Since the dawn of the new decade, virtually every industry has seen its digital transformation either begin or accelerate. And life insurance and financial services are no exception.
As the digital shift continues, you will undoubtedly begin evaluating different insurance technologies to determine whether they deliver on their promise to help you do your job more efficiently, more effectively, and more profitably. But aside from assessing whether a specific software can help you achieve your business goals, what other points should you take into consideration to avoid selecting a solution that offers more challenges and complexity than simplicity and results?
These four questions can help you uncover the hidden red flags that could make your user experience with technology a disaster.
What’s their approach to building industry partnerships? Who do they already work with?
Whether you call it a referral, a testimonial, or social proof, the underlying principle remains the same. And that principle is external validation.
Who, besides the insurtech themselves, is talking about how great of a solution it is?
Does this company have established, trusted relationships with others in the industry?
While another person or organization’s perspective and opinion should never dictate yours, it can certainly help inform your decision. Ask around about whichever solution you’re evaluating. You could even ask that company to provide a way to get in touch with some of their current partners or users.
Has their information security program been vetted and certified by a 3rd party audit?
Data security is paramount. If you’re evaluating a solution that would store any potentially sensitive information about you, your business, or your clients, it’s essential to do your due diligence in ensuring that solution is built to handle that information with integrity.
One of the best ways to know whether you can trust a technology company’s security program is by checking for 3rd party certifications. There are tons of possible acronyms that can be used to certify information security – ISO, SOC 2 Type II, and others. It doesn’t necessarily matter which certification is achieved; the key element is that a third party conducted an audit of a company’s security program maturity and protocols and deemed it as acceptable per global regulations and standards.
What is their ownership structure? Any conflicts of interest?
The digitization of the industry is great because new tools emerge to help professionals in this space do their jobs better. But that also means it’s an attractive business for outside players to get into and for inside players to take advantage of.
Take a closer look at an insurtech’s ownership structure before you make a decision to implement it. Ask yourself whether there might be any conflicts of interest.
Does a potential competitor fund or remain actively involved in the product’s development or innovation?
Do the members of the team have sufficient experience and expertise to understand the challenges you’re facing and the ones it aims to solve with its solutions?
If you uncover an answer that makes you uncomfortable, push for further detail and explanation or look for an alternative to help you accomplish the same end result. It’s not worth it to move forward if you lack a sense of security and peace of mind from the start.
Do they offer dedicated personnel to help train and support you as you start to use the technology?
Insurtech is new, and with new things comes a learning curve. You want to make sure the team behind the technology company is built to support you for as long as you use its tools.
Have you been offered a dedicated customer success manager who will be with you every step of the way starting with initial onboarding and training and staying for the duration of your usage with the platform?
You can’t afford to invest in technology and not have anyone available to help answer your questions and ensure you’re getting value from it. Find out what user support looks like and determine whether you feel it will be sufficient relative to your needs and goals with the tool.
Be Confident in Your Selection of Insurance Technology to Support Your Business
By asking these four questions, you can safely enter a new partnership with an insurtech company with the confidence and trust that your information will be protected, and you and your team will be supported for as long as you choose to use that particular solution. It’s important you ask these questions before getting locked into a multi-year contract, so don’t be afraid to be blunt and up front. If the insurtech company is any good, answering these questions will be a breeze.