Choosing the Right AMS for Your Agency

Table of Contents

• AMS comparisons
• Why agencies switch to AMS
• Choosing the right AMS
• Learn more about AMS+
• AMS selection FAQs 

Selecting the Right AMS: A Step-by-Step Process for Health Insurance Agencies

Sixty percent of buyers regretted at least one software purchase in the past 18 months. This regret most often came from overspending, implementation challenges, or tools that failed to meet expectations. Good news, though, there is an easy way to avoid buyer’s remorse. It starts with understanding your needs and knowing what to ask before committing to a software solution.

For health insurance agencies, choosing the right agency management system (AMS) is one of the most impactful technology decisions your agency can make. Because not all systems are designed with insurance-specific needs in mind, finding the right fit for your team is essential.

In this blog, you will learn how to choose the right AMS for your agency by identifying your needs, evaluating vendors, and asking critical questions.

Comparing Common Agency Management Solutions

To choose the right AMS, it helps to first understand the tools health insurance agencies commonly use today. Most agencies rely on one of the following options:

• A generic customer relationship management (CRM)
• A custom-built, homegrown solution
• Digital or paper spreadsheets
• An industry-specific AMS

Generic CRM

Customer relationship management (CRM) platforms such as Salesforce, Zoho, or SugarCRM are designed to centralize customer data, manage interactions, and support agency workflows. While CRMs offer flexibility, they are usually business generic. They are not designed for insurance-specific needs. These solutions often require extensive customization to meet their needs.

Homegrown Solutions

Some health insurance agencies choose to build homegrown solutions. While they give agencies the ability to choose functionality and determine how it works, it can come with some challenges. They can be difficult to scale, costly to maintain, and inefficient over time. In addition, building a homegrown solution means managing system updates, security, and ongoing enhancements entirely in-house.

Spreadsheets & Paper Files

Many health insurance agencies start out using paper files and spreadsheets. While these options still serve a purpose, as your business grows, they often struggle to keep up with increasing complexity and operational demands.

Relying on them to run your agency can introduce significant risks and inefficiencies. Spreadsheets are often:

• Vulnerable to fraud
• Require manual backup
• Tend to be error-prone
• Are rarely compliant with insurance regulations
• Don’t foster team collaboration — inconsistencies and multiple spreadsheets can create friction and waste time
• Are not scalable
• Require a significant time commitment
• Don’t create strong client-agent relationships

An Industry-Specific AMS

An industry-specific AMS is the most common choice for insurance agencies. These systems are designed specifically for insurance needs, with some tailored to particular niches, like P&C or life and health insurance. AgencyBloc’s AMS+ solution, for example, is built specifically for health insurance agencies.

To learn more about how an industry-specific agency management system differs from a generic CRM, check out The Agency’s Guide to Understanding an Agency Management System vs. a CRM.

Reasons Agencies are Switching to an AMS

As your agency grows, spreadsheets and generic systems that once worked can often become limitations. This can happen because the tools were not built to support the complexities of insurance operations or your team has simply outgrown their effectiveness.

These are the key ways an industry-specific AMS helps agencies:

• Efficiency & Growth: An industry-specific AMS streamlines daily operations, reducing manual work and freeing teams to focus on sales, retention, and growth initiatives.
• Data Centralization: An AMS keeps all client, policy, agent, and communication data in one place, eliminating silos and ensuring everyone works from accurate, up-to-date information.
• Industry-Specific Functionality: Unlike generic CRMs, insurance-focused AMS platforms include built-in tools for agent management, policy tracking, compliance, and reporting.
• Workflow Automation: Workflow automation tools can help your team work more efficiently with automatically trigger actions based on defined events, helping streamline processes and reduce manual effort.
• Client & Prospect Communication: The #1 reason clients leave is due to a lack of regular and meaningful communication. Better communication with both your prospects and clients is essential for growth in your book of business.
• Mobility & Flexibility: Cloud-based access allows agencies to work securely from anywhere, service clients faster, and reduce time spent on manual tasks.
• Security & Compliance: A modern AMS protects sensitive data with data protection and supports compliance with industry standards, like HIPAA and SOC 2, while ensuring agencies retain ownership of their data.
• Retirement & Succession Planning: Organized, well-maintained data in an AMS increases the value of an agency’s book of business and simplifies transitions when selling or retiring.
• Built-In Integrations: Many AMS solutions will offer pre-built integrations with your business-critical tools, like ACA and Medicare quoting and enrollment tools, to support smoother workflows.

