CRM Software for Insurance Vs. AMS

Insurance is all about customer relationships, and insurtech does the heavy lifting to manage prospects and clients across the customer lifecycle. But what type of software is the best investment? As an agency, you have your pick of two common tools: a customer relationship management (CRM) system and an agency management system (AMS).

Both paths help agents streamline the business, from sales to customer service. Still, they’re unique. Let’s look at the perks and differentiators of CRM software for insurance and an AMS to help you decide which matches your goals.

What Is CRM Software Used for in Insurance?

An insurance CRM system is used to manage, track and organize an agency’s customer relationships and respond to their needs. Your agency may invest in a CRM to assist with lead generation, customer interaction management, and sales and marketing task automation because it keeps track of client details and helps agents manage their activities. 

It acts as a digital notebook.

Manage every interaction, from a prospect’s first call to setting reminders for follow-up emails. CRM software for insurance agencies is a digital log that coordinates all client-related tasks. 

It powers your sales pipeline.

Wrangle the front end of the business, such as capturing leads from websites and referrals and tracking deals in the funnel. CRM software can even track close ratios to show revenue sources.

It automates communication.

CRM software for insurance agencies automates marketing and communications. Use it to send targeted drip emails, renewal reminders or even text messages.

What Is an AMS?

An insurance AMS goes beyond customer-related sales tasks so insurance agencies can handle the complete customer lifecycle. Enhance your customer service, communication and overall operations with an AMS that automates key workflows and offers intuitive tools for everything from quotes to reporting.

It creates a system of record.

Streamline your agency’s back office. An AMS acts as the source of information about active policies, claims history and client records.

It manages the full policy lifecycle.

Centralize your day-to-day operations. Unlike CRM software for insurance agencies, an AMS handles heavier lifting, such as processing renewals, managing endorsements and issuing ID cards.

It handles agency accounting and compliance.

Manage insurance-specific red tape. An AMS can manage commissions, accounting and Association for Cooperative Operations Research and Development (ACORD) forms to keep your agency compliant and in good graces with insurance industry requirements.

It connects the pieces.

Keeps the business running smoothly. An AMS can serve as the operational hub, integrating with carriers for downloads and real-time ratings.

Differences Between CRM Software for Insurance Agencies and an AMS

While they’re similar in many ways, an insurance CMS and an AMS are not the same thing. So, what makes each unique? It all comes down to a few key differentiators. 

If you’re choosing between the two, it really comes down to your goals. A CRM system helps improve sales and enhances customer relationships, while an AMS helps run the entire business, including sales and relationships.

Why Should an Independent Insurance Agency Use a CRM?

Want to keep leads and clients happy? A CRM may be the right fit. Insurance agencies need CRM systems to:

Access data

CRM software for insurance unifies data, so you don’t have to juggle spreadsheets and disparate systems. Manage client data, identify sales opportunities, automate marketing for renewals and share policy information with clients from one platform.

Forecast sales

Effective forecasting with your CRM software gives insights into each prospect’s potential value. Use real-time data to optimize your sales strategy and drive bottom-line results. As sales progress, forecasts become more accurate

Track and manage sales

CRM software for insurance agencies uses customer data to identify and track prospects. Capture leads from cold calls, referrals, website visits and lists, and document "not closed" opportunities for future follow-up without clogging your pipeline. 

Visualize close ratios, deal aging and producer success

CRM dashboards show your progress during each stage of the sales process. Use the data to understand producer results and make informed decisions. Interfaces with card-based views with drag-and-drop functionality focus your workflow to advance opportunities; plus, you can isolate specific metrics to understand bottlenecks.

Provide insights to recapture, win and cross-sell

CRM software incorporates data mining that helps you monitor sales and use client data to create new opportunities. Generate prospects from your existing book of business and quote data with precise intelligence on who to target for specific products.

Why Should an Independent Insurance Agency Use an AMS?

Build on what CRM software provides with a bigger toolbox to help run the business. Insurance agencies need an AMS to:

Offer exceptional service

A client portal lets your agency keep up with client needs 24/7. This self-service space saves time and increases your value to clients, giving them a new way to access policy docs, print ID cards and make change requests during and after hours without an agent. Build your service reputation and reduce the volume of support calls.

Increase retention

Retention features within your AMS maximize renewals to grow your agency. EZLynx retention software enhances the client-agency relationship and maximizes retention by allowing agents to reach out to 100% of renewals through automation.

Tools such as automated renewal quoting can save insurance agents up to 15 minutes per renewal. Use predictive analytics to identify clients who are most at risk of leaving and generate summaries of premium pricing changes so agents can follow up personally.

Improve client communication

AMS automation elevates client communication and builds those relationships. Send personal messages, such as birthday wishes, to connect with clients; plus, activate targeted emails and texts to stay top of mind and nurture relationships.

Manage agency business in one place.

An AMS acts as a single source of truth across all operations and policies. Manage applications, quotes and proposals, and complete ACORD forms and certificates. Your software is the system of record, offering errors and omissions protection by keeping digital copies of all policies, notes and changes and handling back-office functions, such as processing commissions and tracking producer payouts.

Improve efficiency by automating processes.

Implementing automation simplifies tasks at every level of operations, ensuring your team always knows the next steps. Redirect agents toward higher-value activities by setting up intelligent workflows for redundant tasks and reach more customers with preset email sends, personalized messages, prospect outreach and renewal reminders. 

Provide insights for data-driven decision-making.

An AMS provides a holistic view of your agency's performance and potential, so you can track your progress and make informed decisions. Data reports reveal operational bottlenecks and training opportunities, and you can even compare your performance to that of other agencies by analyzing real-time sales and service performance scoreboards.

Why Is Interoperability Important?

When agents are forced to bounce between CRM software for insurance and an AMS that don’t “talk” to each other, it’s a recipe for disorganization and:

• Fragmented data

• Manual data reentry

• Missed opportunities 

Don’t waste time and resources or risk your agency’s growth. Combine the best of both CRM and AMS with an all-in-one solution. 

All-in-one software brings it all together.

Stand-alone CRMs may store customer data to help you find prospects and close deals, but an all-in-one AMS kicks it up a notch. Get access to a full suite of tools to manage the full customer lifecycle and enhance: 

• Efficiency for ratings and submissions

• Reporting, from pipeline activity to accounting

• Communication, from AI-enabled touchpoints to activity tracking

• Client service, with real-time policy updates and 24/7 support

• Retention, through automated workflows and quoting

Make Your Management System Your Most Productive Employee

Basic CRM software for insurance agencies may drive sales, but an all-in-one AMS manages customer relationships at a higher level. Get a hand running your agency for growth with EZLynx as your comprehensive solution.

EZLynx is the industry’s fastest-growing AMS and has everything you need to keep growing. The software is easy to use, so your team can accelerate agency growth, prioritize retention and streamline essential workflows. Curious how the software could help? Get in touch to schedule your personalized demo.