An insurance agency management system (AMS) is the software in which an insurance agent or broker keeps every client, every policy and every commission. It is the agent's main desk. An insurance agent sells policies on behalf of insurers. A broker arranges cover for a client with whichever insurer fits best. Both are paid a commission, a percentage of the premium, by the insurer.
Most insurance for businesses is not sold by the insurer directly. It is sold by an agent or a broker, as the page on insurance distribution explains. An agent with hundreds of business clients cannot keep track of them on paper. So the agency management system holds each client's details, the policies the client holds and the date on which each one renews. It records the commission due on every policy. It also keeps every email, call note and document about the client.
Consider an agency that looks after a chain of twelve restaurants. The chain needs cover for its buildings, its kitchen equipment, its delivery vans and its staff. Three months before the renewal date, the system reminds the agent. The agent collects the latest details, such as the number of vans and the value of new equipment. The comparative rater inside the system asks several insurers for a quote at once. For larger risks, the agent sends a full submission, the application for cover, to each insurer. There, an underwriter reviews it on an underwriter workbench. The agent compares the quotes with the client and places the policy with the insurer the client chooses. The insurer then issues the policy in its insurance core system, and the agent's system records it.
Filling in each submission by hand takes hours. AI for insurance submissions now reads the client's documents and fills in the form. The agent checks the form before sending it.
Agencies use two other tools around the main system. In America, every agent must hold a licence in each state where they sell, and insurance producer licensing software tracks these licences. Brokers who serve businesses use commercial insurance broker software for quotes and sales material. Most agency management systems are sold to the tens of thousands of independent agencies in America, and much of this software is built in Hyderabad and Bengaluru.