Access to additional capabilities such as marketing tools and commission management can add value to your AMS.

These capabilities highlight why an industry-specific AMS has become increasingly essential for health insurance agencies. Having a system designed specifically for your insurance needs will help your agency grow with confidence.

Are you ready to make the switch? Let's dive into the essential steps to help your team confidently choose the right AMS for your agency.

5 Steps for Selecting the Right AMS

Selecting the right agency management system is a critical decision that impacts your operations, team efficiency, and long-term growth. These five steps will help guide your agency through the process with clarity and confidence.

Step 1: Identify Your Pain Points & Goals

Before investing in new tools, processes, or strategies, it’s important to define the challenges your agency faces and what you want to achieve.

The first step is identifying your pain points. What are the challenges, frustrations, and inefficiencies your agency is experiencing? Common examples include:

• Manual tasks that take up too much time
• Difficulty scaling your operations
• Inconsistency in processes
• Uncertainty about what’s next for your agency and how to step into your next evolution

Once your pain points are clear, you can turn them into meaningful goals. SMART goals help transform challenges into actionable steps by ensuring your goals are:

• Specific: Clearly define what you want to improve or change
• Measurable: Determine how success will be tracked using metrics or milestones
• Achievable: Set goals that challenge your team without creating burnout
• Relevant: Ensure goals support your agency’s growth strategy and client needs
• Time-Bound: Assign deadlines to create urgency and accountability

Step 2: Identify Your Needs & Wants

Once your pain points and SMART goals are clearly defined, the next step is to determine what you truly need from your AMS versus what you want.

Needs are the non-negotiable features your agency requires to operate efficiently, remain compliant, and support daily workflows. Without these capabilities, the AMS will not meet your core business requirements. Most agencies consider the following essential AMS needs:

• Customer relationship management capabilities
• Security & compliance
• Policy & carrier management
• Scalability & customization
• Sales & lead management tools
• Integration capabilities
• Commissions tracking & processing
• Reporting & analytics capabilities

Wants are features that improve efficiency or user experience but are not essential to daily operations. While they can increase productivity and provide a competitive advantage, core system requirements should always take priority.

Examples of common AMS wants include:

• Marketing & social media support
• Scalability & customization
• Automated workflows for emails, text messages, & tasks
• Integrated VoIP call recording, built-in documentation, & compliance management
• Custom dashboards & user interfaces

By clearly defining your must-have requirements and preferred features, you can choose an AMS that meets your needs while supporting future growth.

Step 3: Research Your Vendors

Once your AMS requirements are clearly defined, the next step is to evaluate potential vendors. Taking time to research vendors upfront helps your agency make informed decisions.

Start by learning the fundamentals of each vendor you are considering. Understanding who they are, who they serve, and how they operate will help you assess whether they are an ideal long-term partner. Key areas to review include:

• Company history
• Target audience & industry focus
• The team behind the organization
• Reviews, testimonials, & online presence
• Onboarding, data migration, & support approach
• Security, compliance, & data ownership

Key Questions to Ask Potential Vendors

As you narrow your options, ask targeted questions that address implementation, support, and long-term viability. Pay close attention to how vendors handle onboarding and data migration, as these processes play a major role in adoption and success.

Questions to ask about onboarding and support include:

• What does the onboarding process look like?
• How is data migrated into the system?
• What ongoing support and educational resources are available?

Want more questions? Check out our top data migration questions checklist to ask your technology vendors.

Data security should also be a top priority. You handle sensitive client information, so it is essential to understand how that data is protected and who ultimately owns it.

Questions to ask about security and compliance include:

• How often does the system receive updates or enhancements?
• Who owns my data, and how can it be accessed if I leave?
• Does the vendor hold certifications, such as SOC 2 Type II or HITRUST, or meet HIPAA or HITECH requirements?

For more questions you should ask potential vendors about data security, download our Agency Management System Security Questions Checklist.

By focusing on these questions, you can narrow your options and choose a technology vendor that aligns with your agency’s goals and values.

