This put up is a part of a sequence sponsored by AgentSync.
Digital transformation is taking the insurance coverage business by storm as extra businesses, carriers, and MGA/MGUs replace their guide processes in favor of contemporary, automated options. On the subject of a expertise revamp, who an insurance coverage group companions with issues. The very last thing enterprise leaders need is to spend a major period of time, cash, and sources implementing an answer just for it to fail to offer worth.
The fitting tech accomplice will help you and contribute to your success all through each stage of your enterprise. The mistaken accomplice will value you greater than they’re value and go away you feeling extra like a transaction than a real accomplice. Overhauling legacy expertise (or changing your present not-so-perfect resolution) can positively impression each side of your enterprise, however the course of isn’t a simple one. To discover a accomplice that’ll really energy your progress, begin by nailing down your RFP course of.
Conducting an insurance coverage compliance vendor RFP
An RFP, or request for proposal, is a technique generally utilized by companies to check distributors earlier than deciding which one to accomplice with. The method includes sending inquiries to a shortlist of potential distributors to get extra element into their resolution and the way it can (or can’t) deal with a company’s ache factors. Not all compliance options are the identical, so an efficient RFP may also help you identify which vendor is best for you.
Whereas conducting an RFP could be overwhelming, there are some issues you are able to do to set your self up for achievement and be sure to’re getting the knowledge you want to make the correct resolution.
To make the method as easy as doable and keep away from having to repeat it once more within the close to future, know these 5 widespread limitations to profitable RFPs and how you can overcome them:
1. Conducting inadequate market analysis
Typically, corporations will start their procurement course of by making a shortlist of distributors to ship an RFP to. This shortlist ought to embody the highest three to 5 distributors most aligned along with your compliance administration wants.
Figuring out who makes the shortlist is the primary important step to find your long-term compliance accomplice. Companies could go into the RFP course of already understanding one or two distributors they need to think about, however neglecting to do any additional analysis can restrict your probabilities of discovering one of the best accomplice for your enterprise. The folks answerable for selecting who makes the shortlist could have bias towards a specific resolution, however that doesn’t imply they need to neglect every other choices.
On the flipside, inviting each potential vendor out there to take part in your RFP isn’t a good suggestion, both. The extra RFPs you ship, the much less time you need to correctly consider every response. It might be an enormous waste of everybody’s time to ship an RFP to each single vendor out there.
Conducting ample market analysis may also help you discover the three to 5 distributors which are more than likely to fulfill your distinctive enterprise wants. Researching which of them you’d like to ask to the method reduces the hassle required downstream and will increase the percentages of receiving high quality responses.
2. Asking the mistaken questions
Uncovering the true worth of an answer isn’t doable when you’re not asking the correct questions. Tech distributors aren’t thoughts readers. In case you’re in search of particular data, you want to make certain the questions you ask are detailed sufficient to uncover the knowledge you need.
For instance, on the subject of pricing questions, you don’t need to simply ask how a lot an answer prices. As a substitute, ask concerning the resolution’s whole value of possession. That approach, distributors gained’t be as more likely to omit any further charges they cost for issues like knowledge pulls or customized reviews and also you gained’t be in for a shock if you obtain your first bill. For extra particular examples of questions you have to be asking in your insurance coverage compliance vendor RFP, take a look at our free business useful resource: 10 Questions NOT to Ask in Your Insurance coverage Compliance Vendor RFP (And What to Ask As a substitute).
Utilizing the knowledge you’ve gathered from your personal inside discussions and market analysis, divide your RFP into totally different sections, every with its personal subset of questions. Sections may embody:
- Pricing
- Common enterprise questions
- Product performance
- Safety
- Aggressive knowledge
- Buyer help
In every part, ask a mixture of closed- and open-ended questions to permit distributors to offer a major quantity of element with out overwhelming you with data. Together with a couple of easy sure/no questions in every part lets you extra simply rating responses.
3. Asking too many questions
Simply as you don’t need to spend time evaluating too many distributors, you additionally don’t need to ask too many questions in your RFP. Keep in mind, the extra questions you ask, the extra responses you’ll have to dig by. Whereas it may be tempting to ask as many questions as doable proper off the bat, your RFP needs to be reserved for extra high-value queries.
You’ll all the time have an opportunity to dig into the main points afterward within the vendor choice course of. For instance, the demo stage of an analysis could also be a greater time to ask extra detailed and particular questions on an answer’s options and performance.
4. Relying solely on vendor-supplied data
Whether or not intentional or not, vendor responses include a sure stage of bias. It’s straightforward to get caught up in all the guarantees a vendor makes, however how will you know in the event that they’ll truly ship on these guarantees when you’ve signed a contract?
You may complement the knowledge you obtain from a vendor with data from third-party sources. This might embody reaching out to folks in your community who’ve expertise working with a vendor, studying evaluations on fashionable software program evaluation web sites like G2, studying by buyer case research, and asking the seller to offer you buyer references.
Neglecting to do any exterior analysis and solely counting on what a vendor is telling you about their product and repair may go away you with a skewed notion of the true worth of an answer.
5. You already made your choice and are simply going by the method
We talked about earlier that some companies go into an RFP with two to 3 distributors in thoughts already, however generally it goes a step additional. Organizations that go into an RFP course of with their thoughts already made up about who they’re going to decide on are doing themselves and the distributors they’re evaluating a disservice.
Not taking the RFP course of severely wastes distributors’ time, cash, and sources, in addition to your personal. In fact it’s OK to assume you realize who you need to accomplice with, however that doesn’t imply you shouldn’t go into the RFP course of with an open thoughts. You would possibly uncover that the answer you have been certain was one of the best match can’t truly supply the extent of reporting that you just’re in search of, or that its producer knowledge is admittedly solely correct about half of the time.
Compliance is mission-critical for insurance coverage carriers and businesses
Compliance is a crucial a part of any insurance coverage group’s operations and selecting who to accomplice with is a choice that shouldn’t be taken calmly. Whether or not you’re prepared to start out the choice course of for the primary time, otherwise you’re sad along with your present vendor and able to consider potential replacements, conducting an RFP is in your future, so set your self up for achievement by avoiding these widespread pitfalls.
For extra particular assist and pattern questions, obtain our information at this time.
And when you haven’t already, think about including AgentSync to your record of potential compliance expertise distributors. We equip insurance coverage organizations throughout the nation with seamless, automated options for his or her distinctive compliance wants. Plus, our staff of specialists is devoted to offering wonderful customer support from analysis to implementation and past. To study extra, view our demo at this time.
