Five steps to choose an agency management system How to pick the right AMS for your agency By Steve Anderson, CIC
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he purchase of a new agency management system is an expensive and challenging undertaking. The expertise of professional, independent insurance agencies is selling insurance; computer concepts and terminology can be intimidating to agency owners, managers and users alike. In addition, despite industry consolidation over the years, agents still face a wide range of choices (more than they realize) in the technology marketplace. The purpose of this article is to provide you with the proven process I use when working with agencies that will help any size agency pick the best agency management system for your organization.
Step No. 1—Strategy: Why do you want a system?
First and foremost, the purchase of an agency management system is not about computers. It’s about the agency— the way it operates now—the way it will operate next year and in the years ahead. A detailed agency system review is an opportunity for an agency to examine its business closely and make strategic decisions about the kind of agency it wants to become. Strategy questions you should ask yourself and your staff include: • What is your strategic direction? • Is the agency growing or stable? • Will you expand into new markets and/or geographic territories?
• Do you expect a change in ownership or management? These are all changes that will affect the technology needs of the agency and influence the selection of an agency management system. Rapid growth may tax the current system. New offices will either need their own hardware and software or a cloud-based system will allow easy remote access to client information. An agency must consider all these things as it makes decisions about how to manage its technology infrastructure. For agencies on an existing system there are several reasons you might need to make a change to a new system: Improved service. A new system
may enable the agency to provide better service to its customers. Better performance. A system that seemed incredibly fast when it was new may feel frustratingly slow a few years later when a customer service representative has a client on the phone. More information. A modern agency requires a lot of detailed information, and the current system may not be able to track all the information the agency needs. Stronger controls. Securing clients’ information is not only a good business practice—state and federal legislation require it. The current system may not have security controls strong enough to meet both legal requirements and clients’ expectations.
Professional Insurance Agents/Spring 2013
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