This put up is a part of a sequence sponsored by AgentSync.
Nothing good comes simple, proper? Seems, overhauling your outdated expertise in favor of extra fashionable, cloud-native methods is not any exception.
In at this time’s digital age, shying away from cloud-native expertise places companies susceptible to falling behind. Flexibility, scalability, diminished prices, and an enhanced buyer expertise are just a few of the advantages cloud-native software program can carry to insurance coverage companies and their shoppers. However, irrespective of how much positive impact cloud-native insurtech can have on an insurance organization’s daily operations, switching from legacy methods to fashionable options isn’t simple, and anybody making an attempt to make the transition may discover themselves working into just a few bumps alongside the best way.
3 obstacles to adopting cloud-native insurtech
As with all main technological overhaul (and particularly in an business as longstanding as insurance coverage), most of the challenges of adopting cloud-native insurance coverage expertise stem from the organizational and cultural modifications crucial for such a big transition. Put merely, change is tough, and a number of of the next areas may gradual you down.
Your present methods
Changing legacy methods which have been in place for years is far simpler mentioned than carried out. Some insurance coverage organizations’ processes are so closely rooted of their present expertise that making the transition would trigger sufficient disruption to close down operations within the brief time period. When the workflow and productiveness influence required to overtake their total tech stack looks like too excessive of a hurdle, companies will proceed to depend on outdated expertise, spreadsheets, and different handbook processes for every day operations.
Selecting to maneuver solely some methods to the cloud may appear to be a extra viable choice. However, doing so can depart companies with much more challenges as they battle to combine the brand new software program into their present platforms, which possible weren’t constructed with clean integrations in thoughts.
Your individuals
Switching to cloud-native software program is greater than only a technological change. It’s additionally a fairly important cultural change, and one that may be tough for people working in an business that, till not too long ago, has remained comparatively resistant to alter. For a lot of, the present methods, irrespective of how inefficient, are so intricately tied to every day operations that they’ve formed the corporate’s tradition.
Getting customers to undertake a brand new method of doing issues can require a company-wide shift in considering. And don’t neglect that, on high of serving to your workforce perceive the worth of the transition, you’ll want to supply the assist and coaching crucial for customers to reap the total advantages of the brand new cloud-native expertise.
Your price range
Irrespective of how sure you might be that cloud-native software program will positively influence your backside line in the long term, getting previous the upfront prices of buy and implementation could be a important problem. The actual fact of the matter is, whereas the preliminary value may appear to be too excessive a barrier to beat, it’s usually nothing in comparison with the price of enterprise as common.
Not solely does going into technical debt finally value you greater than what you’d spend modernizing your tech stack, it additionally wastes worker time, opens you as much as pointless compliance dangers, and stunts your group’s development.
5 finest practices for adopting cloud-native insurtech
Whereas the obstacles for adopting cloud-native expertise at your insurance coverage group could also be robust, they aren’t impenetrable. Right here are some things enterprise leaders can do to assist set themselves up for achievement.
1. Perceive the issue you’re making an attempt to unravel
There’s a cloud-native resolution on the market for nearly each side of an insurance coverage group’s every day operations, from claims administration, to buyer relationship administration, to e-mail advertising and marketing and so forth. However simply because cloud-native software program exists for every of those areas doesn’t essentially imply a enterprise must undertake all of it.
It’s essential you perceive the issue you are attempting to unravel earlier than diving into a brand new resolution. What may very well be worse than investing all of your time, cash, and assets into implementing a brand new resolution just for the bottlenecks and inefficiencies to persist after the mud settles?
Are you making an attempt to chop down on producer onboarding time? To take away handbook workflows out of your workforce’s plate? To enhance the general producer expertise? Nailing down the issue (or issues) you’d like to unravel with cloud-native expertise will provide help to lower by way of the noise and focus solely on evaluating expertise that may truly provide help to attain your objectives.
2. Evaluate what’s available on the market
Not each cloud-native software is identical. The precise resolution for your small business will rely on a number of components, together with your particular wants, price range, and most well-liked degree of management. After you’ve established your principal ache factors and set future objectives, evaluate that information in opposition to what every resolution can provide.
Bear in mind, product functionalities are only one piece of the puzzle. You also needs to take into account issues like the extent of partnership you’ll obtain with every vendor, their requirements round information safety, and the way they deal with software program updates and bug fixes after implementation.
Sidenote, when you simply so occur to be available in the market for a cloud-native producer administration software program, we’ve put collectively a helpful buyers guide to assist together with your evaluations.
3. Get references from present clients of potential options
It’s one factor to listen to about the advantages of switching to cloud-native insurtech from the tech distributors themselves, however what do insurance coverage companies who’ve already made the change must say? Search for references from present clients of potential options who have been making an attempt to unravel comparable ache factors as you are actually. Their success, not solely with the product itself but in addition with implementation and buyer assist provides you with a good suggestion of what you possibly can truly count on from any given resolution.
In case you’re curious in regards to the success AgentSync clients have had after implementing our options, we invite you to take a gander by way of our case studies in addition to our customer reviews on G2.
4. Prioritize safety and compliance credentials
Safety and compliance will be both a profit or a disadvantage of cloud-native software program. Whereas some options prioritize safety and compliance, others don’t fairly meet expectations. However within the data-driven world of insurance coverage, safeguarding delicate producer and client data is crucial.
A vendor’s response to business requirements like SOC 2 and NIST can provide you a clearer image of which softwares take information safety critically and which of them may open your group as much as extra danger. Today, it’s not even value contemplating distributors who reveal something lower than a dedication to cybersecurity excellence.
5. Make a plan for coaching, assist, and inside adoption
Whereas a giant draw of switching to cloud-native options is taking tedious, handbook work off your workforce’s plate, updating your tech stack with out providing the mandatory worker coaching and assist will possible have the alternative impact.
Worker coaching is a straightforward and efficient technique to allow your workforce to see the total benefits of a brand new resolution. With out coaching, you could discover individuals hesitant to make use of the brand new software program, preferring as an alternative to simply revert again to the previous, acquainted method of doing issues. Which might be a critical waste of time for everybody.
If you need a excessive adoption fee, make a plan for making certain everybody has a high-level understanding of the worth the answer gives and entry to coaching supplies and assist to fill in any data gaps that might maintain them again.
Cloud-native software program is paving the best way for insurance coverage organizations
With a growing number of insurers planning to adopt cloud-native solutions over the next five years, it’s secure to say cloud-native expertise is quickly to be the brand new gold commonplace for the insurance coverage business. The earlier a company migrates to a cloud-native tech stack, the earlier it reaps the advantages and the higher ready it’ll be for future innovation.
In case you’re able to make the swap and future-proof your producer licensing and compliance administration processes, AgentSync may help. Reach out today to find out how our cloud-native resolution makes managing the whole producer lifecycle extra environment friendly and cost-effective.
