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How to Choosean Agency Management System

CONTENTSIntroduction. 39 Key Things to Consider. 41. Your Agency. 52. Training & Service . 63. Features / Workflow Requirements . 74. Security . 85. Scalability . 96. Affordability . 107. Conversion of Data. 118. Software / Hardware Requirements . 139. Evaluation of the Software Provider. 142

How to Choose anAgency Management SystemChanging your current agency management system is achallenging endeavor—figuring out which one to choose, evenmore so.Depending on which system you choose, your agency managementsystem will have the functionality to be so much more than a simpledatabase program that houses the names and contact information ofyour clients. It will empower you to make critical business decisionsby providing visibility into all facets of your agency. It will also enhancecustomer service, streamline workflow and increase employeeproductivity in addition to providing E&O protection andmuch more.There are currently more than 70 AgencyManagement Systems on the market, all with varyinglevels of functionality, support and pricing, and evenin a best case scenario converting from one systemto another is an investment in the future that takestime and resources.For these reasons and more, taking the time upfront to determine which system and vendor makesthe most sense for your agency is very important.3

9 Key Things to Consider4

1.Your AgencyAs you begin the process of deciding whether topurchase a new Agency Management System, itis important to conduct an in-depth analysis ofyour agency’s requirements and needs. Considerthe challenges you have overcome in the past andwhat challenges you might face in the future.When shopping for an Agency ManagementSystem for your agency, there are severalcrucial factors to consider:What type of agency are you?What are your agency goals and what direction is your agency is moving?What are your current and future automation needs?What will the learning curve be for both new-hire and tenured associates?What will be the total ownership cost over time?What results are you looking for in an Agency Management System?5

2.Training & ServiceThere are many facets of training to consider when selecting a new Agency Management System. Whenevaluating a new system, focus on the training offered to new and existing clients.Here are some things to consider when evaluating the available training packages.YESNOWill you require training on the system both before and after launch?Will you need assistance creating best-practices for usage continuity?Would the availability of technical support and system administration be helpful to your agency?Does the training provided apply to how certain features are applicable to the insurance industry?What level of training does the Agency Management System company provide?Are additional training initiatives available, and if so, what is the cost?What level of knowledge do your employees have of computer concepts & terminology?Would your agency benefit from a robust training package or do you feel confident thatyour employees will succeed in learning on their own utilizing a technical manual?Do your employees learn better in a physical or digital learning environment, or would both be beneficial?What are the primary ways in which training is delivered? Onsite, web, phone?What type of user groups exist?6

3.Features/ Workflow RequirementsBecause each system has its own strengths and weaknesses, you should also consider the features that aremost important to you in your new system. What do you want your system to be able to accomplish for you?Are all of the features you need included in the package, or are they sold as an add-on?Here are some things to consider.Do you want Real-Time connections to your carriers?Do you want an accounting module that is integrated with your management system?Do you want to be able to sync your Outlook folder with your management system?Do you want to be able to operate in a paperless environment?Do you have remote producers that will need access to your system?Do you want a system you can access “on the go” on smart phones and tablets?Do you want a system that manages documents efficiently?Do you want a system that will help you effectively manage prospective clients?Would you benefit from a system that enables you to Cross-Market and Up-Sell Successfully?Would you like to easily access client Information?7YESNO

4.SecurityInadequate software design and engineering are the main causes of most security vulnerabilities in deployedsystems today. With the increased need to protect your computers from foreign software and software fromforeign hosts running it, it is important to focus on the security capabilities when purchasing a new AgencyManagement Software.Here are some things to consider.YESNODoes the Agency Management System work well with most anti-virus programs on the market?Does the Agency Management System experience overly high system outages (downtime)?Is your agency data backed up in case of a future loss?What type of security is provided to you?What protection is provided contractually?Where and for how long is inactive data held, and is it protected as well?What security measures does the Agency Management System provider take when hiring Technical Supportanalysts?8

