We asked Jeffrey Glazer, CEO of Insurity, what questions are missing from requests for proposals that are sent to his company. He responded that carriers need to dig deeper on issues such as experience, vendor resources, and references.
What are carriers missing when it comes to core system RFPs?
An RFP for a core system replacement is a valuable tool to outline extensive requirements and the ways that the functionality and features of the proposed software meet those needs. It can be exhaustive: dozens of pages, hundreds of questions, countless angles, and sent to multiple vendors. After evaluating all of the yes and no responses, and supporting narratives , it might seem that those answers alone should be all a carrier needs to make a decision. But there are three questions that insurance carriers might consider asking on their RFPs that are often overlooked. The answers to these questions are crucial to ensuring that the right vendor—as well as the right software—is chosen.
1) What is the vendor's experience and history of successful delivery?
One could argue that the number of successful implementations a vendor has under its belt is just as important, if not more, than having the most bells and whistles in the software. What do their customers say about their production environment and the vendor, years after their project is completed? The vendor and its software should stand the test of time through maintenance, enhancements, technological evolution, industry changes, and the carrier's own changing environment and needs. Core systems typically provide decades of service, and carriers want to feel confident their vendor will be there as well.
2) What vendor resources will be working on the project before and after production?
The insurance industry is complex, and providing high value software solutions requires expertise not only in technology, and software development and maintenance, but also expertise in insurance and all the processes, regulations, and challenges involved. Core system implementations are never easy—most are very complex, and usually offer a few surprises along the way. An experienced team from a proven vendor has the benefit of "having seen it before" and is typically better equipped to react to those complex issues that arise during implementations. They've already learned the hard lessons, and developed an arsenal of best practices. After all, few carriers want to be the learning ground of a green behind the ears vendor touting their 'leading-edge' solution. These are typically characteristics that signal high risk to most insurance carrier buyers. In an industry that is all about risk, minimizing risk means choosing the known commodity: a proven vendor. .
3) Who are the vendor's current customers?
Many RFPs ask for references and typically many vendors provide potential customers with the biggest names on their list. A system should be built on experience; built on intelligence from past implementations. A carrier should ask a vendor to give them names of those they successfully implemented a solution for that have a similar business model or are in the same size category. This will help to ensure that a vendor has the right experience behind them to successfully handle their project.
(Jeffrey Glazer is the Chief Executive Officer of Insurity. In this role, he oversees all aspects of the business, which provides comprehensive solutions to help insurance carriers manage the entire policy life cycle for commercial, personal and specialty lines.)
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