This put up is a part of a collection sponsored by AgentSync.
Insurance coverage compliance is critical enterprise. Falling out of compliance can have actual penalties for everybody from insurance coverage companies, carriers, MGAs, and MGUs, to particular person producers, adjusters, and dually licensed broker-dealers.
Whom you select to associate with on your compliance wants issues. Selecting the best expertise associate can remodel your insurance coverage licensing compliance practices from a nightmare right into a dream-come-true.
Selecting the mistaken associate, however, can result in undesirable outcomes, equivalent to:
- Spending an excessive amount of cash on one thing that’s not assembly your wants
- Risking compliance and knowledge safety mishaps
- Failing to realize organization-wide adoption and the continued use of handbook and error-prone processes
- Shedding workers and distribution channel companions due to how irritating it’s to work for – or with – you
Whereas the business urges insurance coverage companies to undertake extra fashionable practices, many insurance coverage compliance expertise distributors nonetheless haven’t any qualms doing enterprise the way in which they’ve at all times executed it. Usually, this consists of committing some critical “crimes” in opposition to their very own clients. No, we’re not speaking concerning the sorts of crimes that land anybody in jail, however these transgressions are irritating, pricey, and simply plain mistaken nonetheless.
On this three-part collection, we’ll cowl among the commonest “crimes” we see insurance coverage compliance tech distributors committing in opposition to their buyer base. We’ve already lined crimes of the monetary selection in addition to assist crimes. On this third and remaining installment, we’re looking at expertise crimes. When you’ve fallen sufferer to any of those tech-related crimes, then we’re sorry to say it, however the vendor you’ve invested your cash and sources in is a complete dud.
When insurance coverage compliance distributors commit expertise crimes
You may be capable of forgive the crimes that value your corporation extra money and even those that create friction in your consumer expertise, but when the expertise itself doesn’t work, then what are you actually getting out of your compliance tech spend? Investing your time, vitality, and cash into an answer that doesn’t pay dividends is extra than simply irritating. It may possibly negatively impression each side of your corporation, out of your knowledge safety and fame to your skill to scale and develop sooner or later.
Set your self up for long-term success by avoiding these generally perpetrated expertise crimes:
1. Soiled and off knowledge
Making good enterprise selections depends closely in your entry to good knowledge. The standard of your knowledge is on the core of whether or not your compliance administration resolution is benefiting you or simply costing you. Whether or not it’s as a result of technical errors that permit lacking or inaccurate knowledge into your system, or intermittent syncs together with your knowledge supply, inaccurate producer and adjuster licensing and appointment knowledge will trigger issues for each a part of your corporation.
Insurance coverage compliance requirements and laws are continually altering and updating. If the answer you sought particularly that will help you sustain with this stuff isn’t offering you with correct and full knowledge, you may as properly nonetheless be managing issues by hand. Whereas most compliance instruments available on the market as of late sync to the business’s one supply of reality for producer data, keep in mind that not all syncs are created equal. Think about how usually the sync happens, the standard of the information obtained, and the way discrepancies are dealt with.
Buyer confession: “We’re discovering that our present resolution’s PDB sync isn’t occurring. There’s this fixed defect they appear to be combating and the data obtainable via the product doesn’t appear correct.”
2. Nonetheless requiring spreadsheets
Some insurance coverage companies put up with expertise crimes like dangerous or stale knowledge and compensate for them by protecting inner spreadsheets to double-check the information that’s of their system. That is fairly probably the most important expertise crime of all of them!
You doubtless went searching for a compliance vendor within the first place since you wished to switch your spreadsheets with a extra fashionable tech resolution. So why accept a “resolution” that primarily places you again at sq. one? No group ought to pay for expertise so unreliable that workers have to preserve their very own data and constantly cross-reference for accuracy. Discuss defeating the entire goal of digitization.
Buyer confession: “We ceaselessly want copies of licenses. I can’t get that from the product, so I’m retaining copies of licenses in one other system.”
3. Previous, siloed tech
Your tech stack ought to create efficiencies that assist modernize your corporation, not make your workflows clunkier. Fashionable insurance coverage infrastructure means being adaptive and making fixed enhancements to your compliance ecosystem. Any resolution that stops bettering the second the contract is signed ought to increase an instantaneous crimson flag.
Options constructed on mainframe code don’t supply the identical flexibility as those who leverage a cloud-native structure. They’re usually tougher (and even not possible) to combine with the opposite software program you utilize for each day enterprise operations and may trigger main downtime and value inefficiencies whenever you’re able to scale your corporation.
4. Processing dangerous transactions
Some producer license administration applied sciences have in-built checks and balances to cease an invalid transaction earlier than it occurs. Others… don’t. Incomplete producer functions or license renewal kinds can lead to the state canceling the appliance, however nonetheless protecting the related charges. With out a system that may flag a probably dangerous transaction, you’re left with the danger of processing and paying for transactions that wanted additional human intervention earlier than going via.
On the very least, your compliance tech ought to provide the choice to construct warnings, alerts, and “laborious stops” into your workflows to maintain transactions from being processed when a producer doesn’t meet sure standards. The best compliance administration resolution will save your corporation cash in the long term, not add further (and utterly avoidable) bills to your backside line.
Buyer confession: “The notifications in our present resolution are fairly lackluster, and we’re billed per transaction. Typically we find yourself paying for a similar transaction a number of instances although it solely went via as soon as.”
5. Exposes you to increased safety dangers
The information-driven nature of the insurance coverage enterprise means business gamers have extra cybersecurity issues than most. The success of your group’s knowledge safety relies on the safety and preparedness of any third-party distributors or software program you utilize. When you’ve taken the required steps to make sure your personal cyber hygiene, don’t let your compliance expertise vendor take you down with their very own lax safety practices.
By vetting compliance expertise distributors for his or her cybersecurity practices, you possibly can scale back the danger of an information breach and defend your fame. If a vendor isn’t up-to-date on their cybersecurity necessities, they’re placing you in danger, and that’s simply not the recipe for a great partnership.
Keep away from falling sufferer to expertise crimes out of your compliance vendor
When you’re at the moment working with an insurance coverage compliance expertise that isn’t treating you the way in which you deserve – in these methods or others! – see how AgentSync is completely different. AgentSync’s dedicated to the concept of Buyer Love. This implies truthful and clear pricing, assist that’s truly supportive, and a tech platform that delights its customers and receives common updates and enhancements.
See how completely different insurance coverage compliance could possibly be at your group; take a look at an AgentSync demo right this moment.
