How to Choose the Right Insurance Technology Solutions for your Business?
Modernizing a business, especially one in the insurance industry, isn’t an easy feat. Apart from overhauling legacy processes, insurers also have to implement the right insurance technology solutions and find the right technology partner. If you’re in the market for insurance technology services or solutions, then these steps will help you make the right selection:
Conduct Research
Since insurance technology or InsurTech is a rapidly flourishing sector, there is no dearth of insurance tech companies eager to serve you. Hence, before you choose the right insurtech solution, you must take the time to research your needs and requirements. Make a list of the issues you are trying to resolve and what results you want from the new solution. This will allow you to have a clear idea of what to look for in the solution and will narrow your search to a significant degree.
In case you aren’t familiar with the solution or technology, then you must familiarize yourself with the basics. After that, you must refer to the product guides offered by different service providers and compare them against your business needs and requirements.
Prioritize Scalability
Scalability is a major consideration you must make when choosing a new tech solution. While large businesses, in general, have a clear idea of where they currently are, where they’re going, and how they are going to reach their goals, the growth route of small businesses is often not as linear. Owing to such uncertainties, it is vital for small businesses to choose insurance tech companies that prioritize scalability.
Hence, you must ensure that the insurance technology services can easily meet your growing business requirements. To do so, you should first see if the solution is flexible enough to adapt to the highly-volatile business environment. After that, you should look for something with a range of functionalities you can use as your company expands. Finally, you must make provisions for future events.
Look for Industry Expertise
While vendors may have similar products on the surface, their expertise is usually confined to specific industries. Hence, it is vital for you to go for insurance technology services that have built considerable credibility in the industry.
Industry expertise along with client success stories reveal that the technology services or solutions provider has a clear understanding of the insurance industry and is aware of the common challenges faced by insurers. The company’s portfolio will help you understand where their specialization lies and if they have worked on projects similar to yours.
Consider Cybersecurity
When using third-party insurance technology services, the very last thing your business needs is lax security. Security breaches are currently on the rise, with multiple major organizations becoming prey to cyber-attacks. In addition, phishing tactics, malware, and numerous social engineering tactics are being employed by hackers to compromise data and systems.
The insurtech company needs to have the finest cybersecurity measures in place if they operate on data centers, backup systems, or third-party assets.
Test Before Buying
Before adopting insurance technology solutions, you must ensure it fits your requirements. Most vendors provide free trials or demonstrations. Hence, take advantage of these to test the product and ensure it works as expected. Before the trial begins, work with your team to develop evaluation criteria for all walkthroughs as well as a list of things to ask the vendor. Attempt to schedule demos such that the end-users, or at the bare minimum a member of their team, can participate.
Ask the Right Questions
Implementing insurance technology solutions involves considerable time and money resources. Hence, you must ensure that the team implementing the software knows what they’re doing. If you are short on time or budget, then bear in mind that highly customized solutions have a significantly lower implementation time. Here are some important questions to ask:
- Does the vendor have sufficient resources to dedicate toward implementation and onboarding?
- What kind of post-implementation support is available?
- How does the vendor ensure employees are onboarded seamlessly?
- How much time will it take for the complete onboarding and training?
Concluding Thoughts
Finding the right insurance technology solution can be challenging, but it is essential to ensure project success. It is worth conducting research as the advantages brought by the right selection can improve employee satisfaction, contribute towards cost savings, and drive business growth. The aforementioned steps will help you choose the best insurance technology services and find an option that will take your business to the next level.
