A Guideline For Evaluating P&C Insurance Software Vendors

A Guideline For Evaluating P&C Insurance Software Vendors Over the past few years, the implementation of new technologies has impacted almost every industry, and insurance industry is no exception!

Nowadays, insurers have realized the significance of upgrading their core systems and thus, seeking a comprehensive P&C insurance software that could facilitate their core business functions such as policy administration. The automated software can drive efficiency in the claim processes, personalizing policyholder interactions, and shortening claims cycle while improving the bottom line. Also, it helps to sustain profitability and continual business growth. For this reason, insurers are seeking a good dedicated software company/vendor to get the software developed.

But it could be challenging for them to choose between a software vendor with more customers record or the one offering low prices and more functionalities.

Often, replacing legacy systems with new software solutions doesn’t expedite claims processing. Analyzing software vendors capabilities in terms of customer services and re-engineered processes is also crucial to quickly respond everchanging customer’s preferences.

Here, we are outlining few necessary checks insurers should perform while evaluating insurance software companies/vendors: Make a checklist and do your homework: As you move out in the market, you will find a plethora of insurance software vendors. To filter out the best software vendor, who can align your business goals, handpick few and start evaluating them on certain criteria such as:  Core experience- Analyze the core experience of the vendors with the particular software in the market. Note down every little detail regarding products, distribution capabilities and more.  Access to latest technologies- Since, insurers opt for the new software solution to enhance flexibility and speed of their business operations, ensure that the software can be easily integrated with all in-house applications. Plus, it should offer cloud-based solutions to keep you stay updated with the current trends.  Regulatory compliance- Ensure that your vendor is compliant with industry standards such as ISO, NCCI, and AAIS.

 Financial stability- Every insurer wants to sign a long-term contract with their vendors. So, prior to investing in any software vendor solution, check his stability records as well as market momentum.

Seek additional Information: Once done with the checklist and shortlisting few vendors, solicit some additional information to them. Simultaneously, ensure that you both are on the same page when it comes to understanding your business goals and objectives. Alternatively, you can document your high priorities so as to better illustrate why are you making a seamless transition from manual claim processing to automation. Ensure that the company has a well-qualified team to handle all core operations, including underwriting, customer service, claims operations, marketing, etc. Recognize their strengths and ensure that the team is weighing your business priorities up front.

Analyze software’s capabilities: By now, you must have left with choosing out of one or two potential vendors. Now, this is the time to use your due-diligence to analyze vendor’s software capabilities. With this you would be able to:  Determine the outcomes. As we have mentioned earlier, you can provide a documented priority list to the vendors early-on so that they can understand your business requirements well and illustrate a tailored software.  Determine the core functionality of the software to offer including functionality, processes, Integrations and conversions, training practices, etc.