This submit is a part of a sequence sponsored by AgentSync.
Digital transformation is taking the insurance coverage trade by storm as extra companies, carriers, and MGA/MGUs replace their handbook processes in favor of recent, 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 assets implementing an answer just for it to fail to supply worth.
The suitable tech associate will help you and contribute to your success all through each stage of your corporation. The incorrect associate will value you greater than they’re value and depart you feeling extra like a transaction than a real associate. Overhauling legacy expertise (or changing your present not-so-perfect resolution) can positively influence each side of your corporation, however the course of isn’t a simple one. To discover a associate 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 match distributors earlier than deciding which one to associate 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 will help you identify which vendor is best for you.
Whereas conducting an RFP will be overwhelming, there are some issues you are able to do to set your self up for fulfillment and be sure to’re getting the knowledge it’s essential to make the appropriate determination.
To make the method as clean as doable and keep away from having to repeat it once more within the close to future, know these 5 frequent boundaries to profitable RFPs and tips on how to 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 very important step find your long-term compliance associate. Companies might go into the RFP course of already figuring out one or two distributors they need to take into account, however neglecting to do any additional analysis can restrict your probabilities of discovering the most effective associate for your corporation. The folks in control of selecting who makes the shortlist might have bias towards a selected resolution, however that doesn’t imply they need to neglect some other choices.
On the flipside, inviting each potential vendor available in the market to take part in your RFP isn’t a good suggestion, both. The extra RFPs you ship, the much less time you must correctly consider every response. It will be an enormous waste of everybody’s time to ship an RFP to each single vendor available in the market.
Conducting adequate market analysis will help you discover the three to 5 distributors which might be almost definitely to fulfill your distinctive enterprise wants. Researching which of them you’d like to ask to the method reduces the trouble required downstream and will increase the percentages of receiving high quality responses.
2. Asking the incorrect questions
Uncovering the true worth of an answer isn’t doable if you happen to’re not asking the appropriate questions. Tech distributors aren’t thoughts readers. If you happen to’re on the lookout for particular info, it’s essential to ensure that the questions you ask are detailed sufficient to uncover the knowledge you need.
For instance, in relation to pricing questions, you don’t need to simply ask how a lot an answer prices. As a substitute, ask in regards to the resolution’s whole value of possession. That approach, distributors received’t be as more likely to omit any extra charges they cost for issues like knowledge pulls or customized stories and also you received’t be in for a shock if you obtain your first bill. For extra particular examples of questions you ought to be asking in your insurance coverage compliance vendor RFP, take a look at our free trade 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 individual inside discussions and market analysis, divide your RFP into totally different sections, every with its personal subset of questions. Sections may embody:
- Pricing
- Normal 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 supply a major quantity of element with out overwhelming you with info. Together with a number 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 must 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 info
Whether or not intentional or not, vendor responses comprise 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 really ship on these guarantees when you’ve signed a contract?
You may complement the knowledge you obtain from a vendor with info from third-party sources. This might embody reaching out to folks in your community who’ve expertise working with a vendor, studying evaluations on widespread software program assessment web sites like G2, studying by buyer case research, and asking the seller to give 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 depart 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 typically 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 assets, in addition to your individual. In fact it’s OK to assume you already know who you need to associate 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 positive was the most effective match can’t really provide the extent of reporting that you simply’re on the lookout for, or that its producer knowledge is absolutely solely correct about half of the time.
Compliance is mission-critical for insurance coverage carriers and companies
Compliance is a crucial a part of any insurance coverage group’s operations and selecting who to associate with is a call that shouldn’t be taken calmly. Whether or not you’re prepared to begin 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 fulfillment by avoiding these frequent pitfalls.
For extra particular assist and pattern questions, obtain our information at this time.
And if you happen to haven’t already, take into account including AgentSync to your listing 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 crew of consultants is devoted to offering glorious customer support from analysis to implementation and past. To study extra, view our demo at this time.
