The cyber threat landscape is rapidly changing and presents an ever-growing challenge to mitigate risks with the right coverage. The complexity of the threat landscape continues to grow as new attack strategies are identified with alarming regularity.
As an independent agent, the competition to remain competitive in today’s market is tough. The only way to stay ahead of competitors is by embracing new technology. As technology continues to evolve and new opportunities emerge for better customer service and more efficient operations, it can be hard to decide which insurtech companies to partner with to optimize performance.
With insurtech’s exponential growth – with no signs of slowing down – picking reliable partners who provide beneficial services requires comprehensive evaluation — so where do you begin? Use this step-by-step guide to help you get started with evaluating potential insurtech solutions. By understanding how insurtech impacts business objectives, you can leverage the right technology to reach internal goals with ease.
Four Things to Consider When Evaluating Insurtech Companies
Evaluating insurtech companies, you'll want to ensure the business has a solid foundation and meets all regulatory standards before putting your hard-earned money on the line.
Customer Support Options
Having the right customer service options at your fingertips is essential for getting fast, effective support - no matter what issue you may come across. By taking some extra time to research an insurtech's online services, you can ensure that any future hiccups will be swiftly resolved with minimal fuss and disruption to your experience.
When reviewing support options, it’s important to factor in details like availability times and if a sufficient level of technical assistance can be provided in case something happens while using the platform.
Financial Stability & Viability
A company's financial statements provide invaluable insight into its long-term viability. An insurtech company with a steady flow of revenue is likely well prepared to stay in business for the foreseeable future.
You want to find a company with a strong track record of raising capital and having a diverse group of investors. They are more likely to be well-positioned to grow and scale.
Finally, look at the company's customer base and the rate at which it grows. A company with a diverse and growing customer base is more likely to be successful in the long term.
Technology & Innovation
Look at the company's technology and the features it offers. A company with advanced technology and a roadmap will be well-positioned to meet evolving needs.
The company's user interface should be easy to use. A company that prioritizes user experience is more likely to have satisfied customers. You also want software that integrates with your existing methods. A company that can integrate with your current systems is more likely to be a good fit for your business.
Compliance & Regulations
Check the company's compliance with licensing and regulatory requirements. An Insurtech compliant with all regulations will be a stable and trustworthy partner.
Cybersecurity measures and how the company protects customer data are essential considerations. A company with solid cybersecurity measures is more likely to protect sensitive information.
Examine the company's claims handling process and how it handles disputes. A company with a transparent process for handling claims promotes satisfied customers.
The Due Diligence Process
A due diligence process is essential for making an informed decision. When evaluating insurtech companies, the process should include several steps. These include researching, meeting with company representatives, and testing the services offered.
Researching & Gathering Information
Start by researching the website and reading reviews from customers and industry experts. It can provide valuable insight into the company's products, services, and reputation.
Read industry publications to learn more about the company and its market position. You can better understand the company's strengths, weaknesses, and opportunities.
Talk to other agents and brokers in your network to see if they have experience with the company. They may also have some suggestions.
Meeting with the Company Representatives
Next, prepare a list of questions to ask company representatives when you meet. Gather information about the company's products, services, financial stability, technology, and compliance regulations.
Test the company representatives' responses to your questions and assess their knowledge. A transparent company with a knowledgeable team is more likely to be a good partner.
Testing and Piloting the Product or Service
Consider booking a free demo to test the company's product or service. It can provide valuable insights into the company's technology, user experience, and ability to meet your needs. Assess the results and feedback from the trial or pilot program.
Agents and brokers can make informed decisions by following a due diligence process. Evaluating insurtech companies and choosing the right partners can help you grow.
Conclusion
When evaluating insurtech companies, it is essential to consider several factors. For example, financial stability, viability, ease of use, compliance, and regulations are vital. A thorough due diligence process includes research, communication, and piloting services. These steps can help you make informed decisions.
Insurtech companies have the potential to bring significant benefits to the insurance industry. Some include increased efficiency, cost savings, and improved customer experience. You can take advantage of these benefits by evaluating these companies and selecting the right partners.
