How Much Does Insurance Software Cost?
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Shopping for a new insurance management software is a lot like shopping for a new car.
If you’ve ever experienced the tedious adventure of buying a new vehicle, you know that specifications and amenities decide the final price tag.
A new-to-market SUV with all the bells and whistles is always going to be more expensive than a rusted-out beater, and the same can be said about insurance software—the more dynamic the program is, the more it’ll cost.
Does your agency need a Ferrari-like CRM to run smoothly, or could it accomplish everything that it needs to with a simpler, more affordable model?
The answer will vary based on each agency’s needs, but the question becomes less about a standardized price and more about deciding which software features are needed and how they’ll affect the overall cost. So how do you figure out which insurance software is right for your company? And how much will it set you back?
Sophisticated Insurance Software Costs More
A good agency management software is the cornerstone of any successful insurance operation as it provides the foundation for all business processes.
With insurance software prices ranging from under $1,000 to over a million in operating costs, it can be tempting to skip out on certain features in the name of saving money for your agency—but don’t.
The foundation of your agency’s operational efficiency is based on the efficacy of its software, and it will pay in the long run for your firm to invest in a solid groundwork of digital management. In the same way that you wouldn’t skimp on the foundation if you were building a home, don’t cut corners when establishing the base for your agency’s success.
Identify the key features that will make running your business easier and find a program that provides them. While the cost may seem steep upfront, it’ll cost more, in the long run, to pay for a program that doesn’t serve you or your policyholders.
Flat Pricing vs. Scalable Pricing
There are currently more than 70 insurance software programs available in the United States, ranging from single-agent consoles to management systems with upwards of five hundred users. Determine what type of usage or access you're paying for before you get into a scenario that adds costs as you add users. Some agency software scales in price per users or limits you once you've agreed to terms.
A Steep Learning Curve Can Cost You
Buying or switching to a new insurance software doesn’t just cost money, but it can also cost you valuable time.
A system with all the right features might seem like the absolute best choice at first glance, but you may later be surprised to learn that the interface is anything but user-friendly.
It doesn’t do you any good to have a super capable program that takes an eternity to master. The ultimate goal is to find software that balances essential features with ease of use.
That is why research is your most valuable tool in the software selection process.
New Software May Require a Technology Upgrade
Switching to new high-powered software can be an exciting step forward for an insurance firm; however, you must consider whether or not the new program is compatible with the agency’s current hardware.
Having software with the efficiency of a turbojet engine is incredible, but it’s not going to fit under the hood of a VW Beetle.
Take a look at the current hardware in your office and what compatible software options are available to you. You may be able to save money if an appropriate software for your needs can function on your equipment, but if not, you’ll need to upgrade.
In the ever-evolving world of data management, it is essential to have up-to-date technology that supports your software. Agencies that don’t keep up with these advances in technology risk significant obstacles to their operational efficiency in the coming years.
The Benefits Outweigh the Costs
It can be hard to come to terms with the price of a new agency management system and the costs associated with the switch, but with the world trending in the direction of complete electronic automation, the benefits far outweigh the costs.
Don’t be caught on the back foot while the world—and your competitors—move toward more sophisticated software solutions.
Choosing a management program doesn’t have to be a nightmare. If you’re in the market for a new agency CRM, contact NASA and see how our software Eclipse can simplify your operation and help you better serve your policyholders.