Insurance companies have always used computers since the earliest units were put on the market. Nowadays, computer systems have become more personal, automated, and have made it easier to manage companies and agencies. It’s not a stretch to say that insurance management and other systems are required for an agency or brokerage to function in this day and age.
Customer Relations as a Sub-system
Strictly speaking, integrated insurance management already requires a customer relations management (CRM) system. Due to the nature of the service industry, however, CRM cannot be a stand-alone system since it’s a sub-system around which all sales functions revolve. This also means that a CRM strategy already exists in insurance management.
The core of insurance sales is to have a funnel of prospects and a pool of existing clients. It’s important to keep these clients on the radar. Due to their past sales history, they can be sold more insurance coverage or different plans in the coming years. An individual’s insurance requirements change as they grow older or as their career or business progresses after all.
Client and prospect data for insurance management requires a central database, and agents need to input their possible clients. If the client already exists in the database, however, they may or may not be allowed to pursue them for sales depending on the policy. Another agent may have already contacted that prospect or they’re already a client. These scenarios happen and it’s the job of the manager to make sure that there are no conflicts in handling existing clients.
Keeping in touch with prospects and clients help the agency with possible sales. Many policyholders will switch insurers if they’re treated better than their current insurance company. It’s easier to keep existing clients, but if they leave, they leave for life.
An insurance management information system is a conglomeration of functions that help run an insurance agency, brokerage, or a company. One sub-system which can lead to the company success is in customer relations. Keeping an eye on plan holders is a great way to have repeat businesses.