle to find the right system for their agency. Don’t make the same mistake – learn how to avoid these common pitfalls.

Purchasing the System Without Evaluating Your Business Needs

While all insurance agency management systems share the same purpose, to help streamline business processes, they still have differences. AMS can differ in terms of cost and capabilities. You must evaluate your business needs to be able to find software with the functionalities that meet your requirements.

Identifying the goals and pains in your processes can be a good starting point. For example, you want to improve client relations, but your agents cannot answer any of the customer’s questions immediately because they cannot easily access clients’ records. In this case, a cloud-based AMS is a good option because it gives users access anytime and anywhere.

Here are the other common issues faced by insurance agencies:

  • Cost-effective marketing – Marketing can be challenging when the budget is tight and the competition is tough. The right agency management system can combat this problem by providing agencies with specific functionalities, like marketing automation, for easier and more seamless campaign management.
  • Errors and omissions – If you run your agency using manual procedures and paper forms, there is the risk of losing documents. A good AMS will addresses this issue by putting your data in a centralized location. As long as the AMS has strong security in place, you can set the fear of errors and commissions at ease.
  • Client’s expectations – Making customers happy is important but it can be a challenge, especially with increasing expectations. An agency management system can help you meet your Client’s expectations by providing you with features, like a client portal, that make doing transactions easier.
  • Technological advances – Every now and then, new methods and mechanisms appear in the insurance industry. It is a must to learn and adopt these developments to stay in the competition.

When it comes to functionalities, do not just focus on the necessary. Also, think about what you want in the system. Most systems have features often overlooked but could make your day even more efficient and streamlined.

Not Vetting Vendors

Choosing from many insurance agency management systems out there can get overwhelming. It can be tempting to skip the vetting part, but do not. You do not want to partner with a vendor you don’t know anything about.

Get to know a vendor by asking the right questions. Here are a few important things to ask about:

  • Data ownership – Every business would want 100% data ownership. While the majority of agency management systems do give their users complete data ownership, some may have a different policy. It is vital to ask and be sure to avoid problems in the long run.
  • Features – AMS features are not hidden. You can typically find them on the vendor’s website. But it won’t hurt to ask the vendor about the functionalities that could benefit your business.
  • Data Security – Data is vulnerable – now more than ever. Ask your vendor what security practices are in place.
  • Support – You would want a vendor who will be with you every step of the way. So do not forget to ask about what type of support you can expect from them.

Not Taking Input from Every Employee

Some agencies make the mistake of seeking approval only from C-level executives. In the long run, your employees are the end-users. Not taking their input can lead to a lack of interest on their end and even operational complications.

An executive’s approval is essential, but employees also matter. Therefore, do not forget to consult those who will use the system during the selection and implementation process.

Not Training the End-users

If you want to reap all the benefits that AMS promises, your end users should undergo training to understand the system and know how to make the most out of it. Training is important no matter how user-friendly a software is advertised.

Without training, employees will likely find workarounds to use the software. It could lead to mistakes that could be expensive to fix. But with training, they will be able to use all the features and time-saving shortcuts.

Not Making Implementation Plans

Adopting new software can be costly and time-consuming. Without an implementation plan, there’s a high chance you won’t get the desired result. So make sure to create a plan with your department leaders.

When making plans, include each department’s implementation goals and milestones, individual goals, an estimated timeline for getting the system up and running, and training sessions.

During the implementation stage, remember that employees have different ways of reacting and adapting to new technologies. Some may be enthusiastic to try new things, while others may be easily frustrated. But they will surely succeed with the proper training and support. So, give them space and grace.


Finding the right insurance agency management system does not have to be difficult. Take note of the common pitfalls and avoid them when you start the quest for the agency management system that suits your business needs. Interested in learning more about the ways that JenesisNow can help your agency thrive? Request a demo, today.