This put up is a part of a sequence 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 to your compliance wants issues. Selecting the best know-how associate can rework your insurance coverage licensing compliance practices from a nightmare right into a dream-come-true.
Selecting the incorrect 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 attain organization-wide adoption and the continued use of guide and error-prone processes
- Dropping 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 trendy practices, many insurance coverage compliance know-how distributors nonetheless haven’t any qualms doing enterprise the way in which they’ve all the time accomplished it. Usually, this contains committing some critical “crimes” in opposition to their very own prospects. No, we’re not speaking in regards to the sorts of crimes that land anybody in jail, however these transgressions are irritating, pricey, and simply plain incorrect nonetheless.
On this three-part sequence, we’ll cowl among the most typical “crimes” we see insurance coverage compliance tech distributors committing in opposition to their buyer base. We’ve already coated crimes of the monetary selection in addition to assist crimes. On this third and ultimate installment, we’re having a look at know-how 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 assets in is a complete dud.
When insurance coverage compliance distributors commit know-how crimes
You may be capable of forgive the crimes that price what you are promoting more cash and even those that create friction in your consumer expertise, but when the know-how itself doesn’t work, then what are you actually getting out of your compliance tech spend? Investing your time, power, and cash into an answer that doesn’t pay dividends is extra than simply irritating. It might negatively affect each facet of what you are promoting, out of your knowledge safety and popularity to your capability to scale and develop sooner or later.
Set your self up for long-term success by avoiding these generally perpetrated know-how crimes:
1. Soiled and off knowledge
Making good enterprise choices 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 because 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 what you are promoting.
Insurance coverage compliance requirements and laws are consistently altering and updating. If the answer you sought particularly that can assist you sustain with these items isn’t offering you with correct and full knowledge, you may as properly nonetheless be managing issues by hand. Whereas most compliance instruments in the marketplace as of late sync to the business’s one supply of fact for producer data, keep in mind that not all syncs are created equal. Contemplate how typically the sync happens, the standard of the information acquired, 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 preventing and the knowledge obtainable by the product doesn’t appear correct.”
2. Nonetheless requiring spreadsheets
Some insurance coverage companies put up with know-how crimes like dangerous or stale knowledge and compensate for them by conserving inside spreadsheets to double-check the information that’s of their system. That is fairly presumably the largest know-how crime of all of them!
You possible went searching for a compliance vendor within the first place since you needed to interchange your spreadsheets with a extra trendy tech resolution. So why accept a “resolution” that primarily places you again at sq. one? No group ought to pay for know-how so unreliable that workers have to maintain their very own data and repeatedly cross-reference for accuracy. Speak about defeating the entire function of digitization.
Buyer confession: “We continuously 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 what you are promoting, 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 a right away pink flag.
Options constructed on mainframe code don’t supply the identical flexibility as people who leverage a cloud-native structure. They’re usually tougher (and even inconceivable) to combine with the opposite software program you employ for day by day enterprise operations and may trigger main downtime and price inefficiencies if you’re able to scale what you are promoting.
4. Processing dangerous transactions
Some producer license administration applied sciences have inbuilt checks and balances to cease an invalid transaction earlier than it occurs. Others… don’t. Incomplete producer purposes or license renewal kinds can lead to the state canceling the appliance, however nonetheless conserving the related charges. With no system that may flag a doubtlessly dangerous transaction, you’re left with the chance of processing and paying for transactions that wanted additional human intervention earlier than going by.
On the very least, your compliance tech ought to provide the choice to construct warnings, alerts, and “exhausting stops” into your workflows to maintain transactions from being processed when a producer doesn’t meet sure standards. The suitable compliance administration resolution will save what you are promoting 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. Generally we find yourself paying for a similar transaction a number of instances regardless that it solely went by as soon as.”
5. Exposes you to increased safety dangers
The info-driven nature of the insurance coverage enterprise means business gamers have extra cybersecurity considerations than most. The success of your group’s knowledge safety depends upon the safety and preparedness of any third-party distributors or software program you employ. When you’ve taken the mandatory steps to make sure your personal cyber hygiene, don’t let your compliance know-how vendor take you down with their very own lax safety practices.
By vetting compliance know-how distributors for his or her cybersecurity practices, you’ll be able to cut back the chance of a knowledge breach and shield your popularity. 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 superb partnership.
Keep away from falling sufferer to know-how crimes out of your compliance vendor
When you’re presently working with an insurance coverage compliance know-how 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 thought of Buyer Love. This implies honest and clear pricing, assist that’s really 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; try an AgentSync demo at the moment.