For independent insurance agencies, selecting the right technology is one of the most important decisions they will face. Choosing the right partner to streamline operations and drive growth can significantly impact the success of the business. However, many agency owners struggle with the search and decision-making process.
The key to finding the right solutions starts with making sure the right people are asking the right questions. Here are three steps insurance agencies should take when selecting technology to ensure they make the right choice.
Assess Your Needs
The first step in selecting technology is to assess the needs of the agency. Who are your clients, and what services are you offering? Are you focusing on personal or commercial lines insurance? The technology required for each can vary significantly. The agency’s specific niche and other verticals it serves will also influence the tech needed.
It’s essential to ensure that the chosen technology can integrate well with your agency's focus areas. Leadership should also prioritize the goals and objectives for integrating the new technology. What specific pain points are you trying to solve? Will the technology fit well with your agency’s culture and operational environment? These questions will help define the type of technology your agency should pursue.
Vet Your Options
After assessing your needs, it’s time to start exploring potential technology vendors. Most vendors provide case studies, references, and success stories that can be helpful in evaluating their solutions. However, a great starting point is often to turn to your peer group within the industry. Independent agency associations can be a valuable resource, helping you cut through the overwhelming number of choices in the marketplace. Many associations offer vetted solution providers they either recommend or partner with. These providers often have experience addressing the operational challenges faced by agencies in similar situations.
Agencies can also hire consultants to assist in the vendor selection process. Consultants often have a list of qualified vendors that can streamline the search and integration process. However, it's important to verify that the consultant has experience in solving the specific problems your agency is dealing with. While consultants can be helpful, they add to the overall cost, so it’s essential to weigh the benefits carefully.
Keep also an eye on emerging technology solutions. New companies may offer fresh, innovative approaches that legacy vendors have yet to address. These solutions often come with more advanced capabilities, improving workflow and enhancing the overall customer experience.
Consult and Find Value
The most critical aspect of selecting the right technology is ensuring that the staff who will be using it are involved in the decision-making process. Agency owners may not fully understand the pain points experienced by employees who interact with the systems daily. If those who experience the pain aren’t part of the decision-making process, valuable time and resources could be wasted.
Staff members can provide key insights and help ask the right questions when evaluating potential vendors. High-level questions to ask any vendor should include:
- What metrics of value can you share from other agencies using your system?
- What is the typical return on investment (ROI) for agencies that have adopted your product?
- What does the implementation process look like for an agency of our size and type?
- Can you provide a trial or pilot period to test your platform?
- Does your platform integrate with the existing systems we plan to continue using?
Although there is no guaranteed method for selecting the ideal technology partner, asking these key questions can help you identify the right vendor to improve efficiency and support growth. By involving the right people and asking the right questions, you’ll be well on your way to making an informed decision for your agency.
When you join AAI, you have a complete one-stop solution to building your independent insurance agency and growing it with the help of expert agents, top marketing and branding strategies, and cutting-edge technology. For more info, contact us today.