The term insurance management software refers to a system that helps carriers, MGAs or agencies with policy application administration, billing, claims and regulatory compliance.
Many insurers integrate customer relationship management software (CRM) and policy administration software (PAS) so agents and service staff can see policy data (in the PAS) alongside customer engagement (in the CRM). These two types of insurance management software tools run the core operations of an insurance company.
Internet Solutions for Insurance (ISi) is a PAS that helps small insurers and MGAs compete. Think of a PAS as a centralized repository for everything related to each account, including the assigned agent and integrated third parties. Think of a CRM as a tool for driving new business and fostering better customer relationships. Here’s more information about how these two differ and work together.
3 Main Types of Insurance Management Software
The focus of this article is on CRM and PAS, as these are the software solutions that carriers and MGAs use, especially as they scale and grow. However, there is also AMS software, which focuses on running an insurance agency. Here is a brief description and examples of each type of insurance management software:
Agency Management Systems (AMS) An AMS is a comprehensive software platform designed to manage the entire operation of an insurance agency. AMS (such as Applied Epic, HawkSoft, AgencyBloc, Vertafore AMS360) is a tool for agents and brokers.
AMS manages the administrative side of the business for independent insurance agents. It often includes a CRM within its suite, but a CRM cannot handle the core functions of an AMS.
Customer Relationship Management (CRM) A CRM system is a software solution designed to manage and track all interactions with an agency or insurance company’s customers and prospects. Managing general agents (MGAs) also use CRM.
In short, CRM is a tool for sales, marketing and customer service. It’s useful for managing leads, automating marketing campaigns and providing a comprehensive view of a customer’s insurance history. A CRM (such as Salesforce, Microsoft Dynamics, HubSpot) manages relationships and service interactions.
Policy Administration Systems (PAS) offer full lifecycle management for carriers. A P&C PAS (like ISi, Insly, Bindable, OneShield, Guidewire, Duck Creek) can automate tasks and offer a 360-degree view of a customer’s profile.
ISi performs rate and quote directly in its system. It can also integrate with external raters (ISO, credit, DMV and replacement cost tools).
PAS features, like automation and integration with third parties, reduce manual errors and delays in policy underwriting, policy endorsement, billing and claims.
Carriers typically use CRM and PAS together, with a PAS acting as the operational backbone and the CRM serving as the engagement layer.
Integrations allow customer service representatives (CSR) and agents to see both policy data (in PAS) and customer communication history (in CRM).
Here’s more on the similarities and differences between CRM and PAS.
CRM vs PAS: What’s the Difference?
Many insurance companies and MGAs integrate their CRM with their PAS to get the most comprehensive view of their business.
Usually, the CRM handles the initial lead and relationship management, and once a policy is sold, the data is passed to the PAS for underwriting and administration.
The integration between a CRM and PAS allows a business to streamline operations, enhance the customer experience and ensure that all customer data is consistent across both systems.
With a PAS like Internet Solutions for Insurance (ISi), the insurer and agent have a quoting engine, and each quote’s information stays in the system. A CRM saves information about all prospects, even if they’ve never been quoted.
What ISi Can Do That Looks Like CRM
ISi is a P&C insurance management system designed for carriers to administer their products end-to-end with maximum operational efficiency. ISi offers both an administration solution and a management solution for insurance companies, while working alongside a CRM. There are certain things ISi can do that look like the functions of a CRM.
For example, ISi:
Stores policyholder, agent and customer data (name, address, contact information and customer number).
Tracks agent relationships and calculates commissions.
Provides customer portals where policyholders can view documents and make payments.
Allows grouping of multiple policies under a customer number, with a single snapshot of an account/household.
Maintains a history of policies, billing and claims for each customer.
Can send automated emails to customers.
When Is a CRM Needed?
Sales & Marketing Automation: for lead tracking, campaign management or drip email tools.
Prospect Management: ISi starts at the quote stage; a CRM tracks leads before a quote.
Customer Engagement Tracking: A CRM can send emails and hold a history of emails, calls and meetings.
Service Ticketing/Case Management: PAS doesn’t replace these service-desk tools.
Insurance Use Cases for Carriers:
Manage agents
Track prospects
Run renewal campaigns
Sending follow-up emails
Creating to-do lists for agents
Managing policy renewal notifications
Upsell or cross-sell
A Deeper Look at What a CRM Does
CRM refers to the strategies, technologies and practices a company uses to manage and analyze customer interactions and data throughout the customer lifecycle. The goal of a CRM system is to improve business relationships with customers, assist in customer retention and drive sales growth.
In essence, a CRM system is where all customer information is stored, including contact details, purchase history and past communications. A CRM helps agents and carriers understand customers better. It also provides customers with a better experience and more personalized services.
Examples of CRM: monday, pipedrive and HubSpot.
Why Carriers Use a CRM
Agent/Broker Relationship Management
Track producer appointments, licensing, performance and commission history.
Manage distribution channels: Independent agents, MGAs and brokers.
Customer Engagement
Track policyholder interactions outside of the PAS (calls, emails, meetings).
