This post is part of a series sponsored by AgentSync.
Digital transformation is sweeping the insurance industry as more agents, insurers, and MGAs/MGUs update manual processes in favor of modern automated solutions. When it comes to technology innovation, who insurers partner with matters. The last thing business leaders want is to spend a lot of time, money, and resources implementing a solution that doesn’t deliver value.
The right technology partner will support you and contribute to your success at every stage of your business. Picking the wrong partner can cost you more than it’s worth and end up feeling more like a transaction than a real partner. Overhauling legacy technology (or replacing current less-than-perfect solutions) You can positively impact every aspect of your business. However, the process is not easy. Finding a partner who can truly help your company grow starts with clarity in your RFP process.
Insurance compliance vendor RFP implementation
An RFP (Request for Proposal) is a commonly used method for companies to compare vendors before deciding which one to work with. This process involves submitting questions to a shortlist of potential vendors to learn more about their solution and how it can (or cannot) address your organization’s pain points. . Not all compliance solutions are the same, so an effective RFP can help you determine which vendor is right for your company.
Running an RFP can be overwhelming, but there are things you can do to set yourself up for success and ensure you have the information you need to make the right decision.
To make the process as smooth as possible and avoid having to repeat it in the near future, know these five common barriers to a successful RFP and how to overcome them.
1. Insufficient market research
Companies often begin the procurement process by shortlisting vendors to send out an RFP. This shortlist should include the top three to five vendors that best fit your compliance management needs.
Determining who will be shortlisted is an important first step in finding a long-term compliance partner. Businesses may enter the RFP process knowing one or two vendors they want to consider, but failing to do further research can limit their chances of finding the right partner for their business. There is. Those responsible for selecting shortlisters may be biased against certain solutions, but that doesn’t mean they should ignore considering other options.
On the contrary, inviting every It’s also never a good idea for potential vendors in the market to participate in your RFP. The more RFPs you send, the less time you need to properly evaluate each response. Sending an RFP to every vendor in the market is a huge waste of time.
With enough market research, you can find the three to five vendors most likely to meet your unique business needs. Researching which users you want to invite into the process reduces the effort required downstream and increases the likelihood of receiving quality responses.
2. Asking the wrong questions
If you aren’t asking the right questions, you won’t be able to uncover the true value of your solution. Technology vendors are not mind readers. If you are looking for specific information, you should ask questions that are detailed enough to reveal the information you want.
For example, when it comes to pricing questions, you don’t want to just ask for the cost of the solution. Instead, ask about the total cost of ownership of the solution. That way, you’re less likely to exclude additional fees that the vendor charges for data retrieval, custom reports, etc., and there are no surprises when you get your first bill. For specific examples of questions to ask in an insurance compliance vendor RFP, check out our free industry resource, 10 Questions You Should Never Ask in an Insurance Compliance Vendor RFP (What You Should Ask Instead).
Using information gleaned from internal discussions and market research, divide your RFP into different sections, each with its own subset of questions. Sections include:
- Pricing
- common business questions
- Product features
- safety
- competitive data
- customer support
Each section asks a mix of closed and open-ended questions to allow the vendor to provide a fair amount of detail without overwhelming them with information. Including a few simple yes/no questions in each section will make it easier to grade your answers.
3. Too many questions
Just like you don’t want to spend time evaluating too many vendors, you don’t want to ask too many questions in your RFP. Remember, the more questions you ask, the more answers you need to dig into. While it may be tempting to ask as many questions as possible right away, you should reserve your RFP for higher-value questions.
There’s always an opportunity to dig into the details later in the vendor selection process. For example, the demo phase of the evaluation may be a good time to ask more detailed and specific questions about the features and functionality of the solution.
4. Rely solely on vendor-provided information
Vendor responses contain some level of bias, whether intentional or not. It’s easy to get caught up in a vendor’s promises, but once you sign a contract, how do you know if the vendor will actually deliver on those promises?
You can supplement the information you receive from vendors with information from third-party sources. This can include reaching out to people in your network who have experience working with the vendor, reading reviews on popular software review websites such as G2, reading customer stories, and providing customer references to the vendor. This includes requesting.
Relying solely on what vendors say about their products and services without doing any external research can leave you with a false sense of the true value of your solution.
5. You have already made your choice and are moving forward with the process
We mentioned earlier that some companies already write their RFPs with two or three vendors in mind, but sometimes they go a step further. Organizations that go into the RFP process without already knowing who they will select are doing themselves and the vendors they are evaluating a disservice.
If you don’t take the RFP process seriously, you’re wasting your vendor’s time, money, and resources, as well as your own. Of course it’s okay think You know who you want to partner with, but that doesn’t mean you shouldn’t go into the RFP process with an open mind. You might discover that the solution you thought was the best solution doesn’t actually provide the level of reporting you’re looking for, or that its producer data is actually only about half as accurate.
Compliance is extremely important for insurance companies and insurance agents
Compliance is an important part of running an insurance organization, and partner selection should not be taken lightly. Whether you’re ready to begin the selection process for the first time, or you’re dissatisfied with your current vendor and ready to evaluate alternatives, conducting an RFP is in the future, so these common pitfalls Avoid this and set yourself up for success. .
For more specific help and sample questions, download the guide now.
If you haven’t already, consider adding AgentSync to your list of potential compliance technology vendors. We provide insurance organizations across the country with seamless, automated solutions for their unique compliance needs. Additionally, our team of experts is dedicated to providing excellent customer service, from evaluation to implementation and beyond. To learn more, Watch the demo now.
