By CommenceCRM

Insurance CRM Vs. Agency Management System

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Insurance CRM and insurance agency management software are tools that help insurance agents and agencies work more efficiently. These insurance agency software both have built-in features for agencies to expand their businesses and reach their goals. Though insurance CRM and agency management systems offer similar benefits, learning about their differences can help agencies choose a better system.

So what’s the insurance difference between CRM and agency management? The main difference between the two is that insurance CRM prioritizes relationships between client and agent, while insurance agency management systems help agents organize and manage their day-to-day activities.  

What Is Insurance CRM?

Customer relationship management (CRM) is a strategy that businesses can implement to improve their profitability. The strategy works by analyzing critical information about clients so that employees can utilize the information to their advantage. Many businesses use a CRM tool or software so that they can use this kind of strategy.

Using CRM software creates a more personalized interaction between buyer and seller. It allows the sellers to track their customers’ behavior and preferences by looking at their different interactions. Through this kind of strategy, businesses can provide better excellent customer service to help existing customers stay loyal while also attracting potential customers. What was once a sales and marketing tool is now a platform that helps employees stay on track. 

To cater to the insurance industry, CRM companies have created insurance CRM software. This CRM solution provides tools for insurance agents to attract potential policyholders and generate sales. The software can help insurance agents work more efficiently since it has special features that are helpful for their line of work. 

Since almost all insurance agencies rely on new clients to generate commission, they should always guarantee the best service for customers. A good example of how insurance CRM software helps agencies is that it can help segment their audience more effectively. By learning about different market segments and their behavior, insurance agents can upsell certain insurance policies to those potential clients.      

What Is an Agency Management System?

An insurance agency management system (AMS) is used to help insurance agents perform day-to-day functions. It focuses more on the needs of the employees in the business. AMS is designed for member management so that users have an easier way to easily track the needs of running an association.

When a business has AMS software, employees have a platform where they can access all the information about existing customers. Some of these customer data include member details, purchase history, and subscription details. It can also remind employees about their tasks for the day through plugging into other systems and processes. 

Common features of AMS software include website management and purchase fulfillment. If the user integrates AMS with the backend of their website, then customers can accomplish functions online. And when customers have successfully purchased from a website, the platform immediately stores details in the system and manages the dispatch of the products.  

So when it comes to insurance agencies, AMS is a platform that provides functionality for insurance-related processes. For example, using AMS software can be helpful when agents have to collect payments from policyholders. The software allows agents to send automated emails to current clients when payments are almost due and to notify clients about whether their policy has lapsed. 

Comparing Features of Insurance CRM and AMS

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To help understand what tool is better for your work, let’s take a better look at the features of  insurance CRM and AMS. Though both tools collect and store customer data, how an insurance agent uses this data is critical in attracting potential clients and generating sales. 

Comparing the features of CRM and AMS and how it helps them work more effectively ensures that you know what to expect from the software: 

1. Productivity Tools

CRM provides tools that can help insurance agents efficiently do their work while prioritizing customer satisfaction One of the most significant tools CRM software provides is marketing automation. This reduces the amount of time and effort insurance agencies spend on sending individual messages to their clients. Most CRM software has available templates that insurance agents can use depending on their client, so they don’t have to write an entire email from scratch. On the other hand, the productivity tools that AMS provides address the day-to-day activities of insurance agents. It handles all the data regarding existing customers so that employees have an easier time accomplishing their tasks. The software focuses on productivity tools used to run the organization rather than customer satisfaction. 

2. Data Management

Both insurance management software store important client records. However, there’s still a difference in what kind of customer data the system prioritizes. AMS software stores basic data about clients and also provides data about what’s happening inside the agency. It handles data regarding existing customers.  

CRM stores data about both current and potential customers. It stores this kind of data so that insurance agents already have an idea about their clients’ preferences even before they meet them. This comprehensive and large amount of client records allows employees to strengthen their relationships with their clients. For example, CRM software stores data about previous client interactions which offer them access to the full history of each prospect.

3. Lead Generation

AMS is a great tool to help identify leads. This software segments the market and identifies certain trends. For example, insurance agencies can look at what kind of insurance policies are the best fit for the people who live in a certain area. They can also look at whether their existing clients have a high potential of referring them to other potential clients. 

While AMS is already an excellent tool to help insurance agents generate leads, CRM software provides a more complete picture of their clients. It can identify whether insurance agents are actually addressing their client’s needs. With stronger analytics, insurance CRM software can generate leads with stronger precision compared to AMS.  

4. Commissions Tracking

CRM and AMS software both assure insurance agents that they receive correct and complete commissions. Though both platforms are capable of tracking commissions for insurance agents, the feature is only present in some software. For independent agents, they may have to do some research to know whether the insurance agency software provides commissions processing. 