Run retention campaigns (renewal reminders, cross-sell, upsell).
Manage complaints or service requests.
Internet Solutions for Insurance (ISi), the insurer and agent have a quoting engine, and each quote’s information stays in the system. A CRM saves information about all prospects, even if they’ve never been quoted.
Sales & Marketing
Manage leads before they ever become quotes.
Run marketing campaigns (email, SMS, digital ads) to acquire new customers.
Track conversion rates from lead to quote to bind.
Service & Support
Some CRMs integrate with call centers or chatbots.
Helps carriers resolve issues quickly and keep a full history of customer interactions.
Automated Workflows
CRMs can automate a variety of time-consuming tasks.
Cross-Sell and Upsell
Identify opportunities to cross-sell insurance products or upsell to higher coverage limits.
Policy Administration System (PAS)
Essentially, a PAS, like ISi, is the operational backbone for an insurer's business, handling everything from a policy's creation to its eventual renewal or cancellation. It manages the entire lifecycle of an insurance policy. It is an administration solution and an insurance management solution for carriers.
Core Functions of PAS:
Quoting and rating: ISi calculates the premium for a policy based on the risk and coverage details.
Underwriting (UW) and eligibility enforcement: ISi helps insurers assess risk and determine premiums for new policies based on their UW manuals. It can automate UW rules and workflows.
Policy administration: ISi generates and issues policy documents, renewals, contracts, cancellations and endorsements. The system stores all policyholder and coverage information.
Billing, accounting and commissions: ISi manages the billing schedule and processes payments from policyholders. The system automates late notices, cancellations and reinstatements. ISi interfaces with general ledger systems and tabulates then pays agent commissions.
Claims management: ISi manages first notice of loss (FNOL), reserves and payments. A separate claims management system provides a comprehensive view of a policy after a claim is filed. ISi helps measure loss ratios and experience.
Regulatory compliance: ISi provides notices and forms and posts financial activity in the general ledger (GL).
Documents and communication management: ISi generates declaration pages, endorsements, notices and invoices. The system provides a policyholder and an agent portal for online access. ISi offers secure distribution with tools like AuthTokens for direct access to documents.
Integrations: ISi works with rating bureaus and many providers of third-party data tools, including DMV, credit providers, payment gateways and reinsurance/ERM tools. The platform reduces manual entry and ensures compliance.
Automation: Maintenance jobs run renewals, billing, cancellations and reporting automatically. Table-driven rules enforce underwriting and rating guidelines.
Audit Trails: Version control in ISi spans code, configurations and documents. Carriers usually combine source control systems (Git/SVN) with table snapshots and form versioning to maintain a full audit trail. A comprehensive audit trail is critical for both IT stability and insurance compliance.
Key Differences: CRM vs PAS
Insurance Management Best Practices With a PAS
To effectively manage their business, small insurers and MGAs need to focus on a few key insurance management software best practices. These practices help them stay competitive by automating processes, managing costs and enhancing the customer experience.
1. Choose a Platform Based on Goals
A cloud server is better if you value scalability, accessibility, and lower IT overhead. A local server is better if you value control, sovereignty and deeper customization. ISi offers both options.
A cloud-based platform is hosted on a vendor's servers and accessed through the internet. For small insurers, it's a better choice than a traditional, on-premise system that requires a large IT team. With ISi, you have:
Automatic Updates: ISi handles all software updates and maintenance. Your team always has the latest version, including new features and security patches.
Accessibility: Your team can access the system from anywhere with an internet connection.
2. Prioritize a Modular System with APIs
Choose a core platform like ISi that has a modern architecture and APIs (Application Programming Interfaces).
Integration: APIs allow different software systems to communicate with each other. This is crucial for small insurers who want to integrate with third-party data providers, payment gateways or sales tools like a CRM.
3. Automate Manual Tasks
Small insurers and MGAs often rely on manual, paper-based processes. Adopting software that automates these tasks is critical for efficiency.
Automated Underwriting and Rating: ISi automates underwriting rules, instantly generating a quote based on the client's information. Automation reduces errors.
Automated Policy Issuance: ISi automatically generates and issues policy documents and billing statements once the insurer accepts an application.
Streamlined Renewals: ISi can automate the renewal process, sending out renewal notices and updated quotes without manual tasks.
4. Enhance the Customer and Agent Experience
For a small insurer, providing an excellent customer and agent experience is a key competitive advantage.
Online Portal: ISi provides a secure online portal where policyholders can view their policy documents, make payments and initiate claims. This reduces the number of phone calls and emails for service.
Intuitive Interface: ISi is easy for your agents and underwriters to use, and training is provided. A user-friendly interface increases productivity.
Digital Communication: ISi supports digital communication via email, allowing agents to send automated policy reminders and payment notifications to clients.
Modotech’s ISi is designed to integrate with most CRM tools that agencies and carriers use, not replace them.
Transitioning from a legacy system or another insurance management software is easy. Book a free demo to see how ISi can help your insurance business thrive.