There is no way around it: Success in today's insurance industryhinges on an insurer's ability to seek out and successfully deploytechnology. And it's no wonder as IT solutions address everythingfrom compliance, risk mitigation, customer retention, managingexpenses, efficiency improvements and more. Yet with so manytechnology options available, it is still an incredibly difficultand complex process to choose and implement the right automatedtechnology for a business.

Vetting a tech vendor is a mammoth task that necessitates astrategic approach that views the acquisition of new technology asan ongoing, long-term process. Here are some fundamental tips onhow to do so in the most effective way:

Technology Audit:

The first step is to decide whether or not a company even needsa technology upgrade. The most effective way to determine this isto conduct an internal technology audit. An insurer must assess itscurrent technology, determine what needs are not being met andanticipate future needs based on the changing business environment.Reliance on manual processes can be a sign that an insurancecompany is falling behind.

Using a Consultant:

Once an insurance company decides to upgrade itstechnology, it must determine whether or not to continuethe selection and implementation process with a consultant. Theprimary advantage of using a consultant is that he or she is aspecialist, and will likely have much more experience designing andimplementing new software. There also is a costbenefit to using an outside firm because the work is a temporaryengagement that does not require a full salary and benefits.

Creating a Strategic Plan:

The third step is to create a strategic plan that creates a pathfor the entire company to follow, ensuring that everyone is inagreement about the company's technology needs. A strategic planfocuses the insurance company's resources on top priorities andreduces the chance that money and effort will fail to generate aROI.

Benefits of Custom Technology:

The insurance company needs to choose between off-the-shelftechnology or have a system custom-designed. Custom technology iscreated to meet the exact needs of the user and offers the mostbenefits. It can take advantage of new innovations, such as theCloud, and more easily be upgraded to meet an insurance company'schanging technology needs in the future. If an insurer isusing commercial software, it is likely its competitors are, too.Using a custom system can give a company a competitive edge.  

Implementation:

An implementation plan sets out a timeline, defines what needsto be done and by whom, lists any risks involve and specifies theresources assigned to achieve the company's objectives.

For a smooth transition from a legacy system, C-level executivesmust lead the effort. Often mid-level managers are given theresponsibility without the needed authority to make things happen.This slows the transition, costing the company time and money.

It is also important to designate dedicated point-people tosupport any transition. The implementation is the primary focus forthese key staff members rather than being an added responsibilityto their existing duties. When point-people have competingprojects, it dilutes their focus and the implementation is treatedas a low priority.

Training:

In order to fully prepare the staff without overwhelming themwith lots of new changes, begin the training process before theimplementation. Remember, this is a process and should not be doneall at once. Rolling out a new solution should be done over time tohelp orient staff who may be very comfortable with the outgoinglegacy system.

People can be informed about the pending changes though companyemails and newsletters, or at staff meetings and formal trainingsessions. Make sure the point-persons will be able to answer anyquestions once the new solutions are being used, especially duringthe first few weeks.     

Using the right technology enables an organization to boostprofitability by more effectively delivering the insurance productsconsumers need in a way that is cost-effective andtime-efficient.  This requires insurance companies to haveproper processes for determining their technology needs,identifying the best options and deploying the chosen solution. Byfollowing a few basic tips, these tasks can be completed withminimized disruptions to an organizations' core business, enablingthem to enjoy the benefits while gaining a competitive edge.