This post is part of a series sponsored by AgentSync.
Nothing good comes easy, right? It turns out that overhauling your legacy technology in favor of more modern, cloud-native systems is no exception.
In today’s digital age, companies risk falling behind if they shy away from cloud-native technology. Flexibility, scalability, lower costs, and improved customer experience are just some of the benefits that cloud-native software can offer insurance companies and their consumers. But no matter how much positive impact cloud-native insurtech can have on an insurance company’s day-to-day operations, moving from legacy systems to modern solutions is rarely easy, and anyone looking to make the transition could face some obstacles along the way.
3 Barriers to Cloud-Native Insurance Technology Adoption
As with any major technology transformation (and especially in an industry as storied as insurance), many of the challenges of adopting cloud-native insurance technology arise from the organizational and cultural changes required for such a major transition. Simply put, change is difficult and one or more of the following areas could be slowing you down.
Your current systems
Replacing outdated systems that have been in use for years is much easier said than done. Some insurance organizations’ processes are so deeply rooted in existing technology that the transition would cause enough disruption to halt operations in the short term. If the impact on workflow and productivity required to overhaul their entire technology stack seems too high a hurdle, companies will continue to rely on outdated technology, spreadsheets and other manual processes in their daily operations.
Choosing to move only some systems to the cloud seems like a more viable option. However, this can create even greater challenges for companies as they struggle to integrate the new software into their existing platforms, which are likely not designed with smooth integrations in mind.
Your people
The move to cloud-native software is more than just a technological shift. It’s also a pretty significant cultural shift that can be difficult for individuals working in an industry that, until recently, has been relatively resistant to change. For many, current systems, no matter how inefficient, are so closely tied to daily operations that they have shaped company culture.
Getting users to adopt a new way of doing things may require a company-wide shift in thinking. And remember, in addition to helping your team understand the value of the transition, you also need to provide the support and training necessary to help users take full advantage of the new cloud-native technology.
Your budget
No matter how confident you are that cloud native software will positively impact your bottom line in the long run, overcoming the upfront costs of purchasing and implementing it can be a significant challenge. The fact is that while the initial costs may seem like too much of a hurdle to overcome, they are usually nothing compared to the costs of running a business normally.
Incurring technical debt not only ends up costing you more than you would spend modernizing your tech stack, it also wastes your employees’ time, exposes you to unnecessary compliance risks, and slows your company’s growth.
5 best practices for adopting cloud-native insurance technology
While the hurdles to adopting cloud-native technology in your insurance organization may be significant, they are not insurmountable. Here are some things business leaders can do to be successful.
1. Understand the problem you want to solve
There is a cloud-native solution for almost every aspect of an insurance organization’s day-to-day operations, from claims management to customer relationship management to email marketing and so on. But just because there is cloud-native software for each of these areas, that doesn’t necessarily mean a company needs to fully adopt it.
It is important that you understand the problem you are trying to solve before embarking on a new solution. What could be worse than investing all your time, money and resources into implementing a new solution, only for the bottlenecks and inefficiencies to remain after the dust settles?
Are you trying to reduce onboarding time for producers? Would you like to relieve your team of manual workflows? To improve the overall producer experience? Pinpointing the problem (or problems) you want to solve with cloud-native technology allows you to cut through the noise and focus only on evaluating the technology that can actually help you achieve your goals.
2. Compare what’s on the market
Not every cloud native application is the same. The right solution for your business depends on several factors, including your specific needs, budget, and preferred level of control. After identifying your key problems and setting future goals, compare this data to what each solution can provide.
Remember that product features are only one piece of the puzzle. You should also consider things like the level of partnership you have with each provider, their standards when it comes to data security, and how they handle software updates and bug fixes after implementation.
On a side note, if you happen to be looking for cloud-native producer management software, we’ve put together a handy buyer’s guide to help you with your evaluation.
3. Get references from current customers for possible solutions
It’s one thing to hear from technology providers themselves about the benefits of moving to cloud-native insurance technology, but what are insurance companies that have already made the switch saying? Look for testimonials from current customers of potential solutions who have tried to solve similar problems to the ones you are having now. Their success, not only with the product itself, but also with implementation and customer support, will give you a good idea of what you can actually expect from a particular solution.
If you are curious about the success AgentSync customers have had after implementing our solutions, we invite you to take a look at our case studies as well as 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. While some solutions prioritize security and compliance, others don’t quite live up to expectations. But in the data-driven world of insurance, protecting sensitive manufacturer and consumer information is critical.
A vendor’s response to industry standards like SOC 2 and NIST can give you a clearer picture of which software takes data security seriously and which may be putting your business at greater risk. These days, it’s not even worth considering vendors that demonstrate anything less than a commitment to cybersecurity excellence.
5. Create a plan for training, support and internal adoption
While moving to cloud-native solutions removes tedious, manual work from your team, updating your tech stack without providing the necessary employee training and support will likely have the opposite effect.
Employee training is a simple and effective way to show your team the full benefits of a new solution. Without training, people may be hesitant to use the new software, opting instead for the old, familiar way of doing things. That would be a huge waste of time for everyone.
If you want to achieve a high adoption rate, create a plan to ensure everyone has a thorough understanding of the solution’s value and access to training materials and support to address any knowledge gaps that might be holding them back.
Cloud-native software paves the way for insurance companies
With a growing number of insurers planning to adopt cloud-native solutions over the next five years, it’s safe to say that cloud-native technology will soon be the new gold standard for the insurance industry. The sooner a company migrates to a cloud-native technology stack, the sooner it will reap the benefits and the better prepared it will be for future innovation.
If you’re ready to make the switch and future-proof your production licensing and compliance management processes, AgentSync can help. Contact us today to learn how our cloud-native solution makes managing the entire producer lifecycle more efficient and cost-effective.
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InsurTech Tech
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2024-06-13 04:58:08
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