The avalanche of data now available to insurance companies is rapidly changing the capabilities of an industry that has historically relied on manual processes. Insurtech entrepreneurs are discovering new advancements in data capture and analysis that allow insurance companies to do their jobs more efficiently and effectively.
However, it’s important not to leap before you look. It’s wise to prepare for the business realities and regulatory scrutiny that are inherent in the insurance industry. We at Perr&Knight have provided insurance technology consulting for many emerging tech companies to assist them in advancing their product in the complicated insurance industry.
Here are some essential guidelines to keep in mind as you proceed through development and rollout. Disregard these guidelines now–and you may end up paying dearly later.
Do your homework
In the heavily-regulated insurance marketplace, product rollout is not nearly as fast as in other industries. Constraints including privacy rules, compliance requirements and standards that vary by state can throw a wrench into the best-laid plans. We suggest partnering with insurance technology consulting experts who can help you navigate the tricky regulatory environment.
You might have developed a product to help claims but its functionality has the potential to improve accuracy in fraud detection or streamline marketing efforts. Qualified insurance consultants can evaluate your product and inform you if there are other uses for your technology beyond its original application.
Test your tech on real data
Feed real data into your technology to demonstrate specific outcomes that you can share with potential clients or investors. Measurable results can also support your case when submitting to regulatory bodies, especially if your product is entirely new to the industry.
Prepare for regulator review
Complicated regulations apply to the collection, evaluation, and sharing of data in the insurance industry. It’s smart to prepare for the range of questions you will be asked by regulators (keeping in mind that rules not only vary by state but also by line of business) BEFORE you are ready to submit your product for approval. Preparing ahead of time enables you to respond to regulator inquiries quickly and completely.
Be ready to train
Even insurance companies that embrace new technologies will undergo a transition period where staff needs to become comfortable using your product. The most successful Insurtech companies put support staff in place to train users, answer questions and help companies through an integration of the new technology with their existing systems and processes.
Use expert evaluation to validate your product
Before investing in major upgrades, insurance executives want to be sure that new technologies will deliver results that justify time and expense. Insurance technology consulting partners help secure buy-in from execs with data analytics used to quantify and support your innovation.
Your product might be fantastic and your user interface might be seamless, but those are only a few pieces of the Insurtech puzzle. Experienced insurance consultants can complete the picture by providing you with insight and preparation for the complexities of the insurance market as it relates to your product or service, saving you from headaches, hassle, and wasted resources.