Step 4:  Choose the Right Technology Partner

Because implementing a new AMS affects your entire agency, the decision should be made collaboratively to ensure it supports all workflows and responsibilities. As you evaluate your options, watch out for common decision-making pitfalls. For additional guidance, download our free checklist, 7 Questions to Ask During Your AMS/CRM Sales Demo.

Taking a deliberate approach and avoiding common pitfalls allows your agency to choose a system that supports your team now and in the future.

Step 5: Manage the Change

One important factor that is often overlooked is how transitioning to a new system impacts your team. Support your team by ensuring everyone feels confident, supported, and aligned from the start.

Here are a few practical ways to support your team during the transition:

• Encourage hands-on learning by using the AMS during everyday tasks. This approach reinforces training, increases confidence, and ensures features are applied in practical ways.
• Create consistency by standardizing workflows, tasks, and documentation across your team. Clear guidelines reduce confusion and support efficiency and onboarding.
• Use vendor-provided resources such as tutorials, knowledge bases, and webinars to support ongoing learning and best practices without additional investment.
• Continue to learn and adapt what works best for your team by regularly reviewing workflows and gathering feedback.

Focusing on your team during a system transition helps your agency handle change more easily.

Learn More About AgencyBloc’s AMS+ Solution

AgencyBloc's AMS+ solution is a comprehensive, industry-specific platform designed to help health insurance agencies streamline operations, boost sales, manage compliance, and enhance client retention. Key features include:

• Health Insurance CRM: Centralize leads, clients, and policies
• Sales Enablement Tools: Drive productivity with automated lead routing, task management, and tracking
• Policy & Customer Management: Simplify renewals, servicing, and client engagement
• Agent & Downline Management: Efficiently manage agents and agencies
• Built-in Productivity Tools: Utilize VoIP (phone system), compliance tools, and automated workflows all within the same AMS
• Industry Integrations: Connect to quoting and enrollment platforms and other key solutions, ensuring accurate data and increasing efficiency
• Custom Reporting & Analysis: Gain actionable insights into sales and operational performance

Want to dive deeper into how to choose the right AMS? Download our free guide

FAQ: Common Questions About Choosing the Right AMS

1. What is the main difference between an AMS and CRM? The main difference between an industry-specific AMS and a customer relationship management (CRM) tool is who they are built for.

A traditional customer relationship management (CRM) system is designed for a wide range of industries. Its primary focus is tracking relationships, communications, and sales activity with prospects and clients.

An agency management system (AMS), on the other hand, is purpose-built for the insurance industry. An AMS goes beyond relationship management to help agencies manage their entire book of business. This includes policies, carriers, commissions, compliance-related data, communications, and ongoing servicing activities.

2. What can be tracked within an AMS? Because an AMS is designed specifically for insurance agencies, it allows you to track far more than basic contact information. Most systems support tracking for prospects, individual and group clients, policies, carriers, agents, commissions, and communications, all in one centralized platform.

Industry-specific records often include the key information such as policy numbers, carrier details, coverage types, and group information. For data that is unique to your agency, custom fields can be added to ensure your system aligns with your workflows.

3. How is data backed up on an AMS? It depends on how the AMS is hosted. Cloud-based systems typically back up data in real time across multiple locations. This ensures the most current version of your data is always protected, even if a device is lost or damaged. In contrast, on-site hosting requires a manual backup and is typically only done, on average, once per day.

To make sure you find a secure agency management system, read this blog: The 6 Hallmarks of Secure Agency Management Systems.

4. How long does it take for your team to be up and running using an AMS? Every agency’s situation is different, but implementation generally includes data migration followed by onboarding and training. The goal of onboarding is not just to move data, but to ensure your team feels confident using the system effectively.

5. What happens during AMS onboarding? While onboarding processes vary by provider, you can expect guided training from a knowledgeable team member. Training is often delivered in stages. To see an outline of what onboarding may look like, grab our checklist: New Agency Management System Onboarding Checklist.

6. What’s the standard for customer support with an AMS provider? There is no “standard” when it comes to customer support, but there are definitely things to look for to ensure that the AMS vendor you choose can support you. Look for providers that offer multiple support channels, such as phone, email, or live chat, and ask about response times and ongoing education resources.

The level of ongoing support you’ll receive will be vital to your success with the system.

Posted by Shannon Beck on Thursday, January 22, 2026 in Insurance Agency Management System

1. vendor vetting