5.ScalabilityIn electronics, scalability is the ability for a software to handle a growing amount of work in a capablemanner and its ability to be enlarged to accommodate that growth. You want to ensure that the AgencyManagement Software that you select has the ability to grow along with your business.Here are some things to consider.Will the speed of the Agency Management System be compromisedwhen additional users are added?Is the data storage space provided for client data limited to a specific amount?Does the system provide the ability for new features as the needs of your business grows?Do you have the ability to add additional hardware to the systemwithout compromising efficiency?Can the Agency Management System have the ability to be moved from a smaller to a largeroperating system and take advantage of the larger operating system in terms of performance?9YES NO

6.AffordabilityFrom start-up costs to additional licensing costs, there are many items you should factor in when reviewingthe overall cost of your new system.What are the start-up costs for the new system?Will there be a charge for data migration and how long will the process take?Is there a monthly support cost tied to the system?What hardware costs are involved in getting the system up and running?Is there an annual license fee?Does the software have a cost per user, and if so, do you pay per user or can you bundle?Will there be a charge for carrier downloads?What is the long term pricing history for clients over the last five years?10

7.Conversion of DataHow much work will the agency be expected to do during the conversion of data?Who does the data mapping—the agency or the provider?How many conversions of systems X have they done?How much data was converted?What was not converted?What type of support will be provided during the conversion process?11

8.Software/Hardware RequirementsA desktop software application is characterized by the selling of licenses for end-users. Once thelicenses are sold, the vendor-customer relationship is over. Desktop software applications can onlyoperate on the machines they are installed on. Licenses to operate the software can be purchasedindividually or as a group, limiting the number of individuals able to operate the software. In addition,customers are responsible for downloading necessary upgrades and when a new software version isreleased, additional money must be spent for an upgrade.In comparison, Software as a Service(SaaS) delivers applications to usersfrom a central location. A providerhosts the application on a server andallows users to access the applicationacross a network. This means thatSaaS allows a user to take the dataeverywhere. SaaS virtually runsany application on a Web browsersupported computer. At the businesslevel, SaaS makes the vendor acustomer’s partner who providescomplete business solutions.12

8.Software/Hardware RequirementsMany individual tend to believe that the level of software and its cost should be their main concern whenpurchasing an Agency Management System. It is a common misconception that the hardware is merely theplatform within that runs the application. This misunderstanding could not be further from the truth.Individuals purchasing a new Agency Management System should choose hardware that is technologicallyadvanced, and not dedicate their system choice to the requirements of the software. Electronic imageprocessing is beginning to take the lead in Agency Management Systems and computer systems that supporta graphics environment is pivotal. If an agency is purchasing a computer system that cannot adequatelyhandle graphics, they may face processing difficulties in the next few years.Here are some things to consider.YESNODo you foresee increasing the number of employees at your agency, requiring additionalsoftware licenses?Do the computer systems you are currently using support a graphics environment?What is the current status and age of the computer hardware in your office?Will the business conducted for your agency be completed in-house or do you have remote employees?What new hardware will you need to purchase to utilize all the features offered with a new AgencyManagement System?What new software will you need to purchase to utilize all of the features offered with a new AgencyManagement System?13

9.Evaluation of Software ProviderHow long have they been around?What is the ownership structure (owner operated, venture/private equity)?Where are most of the clients?References for clients greater than 5 years and clients less than 6 months?References for clients who converted from the same system?14

Reasons You Might Need a New SystemThere are more than 70 Agency Management Systems available throughout the country for an agency tochoose from. Agencies vary in size and can range from one CSR/ one producer management system, to acomplex multi-user system that consists of 250 terminals. So how do you know if your agency needs toadd or change your Agency Management System?Ask yourself, the following questions:Would I benefit from improved service from my provider?Would a better system or procedural performance benefit my agency?Would the ability to store more information about my clients and their policies be helpful?Would providing stronger security controls benefit my clients?Do we currently have continuity of daily operations?How would the business benefit from an overall increase in client satisfaction?How much stronger would my agency be if I reduced operating costs?Once you’ve decided if a new Agency Management System is right for you, find outwhat technology options best fit your needs. Reading publications such as this oneand the Anderson Agency Report, which focuses on the operation and technologicalimprovements in the insurance agency business, is a great start in the right direction!15YESNO