3 questions for selecting an insurtech partner
SaaS technology is everywhere, thanks to its ability to save companies significant time and money. According to Enterprise Apps Today, 73% of organizations are switching or planning to change all of their systems to SaaS platforms. However, with all the available options, selecting the right SaaS partner for your company can take time.
Additionally, the digital insurance industry’s growth continues to explode, making insurance increasingly more accessible. This technology transformation is one of the top priorities for insurance carriers that want to accelerate a modernization roadmap and break away from legacy technology systems that impede the ability to grow and innovate. Such fast-paced changes make selecting the right SaaS collaborator even more critical. When going through the process, there are three important questions to consider.
1. Does the solution go beyond a one-size-fits-all?
As we live in a “sell-buy” world, tech providers often have multiple sets of technology they want to sell to prospective customers. However, a partner must understand the needs of your specific business and be able to deliver beyond a standardized, generic solution. If you’re looking for a tech partner, find the one that can enable your strategy, tailor their technology to your business model, and grow with you and your evolving needs.
Technology partnerships are time-consuming to set up and scale, so it’s essential to find a strategic partner instead of a tactical solution for one problem. Keep an eye out for indicators that better gauge whether the partner you are vetting has a genuine interest in your company. They should ask questions about your business challenges and spend time learning your goals to develop a roadmap versus selling you what’s on their shelf already.
Solutions should be customizable and scalable with a direct path to a long-term partnership. A company will have proven success with its customers and want to use that to grow with you toward the desired outcomes. Similarly, it is critical to understand your partners’ technical nuances of processes they will face, like underwriting solutions or firing an application on all systems. The right partner will see beyond trying to fit a diverse company into the confines of an existing model or platform and be able to solve your needs instead of strictly selling their product.
2. What are the partner’s technological capabilities?
With the right technical solutions, a systemic approach can alleviate challenges experienced by a business. According to a recent survey by Digital Insurance, 36% of insurtech companies said continued product development is their top priority for 2023. When selecting a SaaS partner, it’s important to remember that while a company may have decades of experience, working with a direct life insurer specialist may be completely new.
Take a tour of their already-launched technology and test the end-user experience. Do you find the product easy to navigate? Is it enjoyable to use or more of a burden? Don’t be afraid to ask questions to understand the tech. It is important to remember to know if the program is built modularly, the type of data fields available, and how easy it will be to integrate with the business’ existing technology. Ensure the right people are in the room to ask those questions.
3. Do you have chemistry?
Tech implementation can become easier when both parties understand one another. For instance, you must be able to tell immediately whether a test worked. You will need to measure outcomes and judge experiments based on data. A partner should have expertise in your business area and communicate aligned incentives.
To dive deeper into a relationship, go beyond the everyday. Spend some time with a potential partner just as you would with a friend or co-worker—get to know them to further your working relationship. You can also explore a company’s history with its previous partners through professional platforms like LinkedIn. Ask around about their collaborations and communication. You want the culture between the two companies to jell and know that you’re committing to multiple years of working with their team with a sense of excitement.
For those in the insurtech industry, continued evolvement and the adaption of new technologies mean that selecting the right SaaS partner is critical to a company’s future. Both entities must be aligned in their values and be able to brainstorm fresh ideas while harboring an innovative culture that can be flexible, adaptable, and visionary. With the right partnership, a bright future of making insurance more accessible is ahead.
