3 Obstacles to Adopting Cloud-Native Insurtech and 5 Finest Practices to Ease the Transition

This submit is a part of a sequence sponsored by AgentSync.

Nothing good comes simple, proper? Seems, overhauling your outdated expertise in favor of extra fashionable, cloud-native programs isn’t any exception.

In immediately’s digital age, shying away from cloud-native expertise places companies susceptible to falling behind. Flexibility, scalability, lowered prices, and an enhanced buyer expertise are only some of the advantages cloud-native software program can carry to insurance coverage companies and their shoppers. However, regardless of how a lot optimistic influence cloud-native insurtech can have on an insurance coverage group’s each day operations, switching from legacy programs to fashionable options isn’t simple, and anybody making an attempt to make the transition may discover themselves operating into just a few bumps alongside the best way.

3 obstacles to adopting cloud-native insurtech

As with all main technological overhaul (and particularly in an business as longstanding as insurance coverage), most of the challenges of adopting cloud-native insurance coverage expertise stem from the organizational and cultural modifications vital for such a big transition. Put merely, change is difficult, and a number of of the next areas may sluggish you down.

Your present programs

Changing legacy programs which have been in place for years is far simpler stated than finished. Some insurance coverage organizations’ processes are so closely rooted of their present expertise that making the transition would trigger sufficient disruption to close down operations within the quick time period. When the workflow and productiveness influence required to overtake their whole tech stack looks like too excessive of a hurdle, companies will proceed to depend on outdated expertise, spreadsheets, and different handbook processes for each day operations.

Selecting to maneuver solely some programs to the cloud may seem to be a extra viable choice. However, doing so can depart companies with much more challenges as they battle to combine the brand new software program into their present platforms, which doubtless weren’t constructed with clean integrations in thoughts.

Your folks

Switching to cloud-native software program is greater than only a technological change. It’s additionally a reasonably important cultural change, and one that may be tough for people working in an business that, till just lately, has remained comparatively resistant to vary. For a lot of, the present programs, regardless of how inefficient, are so intricately tied to each day operations that they’ve formed the corporate’s tradition.

Getting customers to undertake a brand new method of doing issues can require a company-wide shift in considering. And don’t neglect that, on prime of serving to your group perceive the worth of the transition, you’ll want to offer the assist and coaching vital for customers to reap the complete advantages of the brand new cloud-native expertise.

Your funds

Regardless of how sure you might be that cloud-native software program will positively influence your backside line in the long term, getting previous the upfront prices of buy and implementation generally is a important problem. The actual fact of the matter is, whereas the preliminary value may seem to be too excessive a barrier to beat, it’s sometimes nothing in comparison with the price of enterprise as traditional.

Not solely does going into technical debt finally value you greater than what you’d spend modernizing your tech stack, it additionally wastes worker time, opens you as much as pointless compliance dangers, and stunts your group’s progress.

5 greatest practices for adopting cloud-native insurtech

Whereas the obstacles for adopting cloud-native expertise at your insurance coverage group could also be sturdy, they aren’t impenetrable. Right here are some things enterprise leaders can do to assist set themselves up for fulfillment.

1. Perceive the issue you’re making an attempt to resolve

There’s a cloud-native answer on the market for almost each side of an insurance coverage group’s each day operations, from claims administration, to buyer relationship administration, to e mail advertising and marketing and so forth. However simply because cloud-native software program exists for every of those areas doesn’t essentially imply a enterprise must undertake all of it.

It’s vital you perceive the issue you are attempting to resolve earlier than diving into a brand new answer. What could possibly be worse than investing all of your time, cash, and sources into implementing a brand new answer just for the bottlenecks and inefficiencies to persist after the mud settles?

Are you making an attempt to chop down on producer onboarding time? To take away handbook workflows out of your group’s plate? To enhance the general producer expertise? Nailing down the issue (or issues) you’d like to resolve with cloud-native expertise will aid you minimize by way of the noise and focus solely on evaluating expertise that may truly aid you attain your targets.

2. Evaluate what’s available on the market

Not each cloud-native utility is similar. The fitting answer for your small business will rely on a number of elements, together with your particular wants, funds, and most well-liked degree of management. After you’ve established your essential ache factors and set future targets, evaluate that knowledge towards what every answer can supply.

Keep in mind, product functionalities are only one piece of the puzzle. You also needs to think about issues like the extent of partnership you’ll obtain with every vendor, their requirements round knowledge safety, and the way they deal with software program updates and bug fixes after implementation.

Sidenote, for those who simply so occur to be available in the market for a cloud-native producer administration software program, we’ve put collectively a helpful consumers information to assist together with your evaluations.

3. Get references from present prospects of potential options

It’s one factor to listen to about the advantages of switching to cloud-native insurtech from the tech distributors themselves, however what do insurance coverage companies who’ve already made the change must say? Search for references from present prospects of potential options who have been making an attempt to resolve comparable ache factors as you are actually. Their success, not solely with the product itself but in addition with implementation and buyer assist gives you a good suggestion of what you possibly can truly anticipate from any given answer.

If you happen to’re curious concerning the success AgentSync prospects have had after implementing our options, we invite you to take a gander by way of our case research in addition to our buyer critiques on G2.

4. Prioritize safety and compliance credentials

Safety and compliance could be both a profit or a downside of cloud-native software program. Whereas some options prioritize safety and compliance, others don’t fairly meet expectations. However within the data-driven world of insurance coverage, safeguarding delicate producer and shopper info is crucial.

A vendor’s response to business requirements like SOC 2 and NIST can provide you a clearer image of which softwares take knowledge safety severely and which of them may open your group as much as extra danger. Nowadays, it’s not even price contemplating distributors who display something lower than a dedication to cybersecurity excellence.

5. Make a plan for coaching, assist, and inside adoption

Whereas a giant draw of switching to cloud-native options is taking tedious, handbook work off your group’s plate, updating your tech stack with out providing the mandatory worker coaching and assist will doubtless have the other impact.

Worker coaching is a straightforward and efficient method to allow your group to see the complete benefits of a brand new answer. With out coaching, you might discover folks hesitant to make use of the brand new software program, preferring as an alternative to simply revert again to the previous, acquainted method of doing issues. Which might be a critical waste of time for everybody.

In order for you a excessive adoption fee, make a plan for making certain everybody has a high-level understanding of the worth the answer gives and entry to coaching supplies and assist to fill in any information gaps that would maintain them again.

Cloud-native software program is paving the best way for insurance coverage organizations

With a rising variety of insurers planning to undertake cloud-native options over the following 5 years, it’s protected to say cloud-native expertise is quickly to be the brand new gold commonplace for the insurance coverage business. The earlier a corporation migrates to a cloud-native tech stack, the earlier it reaps the advantages and the higher ready it’ll be for future innovation.

If you happen to’re able to make the swap and future-proof your producer licensing and compliance administration processes, AgentSync may help. Attain out immediately to learn the way our cloud-native answer makes managing all the producer lifecycle extra environment friendly and cost-effective.


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