When it comes to insurance, technology companies have been used in the past for more of a novelty than a serious business venture.
However, with consumer trends trending towards digital experiences and automation, insurance companies see an opportunity in newer technologies like robots and virtual assistants that they can use to improve customer satisfaction and generate rankings on search engines like Google. Consequently, many insurtech companies have come upon the scene to cater to the requirements of businesses and customers.
Here are some essential questions companies must ask before implementing Insurtech solutions.
What Results Do You Expect from Using These Services?
The prominent reason insurance companies are implementing newer technologies is that automation and digital experiences improve customer satisfaction.
However, companies must measure the results of using these services and not just rely on anecdotal evidence or gut feelings.
By measuring results, insurance companies can determine whether the solutions provide value to their customers and improve customer satisfaction.
How Will You Measure the Success of This Solution?
Insurance companies need to follow a structured approach to ensure that their solutions are successful when measuring results. An excellent first step is to define specific goals and expectations on how they want the services to impact their business. From there, insurance companies can map out strategies to perform measurements throughout the process.
It includes setting metrics for success and finding ways to collect data from services that can be applied back to different departments in the company.
How Will You Overcome Any Barriers That May Get in The Way of Implementation?
According to a survey by the Australian Prudential Regulation Authority (APRA), around 80 percent of insurers in the country are using Insurtech.
Insurtech is not a one-size-fits-all solution, and one of the main challenges that insurance companies face is adapting these services to their specific needs.
It means that there will be a certain amount of customisation and integration work required to get the most out of these services.
Despite this, companies should not be discouraged by the amount of work needed. Most Insurtech providers have experience integrating their solutions into existing insurtech ecosystems.
How Will You Manage Change When Implementing These Services?
There will be slight resistance to change when Insurtech solutions are implemented like any new initiative. It is expected, and companies need to have a plan to manage the change.
It includes communicating the changes to all stakeholders, setting up training and education programs, and establishing clear expectations on how you will use these new services.
Are There Any Risks Involved with Using These Services?
No matter how carefully companies plan, there is always some risk associated with implementing new technologies. It is especially true for Insurtech solutions, which can often be complex and impact company operations.
Insurtech companies need to be aware of these risks and have a plan to mitigate them.
It includes assessing the potential impacts of services on different business areas, establishing backup plans, and having a team ready to handle any issues that may arise.
Can These Services Be Integrated into Existing Systems?
While there are many advantages to using newer technologies, insurance companies’ main concern is integrating these services with their existing systems.
It is especially true if the company has already implemented solutions for marketing automation, digital experiences, or other related areas. Insurance companies should ask Insurtech providers about the extent of their integrations and check if their solutions can be fully integrated into existing systems.
How Will These Services Impact Business Operations?
Some Insurtech solutions can affect company processes in different departments, so it’s important to understand how they will impact daily workflows at the organisation.
It is especially true for solutions that require changes to how work is done. Insurance companies should ask the provider about the potential impacts of the service and identify areas where there could be disruptions.
What Are the Long-Term Costs Associated with Using These Services?
Using Insurtech services can come with various costs, which may not always be immediately apparent.
It includes licensing and subscription fees and the costs of integrating these services into existing systems. Insurance companies need to be aware of these costs and have a plan to manage them.
How Will You Measure the Success of These Services?
One of the main advantages of using Insurtech solutions is that they often provide data that you can use to measure the service’s success.
You can use this data to improve operations and make better decisions about using these services in the future. Insurance companies need to establish benchmarks and track the progress of these services over time to measure their effectiveness.
Insurance companies considering using Insurtech services should ask the above questions to help them make informed decisions about whether these solutions are a good fit for their business.
