Top 5 Reasons Agencies Switch Insurance Licensing Software Providers

Choosing the right insurance licensing software platform doesn’t have to be a daunting task. If you’re using spreadsheets or are considering changing your licensing software provider, this blog post is for you. 

We’ve crunched the data on several years of customer engagements and are pleased to share our findings with you. Use it to inform your search and perhaps help others in your agency appreciate the importance of exploring your options. Combining this “why” intel with our “how” intel can help you make the right choice for your agency.


Top 5 Reasons for Switching Insurance Licensing Software Providers

Cost Concerns With Existing Provider

Unsurprisingly, one of the primary reasons why insurance agencies switch insurance licensing software providers is cost. We hear three main drivers related to cost:

  1. The agency conducts a periodic review to determine if its costs are competitive. 
  2. The current software provider increases their price. 
  3. The agency discovers their costs are higher than anticipated. 

In your evaluations, remember that, as with insurance products themselves, the lowest price is not necessarily the best value.

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Poor Customer Service/Support

Another significant reason why insurance agencies switch insurance licensing software providers is poor customer service or support. Two drivers consistently surface:

  1. Software providers don’t respond promptly or fail to fully resolve inquiries.
  2. Software users and agency management feel the software provider is more invested in profitability than the agency’s success

Since it is difficult to judge service and support during the evaluation process, we recommend speaking to existing customers or checking reviews.


Features & Functionality Mismatch

The licensing landscape is constantly evolving. Having the latest and best features, functionality, and workflow in your insurance licensing software is an oft-cited reason for exploring options. Key drivers include:

  1. The agency requires functionality their current platform doesn’t offer, often due to growth or acquisition.
  2. Commonly used functions require many steps, clicks, or screens which users find slow, awkward, or inefficient.

Unlike support and service, which cannot be seen, signing up for a demo is a great way to evaluate the dashboards, features, and workflows of insurance licensing software. 

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Poor NIPR integration

The National Insurance Producer Registry (NIPR) is the main, central repository for information related to insurance licenses across the United States. Licensing software providers use an Application Programming Interface (API) to update records with the most current data from NIPR. Agencies often cite the following issues related to NIPR updates as reasons for exploring alternatives:

  1. Frequent, debilitating glitches create extra work or slowdowns for licensing staff.
  2. Irregular or infrequent updates that leave gaps in data accuracy. 

As a part of your evaluations, ask about – and verify – the frequency of NIPR updates. Some platforms, like Creative Compliance Hub, perform NIPR updates daily.


Need for Additional Services Beyond Insurance Licensing Software

Finally, growing insurance agencies sometimes switch licensing software providers because they need expertise and services their current software provider doesn’t offer, such as:

  1. Registered agent, Secretary of State and Annual Report filing services. 
  2. Agency management (e.g., formation, expansion, dissolution) filings and tax services.
  3. Consulting related to optimizing registration footprints, regulatory compliance, and licensing processes. 

A licensing software provider with expertise in insurance regulatory law and corporate services can be a tremendous asset to agencies of all sizes.

See The Creative Compliance Hub Difference For Yourself

Understanding what’s driving your peers to begin searching for a new licensing software platform has two main benefits: it can inform your research and help get your colleagues on board with the value of exploring options. 

Ready to make the switch? At 3HCS, we created our own insurance licensing software - the Creative Compliance Hub - after experiencing many of the same pain points that our agency partners do. From our intuitive dashboard to NIPR integration, our insurance licensing software has everything your agency needs to be successful - and it's backed by our team of legal compliance experts at an affordable price. Schedule a demo to see it in action.

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