An Agency Management System (AMS) is the largest technology expense for an insurance agency, regardless of the particular vendor or platform.

When managed well, these systems help an agency maximize staff productivity, provide a better customer experience, and increase agency profitability. But, an old or outdated AMS is a drain on agency productivity, staff morale, and profitability.

Selecting and implementing a new system is a massive undertaking. However, there does come a time when moving to a new AMS is worth the effort. What are the signs that the agency should start looking at other options? How does an agency owner evaluate when it's time to evaluate a new system?

The following is a list of some indicators that your agency should take a look at the current options. Any of these items by themselves is not a sufficient reason to make the move; however, the more that apply to you, the more likely it is that your organization needs a new system and should begin the evaluation process. Please note: These items are not listed in any particular order. 

1. You've been using your existing system for more than 10 years.

What was state of the art 10 years ago is likely old today. Your existing system may work just fine for your agency, but what opportunities might you be missing? Newer web-base systems are easier to navigate. Training new — or younger employees — is easier when the system uses standard website navigation features.

Related: Digital destiny: What your agency needs to do right now to become more competitive


(Photo: Shutterstock)

2. You have an in-house system.

Cloud-based systems have improved significantly over the last few years. A cloud-based agency management system is inherently more secure than a system maintained by your agency. Keeping client information secure should be a top agency priority. From a disaster recovery standpoint, it also makes sense to be able to access client information from any location where you can find an Internet connection.

(Photo: Shutterstock)

3. Existing servers need to be replaced.

Needing to replace agency hardware is a great time to evaluate other options. If the agency needs to spend thousands of dollars to upgrade equipment, it's a good time to evaluate cloud-computing options.

(Photo: Shutterstock)

4. Desktop computers are 3 years old — or older.

The type of hardware you need at each desk will be different based on whether your existing system is in-house or cloud-based. The in-house system typically requires more powerful computers.

Related: Most Underutilized AMS Functions

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