This post is part of a series sponsored by AgentSync.
Nothing good ever comes easily, right? Turns out, overhauling outdated technology in favor of more modern, cloud-native systems is no exception.
In today’s digital age, shying away from cloud-native technology means companies risk being left behind. Flexibility, scalability, cost savings and improved customer experience are just some of the benefits that cloud-native software can bring to the insurance industry and its customers. How cloud-native insurtech can positively impact the day-to-day operations of insurance companiesSwitching from a legacy system to a modern solution is never easy, and those attempting the migration are likely to encounter some issues along the way.
Three barriers to cloud-native insurtech adoption
As with any large-scale technology transformation, especially in an industry as long established as insurance, many of the challenges in adopting cloud-native insurance technology stem from the organizational and cultural changes required for such a large-scale transition. Simply put, change is hard, and one or more of the following areas can slow progress:
Current System
Replacing legacy systems that have been in place for years is easier said than done. For some insurers, implementing processes that are deeply ingrained in existing technology can quickly become disruptive enough to stop them from doing their jobs. Companies find the workflow and productivity impacts required to modernize their entire technology stack too high a hurdle, leading them to continue relying on outdated technology, spreadsheets, and other manual processes for day-to-day operations.
Select Move Only Several Moving systems to the cloud may seem like a more viable option, but then companies may face even more challenges as they struggle to integrate new software into existing platforms that likely weren’t built with smooth integration in mind.
Your People
Switching to cloud-native software is not just a technical change. It’s also a fairly significant cultural shift that can be difficult for people who work in industries that have been relatively resistant to change until recently. For many companies, their current systems, no matter how inefficient, are so intertwined with their day-to-day operations that they have shaped the company’s culture.
Getting users to adopt new ways of doing things requires a mindset change across your company. And remember, you need to not only help your teams understand the value of the migration, but also provide users with the support and training they need to get the most out of your new cloud-native technologies.
Your budget
Even if you’re convinced that cloud-native software will have a positive impact on your bottom line in the long run, getting over the initial cost of purchase and implementation can be a big challenge. In fact, while the initial costs may seem like too high a barrier to overcome, they’re usually nothing compared to the costs of running a business as usual.
Not just entering Technical Debt Ultimately, it will cost you more than you would have spent modernizing your technology stack, waste your employees’ time, expose you to unnecessary compliance risks, and stunt your organization’s growth.
5 Best Practices for Adopting Cloud-Native InsurTech
The barriers to insurers adopting cloud-native technologies may be strong, but they’re not insurmountable. Here are some steps business leaders can take to set themselves up for success.
1. Understand the problem you’re trying to solve
Cloud-native solutions exist for nearly every aspect of an insurance organization’s day-to-day operations: claims management, customer relationship management, email marketing, etc. However, just because cloud-native software exists in each of these areas doesn’t necessarily mean that a company should adopt all of it.
Before embarking on a new solution, it’s important to understand the problem you’re trying to solve. There’s nothing worse than spending all your time, money, and resources implementing a new solution only to have bottlenecks and inefficiencies remain after the problem is solved.
Do you want to speed up onboarding time for your producers? Do you want to remove manual workflows from your team’s burden? Do you want to improve the overall experience for your producers? Defining the problem (or problems) you want to solve with cloud-native technology will help you cut out the noise and focus only on evaluating technologies that will actually help you achieve your goals.
2. Compare what’s on the market
Not all cloud-native applications are the same. The right solution for your business depends on several factors, including your specific needs, budget, and the level of control you want. After you’ve identified your key pain points and set your future goals, compare that data with what each solution can offer.
Remember that product features are only one piece of the puzzle: You also need to consider the level of partnership with each vendor, their standards around data security, and how they handle software updates and bug fixes once implemented.
As a side note, if you are looking for cloud-native producer management software, you might want to check out Buyer’s Guide It helps with evaluation.
3. Get referrals from current customers about potential solutions
Hear from the technology vendors themselves about the benefits of switching to cloud-native insurtech, but also what insurers who have already made the switch have to say. Look for references from current customers of potential solutions who were trying to solve similar pain points as you. Success with not only the product itself, but also implementation and customer support will give you a good idea of what you can actually expect from a particular solution.
If you are interested in learning more about the success AgentSync customers have had with our solution, please visit our Case Study our G2 Customer Reviews.
4. Prioritize security and compliance credentials
Security and compliance can be both an advantage and a disadvantage of cloud-native software. Some solutions prioritize security and compliance while others fall short. But in a data-driven insurance world, protecting sensitive producer and consumer information is essential.
Vendor Response to Industry Standards Society 2 and NIST You’ll get a clear picture of which software takes data security seriously and which may pose additional risk to your organization. Nowadays, vendors with no commitment to cybersecurity excellence aren’t even worth considering.
5. Plan for training, support, and internal adoption
A big attraction of switching to a cloud-native solution is the ability to relieve your team of tedious manual tasks, but updating your technology stack without providing the necessary employee training and support can have the opposite effect.
Employee training is a simple and effective way to ensure your team fully understands the benefits of a new solution. Without training, employees may be hesitant to use the new software and prefer to revert to their old, familiar ways – a waste of time for everyone.
If you want high adoption rates, make sure you have a plan to ensure everyone fully understands the value your solution provides and has access to training materials and support to fill in any knowledge gaps that may hinder uptake.
Cloud-native software paves the way for insurance organizations
Together More insurers plan to adopt cloud-native solutions over the next five yearsIt’s no exaggeration to say that cloud-native technology will soon become the new gold standard in insurance. The sooner organizations move to a cloud-native technology stack, the sooner they can realize the benefits and the better prepared they will be for future innovation.
If you’re ready to make the switch and future-proof your producer licensing and compliance management processes, AgentSync can help. Contact us today Learn how our cloud-native solutions enable you to manage the entire producer lifecycle more efficiently and cost-effectively.
topic
Insurtech
Technology
