Is Insurance Agency Software Worth the Investment?

Is Insurance Agency Software Worth the Investment?

You’ve got a lot on your plate: prospecting; service issues; renewals; running your agency; keeping up with the latest legislative and market news; and the list goes on. Then there’s the rest of your life and that needs attention, too. There are only 8,760 hours in a year. Each one is valuable and, once spent, is non-refundable.

Adopting insurance agency software just because it’s there is probably not adequate justification. If that insurance agency technology can save you time, however, well that’s different.

How Much is Your Time Worth?

So just how valuable is each hour? Invaluable and precious beyond measure. However, for the purposes of this post, let’s have some fun with math and put a dollar figure on the value of your work hours.

First, estimate how many hours you work at your insurance agency in a year. Spend 40 hours a week on the job for 50 weeks and your investing 2,000 hours. Adjust this number to reflect your reality — including all that overtime on weekends, evenings and holidays.

Now, calculate how much you earn from all that work. To simplify the math, we’ll assume $100,000 for this example, but check your last pay stub or tax return to get something more accurate. Divide your earnings by the number of hours worked and there’s the value of your work hour. In this case, $50 per hour ($100,000 divided by 2,000 hours). What’s your figure? Take a few minutes and get something close to reality

For purposes of this post, however, we’re going to assume you’re looking at an agency management system. First, because these platforms can save you and your team lots of time. Second, because NextBroker, our agency management software, is at the core of NextAgency. So yes, I’m being self-serving here, but the calculations that follow apply to most any technology you’re considering for your agency.

A Time Journal

Let’s do another exercise. Fair warning, this one is a bit more annoying. For one week, keep a diary of inefficient busy work you do. Don’t count time spent selling or servicing clients. That’s your job. We’re talking wasted time. Spend five minutes chasing down a client file? Write that down. Spend three minutes looking up the phone number of a prospect? Ten minutes tracking down the Post-it with that critical information you need? Write those down.

Work from home only to discover a critical file you need is back at the office? Write down the drive there and back again. Spend hours going back and forth with a prospect to track down the age of the third child of the eighth employee in a thirty-person group you need to wrap up a proposal? Make a note. Spend five minutes trying to recall which client had a billing problem and which had claims issues? Write that down, too.

You get the idea. Any time you’re spending that isn’t directly related to selling or servicing clients is probably wasteful busy-work. Ask your staff to do keep this time journal, too. (Choose a week in which your staff is processing commissions to sub-agents because a) that’s painful; and b) NextBroker greatly simplifies that task so we’re going to look really good in a few paragraphs

Add it Up

Now let’s do the math. Add up all this unproductive minutes you spent in a week and divide by 60. That’s the hours you wasted. Or, put another way, that’s the number of hours you’re investing in being less than efficient.

Multiply this total by your hourly rate and you now have a sense of how much money you’re investing in inefficiency. Spend just an hour a day on this busy work and at our hypothetical rate of $50 per hours and your busy-work is costing you $250 each week. That’s $12,500 per year — if you take two weeks off.

And that’s just what you’re investing. Your staff pays a price for inefficiency, too. Do these calculations for your team and add the result to yours. The time and money adds up fast. Some agencies are wasting tens of thousands of dollars per year.

Is the Investment Worthwhile?

Helping you and your team be more effective and efficient is what agency management systems like NextBroker do. We place client, carrier and agency files are at your fingertips, 24 hours a day wherever you are. The same with contact lists for clients, partners like general agencies and others. Time spent tracking it down, let’s see, carry the zero. Yeah, that’s no time wasted.

What unproductive busy-work NextBroker can’t eliminate gets done quicker. Until carriers and your clients all join the 21st century, some paperwork is inevitable. We help you track that paperwork, which saves even more time.

Let’s say NextBroker reduces your wasted hours by half (we think you’ll save more time, but 50% is an easy number to work with). Applying that savings to your previous assumptions, that’s a savings of $6,250 annually; just for you. Add in the savings your team will experience and the savings rapidly multiply.

On the other hand, your investment in NextAgency is surprisingly affordable. To calculate your agency’s licensing fees just go to www.NextAgency.com/pricing. And when you’re calculating your agency’s cost, remember, support staff use NextBroker for free. And NAHU members save 11 percent.

Do the math. Compare the cost of what you’re spending now on inefficiency and compare it to investing in the efficiency NextBroker’s agency management system delivers. And this only takes into account the value of NextBroker. NextAgency does a lot more, as you’ll see by going to NextAgency.com . While you’re there, please sign up for a webinar to see NextAgency in action. We’re confident that’ll be time well spent.

NextAgency Principles: Part II

NextAgency Principles: Part II

Software that doesn’t evolve and grow is software you won’t be using for long. We’re constantly improving NextAgency, our agency management platform and human resources tools. We think it’s important for you to understand the principles that guide this development and the company behind NextAgency, Take 44, Inc.

In a previous post I shared how the principles of starting with brokers and supporting, as opposed to interfering with, broker-client relationships shaped the development of NextAgency. In this post we’ll explore our commitment to empowering choice and to being realistic. (And in the next post we’ll address our fifth principle concerning privacy and security).

Just to recap, here are the five key principles we focus on at Take 44:

  • Start with brokers: build from brokers out.
  • Don’t interfere:  broker-client relationships are paramount.
  • Empower choice: brokers and clients choose their own vendors.
  • Be realistic: don’t overpromise.
  • Protect data: offer secure systems and clear permissions.
Empower choice

Too often, technology companies expect users to change how they behave in order to use a product. Think about accounting software that require you to change how you keep your books. Or, closer to home, agency management platforms that require you to change how you sell and service clients. We think they’ve got it all wrong.

