This submit is a part of a sequence sponsored by AgentSync.
Digital transformation is taking the insurance coverage trade by storm as extra businesses, carriers, and MGA/MGUs replace their handbook processes in favor of contemporary, automated options. In relation to a expertise revamp, who an insurance coverage group companions with issues. The very last thing enterprise leaders need is to spend a big period of time, cash, and sources implementing an answer just for it to fail to supply worth.
The fitting tech associate will assist you and contribute to your success all through each stage of your online business. The improper associate will price you greater than they’re price and go away you feeling extra like a transaction than a real associate. Overhauling legacy expertise (or changing your present not-so-perfect resolution) can positively impact every aspect of your business, 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 entails sending inquiries to a shortlist of potential distributors to get extra element into their resolution and the way it can (or can’t) tackle a corporation’s ache factors. Not all compliance options are the identical, so an efficient RFP may help you identify which vendor is best for you.
Whereas conducting an RFP could be overwhelming, there are some issues you are able to do to set your self up for fulfillment and ensure you’re getting the knowledge it is advisable to make the precise choice.
To make the method as clean as attainable and keep away from having to repeat it once more within the close to future, know these 5 widespread boundaries to profitable RFPs and how one can 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 find your long-term compliance associate. Companies could go into the RFP course of already understanding one or two distributors they wish to take into account, however neglecting to do any additional analysis can restrict your probabilities of discovering one of the best associate for your online business. The individuals in control of selecting who makes the shortlist could have bias towards a specific resolution, however that doesn’t imply they need to neglect taking a look at some other choices.
On the flipside, inviting each potential vendor out there 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 out there.
Conducting enough market analysis may help you discover the three to 5 distributors which might be more than likely 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 improper questions
Uncovering the true worth of an answer isn’t attainable in the event you’re not asking the precise questions. Tech distributors aren’t thoughts readers. For those who’re on the lookout for particular info, it is advisable to make certain the questions you ask are detailed sufficient to uncover the knowledge you need.
For instance, in terms of pricing questions, you don’t wish to simply ask how a lot an answer prices. As an alternative, ask concerning the resolution’s complete price of possession. That method, distributors received’t be as more likely to omit any extra charges they cost for issues like information pulls or customized reviews and also you received’t be in for a shock while you obtain your first bill. For extra particular examples of questions try to be asking in your insurance coverage compliance vendor RFP, try our free trade 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 inner discussions and market analysis, divide your RFP into totally different sections, every with its personal subset of questions. Sections might embody:
- Pricing
- Normal enterprise questions
- Product performance
- Safety
- Aggressive information
- Buyer assist
In every part, ask a mixture of closed- and open-ended questions to permit distributors to supply a big quantity of element with out overwhelming you with info. Together with just a few 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. Bear 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 attainable proper off the bat, your RFP ought to be reserved for extra high-value queries.
You’ll all the time 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 info
Whether or not intentional or not, vendor responses include 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 truly ship on these guarantees when you’ve signed a contract?
You’ll be able to complement the knowledge you obtain from a vendor with info from third-party sources. This might embody reaching out to individuals in your community who’ve expertise working with a vendor, studying critiques on standard 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 might go away 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 critically wastes distributors’ time, cash, and sources, in addition to your personal. In fact it’s OK to assume you recognize who you wish 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 certain was one of the best match can’t truly supply the extent of reporting that you just’re on the lookout 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 vital a part of any insurance coverage group’s operations and selecting who to associate with is a choice that shouldn’t be taken evenly. 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 fulfillment by avoiding these widespread pitfalls.
For more specific help and sample questions, download our guide today.
And in the event you haven’t already, take into account including AgentSync to your record 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 specialists is devoted to offering glorious customer support from analysis to implementation and past. To study extra, view our demo today.
