This submit is a part of a sequence sponsored by AgentSync.
Digital transformation is taking the insurance coverage business by storm as extra businesses, carriers, and MGA/MGUs replace their handbook processes in favor of contemporary, automated options. On the subject of a know-how 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 offer worth.
The appropriate tech accomplice will help you and contribute to your success all through each stage of your small business. The flawed accomplice will value you greater than they’re price and depart you feeling extra like a transaction than a real accomplice. Overhauling legacy know-how (or changing your present not-so-perfect answer) can positively impact every aspect of your business, however the course of isn’t a simple one. To discover a accomplice 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 check distributors earlier than deciding which one to accomplice with. The method entails sending inquiries to a shortlist of potential distributors to get extra element into their answer and the way it can (or can’t) handle a company’s ache factors. Not all compliance options are the identical, so an efficient RFP can assist you identify which vendor is best for you.
Whereas conducting an RFP may be overwhelming, there are some issues you are able to do to set your self up for achievement and be sure to’re getting the knowledge it is advisable to make the proper resolution.
To make the method as easy as potential and keep away from having to repeat it once more within the close to future, know these 5 widespread limitations to profitable RFPs and easy methods to overcome them:
1. Conducting inadequate market analysis
Typically, firms 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 important step to find your long-term compliance accomplice. Companies might go into the RFP course of already understanding one or two distributors they wish to think about, however neglecting to do any additional analysis can restrict your possibilities of discovering one of the best accomplice for your small business. The folks in control of selecting who makes the shortlist might have bias towards a specific answer, however that doesn’t imply they need to neglect taking a look at 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 need to 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 ample market analysis can assist you discover the three to 5 distributors which can be almost definitely to fulfill your distinctive enterprise wants. Researching which of them you’d like to ask to the method reduces the hassle required downstream and will increase the percentages of receiving high quality responses.
2. Asking the flawed questions
Uncovering the true worth of an answer isn’t potential for those who’re not asking the proper questions. Tech distributors aren’t thoughts readers. When you’re searching for particular data, it is advisable to make sure that the questions you ask are detailed sufficient to uncover the knowledge you need.
For instance, relating to pricing questions, you don’t wish to simply ask how a lot an answer prices. As an alternative, ask concerning the answer’s complete value of possession. That manner, distributors gained’t be as more likely to miss any extra charges they cost for issues like information pulls or customized reviews and also you gained’t be in for a shock while you obtain your first bill. For extra particular examples of questions you ought to be asking in your insurance coverage compliance vendor RFP, try our free business useful resource: 10 Questions NOT to Ask in Your Insurance coverage Compliance Vendor RFP (And What to Ask As an alternative).
Utilizing the knowledge you’ve gathered from your personal inside discussions and market analysis, divide your RFP into completely different sections, every with its personal subset of questions. Sections may embody:
- Pricing
- Common enterprise questions
- Product performance
- Safety
- Aggressive information
- Buyer help
In every part, ask a mixture of closed- and open-ended questions to permit distributors to offer a major quantity of element with out overwhelming you with data. 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 wish to spend time evaluating too many distributors, you additionally don’t wish to ask too many questions in your RFP. Keep in mind, the extra questions you ask, the extra responses you’ll have to dig by way of. Whereas it may be tempting to ask as many questions as potential proper off the bat, your RFP must be reserved for extra high-value queries.
You’ll at all times have an opportunity to dig into the main points in a while 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 data
Whether or not intentional or not, vendor responses comprise a sure stage of bias. It’s simple 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 possibly can complement the knowledge you obtain from a vendor with data from third-party sources. This might embody reaching out to folks in your community who’ve expertise working with a vendor, studying evaluations on well-liked software program evaluation web sites like G2, studying by way of 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 way of 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 significantly wastes distributors’ time, cash, and assets, in addition to your personal. After all it’s OK to assume you understand who you wish to accomplice 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 had been certain was one of the best match can’t really provide the extent of reporting that you simply’re searching for, or that its producer information is admittedly solely correct about half of the time.
Compliance is mission-critical for insurance coverage carriers and businesses
Compliance is a crucial a part of any insurance coverage group’s operations and selecting who to accomplice with is a choice that shouldn’t be taken calmly. Whether or not you’re prepared to start out 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 achievement by avoiding these widespread pitfalls.
For more specific help and sample questions, download our guide today.
And for those who haven’t already, think about including AgentSync to your listing of potential compliance know-how 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 today.