If you’re shopping for an agency management system, like the NextBroker component of the NextAgency, odds are you’re already a successful insurance broker. We’re very affordable. Still, if you can invest in making your agency more effective and efficient, you’re already making sales. Why then would you buy software that requires you to change the voodoo that you do so well? Or change the carriers or general agents you work with?  The software you invest in should help you do what you do better, not to change what you do.

The same is true of software you give your clients. Should they change their payroll company because you give them free HR software? Changing vendors often costs time, money and hassle. So, is software that forces your clients to change their relationships really free? We don’t think so.

For too many technologies, changing the way you work is a price you pay to use their systems. And to them, it’s a price you should happily pay. After all, a lot of start-up founders view themselves as innovators reinventing the way the world works. And that includes changing the way you work. They believe they know your business better than you do. This view is especially common when company leaders have more business degrees than business expertise.  They build software that expects you to work the way they think you should.

We believe no one knows more about your business than you do. So we designed NextBroker to adapt to you. Similarly, we think you should choose who you work with, too. Which means we don’t force you to use a particular carrier or general agent. NextAgency is built to be flexible. We help you work more easily with you who want to work with.  It’s really that simple — and important.

Be realistic

We think NextAgency is pretty cool (to use the technical term). We’re confident our agency management system, NextBroker, will help you and your team sell to more prospects and deliver better service to clients.  In short, we think we deliver on what we promise.

We also think it’s important not to overpromise. We’re a data management company. NextBroker helps you manage your agency, client and carrier information and make it accessible to your entire team, at any time from anywhere. We help you use that data to be better informed about your business and to get information where it needs to go. Put another way, we make running the business of your agency easier so you can do more business.

NextBroker makes getting quotes easier, but it’s not a quoting system. It makes creating and tracking enrollment kits easier, but it’s not an enrollment platform. NextBroker helps you track commissions, but it’s not a an accounting system. When companies respect their customers they don’t overpromise. That’s why we are realistic about what we do — and don’t do.

Current users frequently ask for added features and tools (of course they ask for different tools and sometimes ask that something someone else wants be removed because it’s “in the way”). Some of their ideas are great and are now part of our product road map. But we won’t overpromise. NextAgency does a lot and will do more moving forward. And what NextAgency does it does well. We simply refuse, however, to promise that it does everything.

One thing NextAgency does well is protect your and your clients’ data. More on this in Part III.

NextAgency Principles: Part I

NextAgency Principles: Part I

NextAgency is a powerful agency management system with CRM, marketing and commission management tools designed to save life and health agencies time money and clients.

NextAgency is available now, and we’re constantly improving it with new features and tools. The platform is expanding, too. For example, we started off supporting just employee benefit agencies. Now we have tools for brokers selling individual or group coverage, benefits or property and casualty insurance, and support a number of coverage types.

Because NextAgency is evolving, we think it’s important for you to understand the principles that guide our software development and drive the company behind the platform, Take 44, Inc. We have five key principles:

  • Start with brokers: build from brokers out.
  • Don’t interfere:  broker-client relationships are paramount.
  • Empower choice: brokers and clients choose their own vendors.
  • Be realistic: don’t overpromise.
  • Protect data: offer secure systems and clear permissions.

This post explores the first two principles. The rest are explained in Part II and Part III.

Start with brokers. 

Some vendors selling software to brokers started out as PEOs, payroll companies or HR administrators. Eventually they realized the value you deliver to your clients. They changed their marketing and grafted some broker-facing tools to their existing platforms. This was smart. At the end of the day, however, they’re still PEOs, payroll companies and HR administrators.

On the other hand, NextAgency started  as an agency management system. Everything we build is centered around helping you grow your business. No big surprise there. Three of Take 44’s founders are licensed agents (and the fourth a carrier executive). Two of us are past presidents of the National Association of Health Underwriters. We not only understand what you do, we appreciate what you do. “Your Value. Our Tech. Unbeatable.” is more than our marketing statement. It’s our reason for launching NextAgency in the first place.

This focus is why NextAgency is an agency management system designed for life and health insurance brokers. Everything we build orbits this principle. Of course, we realize no two agencies are alike. So we enable you to easily customize records for cases (prospects and clients), policies, sub-agents, commissions and contacts. And it’s why we recently (note: updated March 2020) integrated with Ease, the benefit administration software.

Don’t interfere.

With this focus, it’s only natural we help help you strengthen your relationship with prospects and clients. This means not getting between you and them. This approach is rarer than it should be. Too many health insurance companies, for example, think they “own” the groups you bring them. They’re wrong. They are your clients. Want proof? When’s the last an employer fired their benefits broker at the suggestion of their health insurance company? Yet employers fire their carriers on the advice of brokers on the first of every month.

The same holds true with software. Too many technology companies believe that once your clients start using their product, they own them. If they want to cross-sell to your clients they will, regardless of your wishes. They’re wrong and they shouldn’t. You are your clients adviser, consultant and advocate. You have the primary relationship with them.

Yes, this will cost us some money. Holding to principles sometimes does that. It’s a price worth paying as it reflects who we are.

At NextAgency we start with brokers and we bolster your client relationships. One of the outcomes of this approach is that we don’t force you to change who you work with and how you work with them in order to use NextAgency. That’s the topic of Part II.