There is also customizable CRM or AMS software available on the market which insurance agents can customize to help record and track any commissions they receive. However, setting up this feature can be very time-consuming, especially if the software is generic and not specifically made for the insurance industry. 

5. Reporting and Analytics

An AMS software analyzes data about existing customers. This means that whenever the software reports data, it’s usually just about the behavior of existing policyholders. On the other hand, CRM manages data about prospects and customers, but the system analyzes these data to predict interactions with future clients. For example, CRM software can provide reports on how likely a customer will continue to pay for a product. 

6. Industry-Specific Benefits

AMS can perform insurance industry benefits such as policy management and commission tracking. It can provide features that insurance agents specifically use such as syncing client policies, tracking reviews, and setting reminders. The software can also offer benefits such as sending out marketing emails, but it’s limited in performing these functions. 

To receive the benefits of both managing insurance-specific work while generating more sales, CRM software is your answer. The software offers features that are very helpful for insurance agents such as automated emails, marketing campaign management, and lead and opportunity management. Most insurance agencies might want to overlook these kinds of features, but it’s one of the most helpful solutions to a more successful business.

For an easier look at the differences between insurance CRM and AMS features, you may refer to the table below: 

Features Insurance CRM  Agent Management System
Productivity Tools Tools prioritize providing customer satisfaction Tools address the day-to-day activities of insurance agents
Data Management Stores comprehensive data about current and potential clients Stores basic data about existing customers and data about what’s happening inside the agency
Lead Generation Provides a more complete picture of their clients’ needs Segments the market and identifies certain trends
Commissions Tracking Can record and track commissions Can record and track commissions
Reporting and Analytics Analyzes these data to predict interactions with future clients Analyzes data about existing policyholders
Industry-Specific Benefits Limited in performing insurance-specific functions Helps manage insurance-specific work while generating more sales

Should I Choose Insurance CRM or AMS?

It can be a difficult decision to choose between insurance CRM and AMS since they both provide similar benefits. Both software tools have their strengths and weaknesses, looking at the goals of the company can help you assess which software is better for its growth. 

One of the best ways to assess what CRM and AMS can offer your business is to look at whether you only want an insurance software to assist you in day-to-day tasks or if you want an insurance software that goes beyond that function and also helps manage customer relationships. Aside from tracking individuals inside the organization, CRM software is also helpful in tracking the behavior of existing and potential clients. 

Though it still depends on the user themselves, a CRM system is more dedicated to catering to a client’s needs than an insurance agency management solution. With CRM, an insurance business can overcome challenges regarding attracting potential clients if needed, even though it isn’t the agency’s main concern in the moment.  

Why Insurance Agencies Need CRM Software

The continuous competition in the insurance sector makes insurance CRM more of a necessity. As an insurance broker or agent, here are some benefits you receive from using CRM software:

  • Enhances customer experience: If there’s one thing that CRM solutions promise, it’s enhancing customer experience. There are different ways to enhance customer experience such as being present whenever your customers need you or provide a better user interface. However, CRM software utilizes stored data to provide insurance agencies a better way to enhance customer experience.
  • Cloud-based collaboration: Thanks to technology, a lot of platforms are now stored in the cloud, including insurance CRM. Cloud-based collaboration is one of the most effective methods to foster collaboration among team members because people from different locations can work on any device. Additionally, having cloud-based platforms is also easier for an independent agency that doesn’t have an in-house IT team to solve IT problems. Since cloud-based platforms require less technical skills, employees who have limited IT experience can try solving the problem first.
  • Sales generation: For insurance agents, generating more sales ensures company growth. Through learning about their clients’ behavior and preferences, they can find products that best cater to their needs. After generating a sale, insurance CRM records what kind of strategies an agent did well so that they can use this strategy for the next sale. 
  • Increases efficiency and mobility: Since CRM is an all-in-one platform that helps insurance agents manage workflow and attend to customer needs, the software increases efficiency and mobility. Agents don’t need to go through several documents and paperwork to find important information about clients anymore. Rather, they can just look up a client record in seconds using an easy-to-use platform.
  • Saves money: Insurance agencies can also save money when they use CRM software. For example, CRM platforms generate analytics that can help identify what kind of marketing materials best fit the customer’s interests. Through this, employees can create materials that reach their target audience instead of spending time and money on inefficient campaigns. 

Commence CRM’s Next-Generation CRM

Insurance agents and agencies can greatly benefit from the tools and features of insurance CRM solutions. At Commence CRM, we help insurance agents and agencies enhance sales through our next-generation CRM for insurance agencies. Some of the features our software includes are auto lead qualification, custom reporting, and document management. Our software is easy and simple to use and doesn’t come with a hefty price tag. 

Commence CRM’s next-generation CRM ensures that insurance agencies better understand their customers so that they can provide excellent services. Our team is here to help you understand how CRM solutions can be used to help your business grow. To learn more about Commence CRM and our products, you may contact us today