Forward-thinking Insurance companies spend a lot of money – running into millions of dollars, on acquiring the software they use and the ones they don’t.
As an Insurance company, choosing software for your business and getting the best return using it is always an exhausting task.
At Curacel, we have a solution to help you to navigate the abundance of Insurance software and its offerings you can choose from.
This software could range from the ERM to Customer Support to software that helps you improve your services like claims submission and automation, and the ones for reducing fraud and waste.
A lot of Insurers invest money, that can be seen as wasted globally on IT solutions that are never actually used.
According to The real cost of unused software report by software company 1E, based on research amongst 129 corporations from various industries, the installed-and-unused software accounts for 23% in the EMEA region and 37% in North America.
Approximately, one out of three pieces of software purchased and installed is a waste.
According to a 2019 report by Statista: IT spending as a share of a company’s revenue was the third biggest in the finance sector companies, with 10% of their revenue being invested in IT.
This breakdown will make it make sense:
- As a direct result of inefficient or ineffective communication, companies lose between $11,000 and $15,000 per employee per year. (CIO INSIGHTS)
- Employees report losing an average of 22 minutes per day dealing with technology-related problems. (Robert Half Technology Survey, 2016)
- Inadequate or outdated technology leads 18 per cent of employees to download unauthorized third-party apps without consulting IT, according to Ring Central, which can lead to costly network security issues.
In Insurance, the investments are typically large, impact many clients, and have very complex regulatory requirements. Detailed planning for such projects is highly important.
Forrester research from 2019 shows that as much as 32% of insurers’ IT budget goes to digital transformation. That’s where you have to know how to navigate the rough waters – ‘how to choose your software partner wisely?’
Two main product type
There are different types of software offered on the software market and can be divided by their size and complexity option – Smaller and Bigger.
The bigger option encompasses core systems and complex suite solutions. These are software that is mostly over-stacked with functions. Such systems always have numerous and complex options, however, part of these can be used very rarely – or not at all. A lot of Insurers still operate this way, thinking it is the only way for back-office operations.
The smaller are applications created with an agile approach. It is based on “consuming what you use now”. Think of the subscription economy. Tien Tzuo wrote about it. The idea is to focus on the fast delivery of business values, with only the critical functional scope without any of the extras.
For example, as an HMO, using the Curacel Claims Automation tool to improve your business, allowing Providers to submit their claims easily and fast without all the technology-heavy lifting. It does not only cut down your cost but improves your customer’s engagement, getting their jobs done.
As an Insurance company, you can either:
+ Going with the Pricier, more comprehensive
Think of it this way; a core system or software suite refers to multiple applications connected in one solution, offered by one vendor.
Having a single solution that can handle various tasks can bring some relief, especially for ‘the-which-function-is-where problems’ that has essentially been cut out.
These products have a very large function scope and can cover many operations, from sales to accounting – Microsoft, Adobe and others.
What are the pros and cons?
- Variety of functions
- Convenient for the unknown of the future needs
- One purchase process
- One solution, easier to keep track of
- Bigger investment from the get-go
- Lengthy implementation and consultation phases
- Less specialised in single functions
- One-size-fits-all approach
- Many functions may never be used
+ Going with the Less pricey, more adjustable
Solutions that are offered with the agile approach in mind are highly adjusted to the very specific needs of the customer – the Insurance Company. These solutions are usually less comprehensive in terms of scope at the beginning, the delivery is quite fast. As an Insurer, you will enjoy the advantage of contributing to the development of the product and solution to suit your current and recurring problem. That’s where customer feedback, customer support and engagement comes in.
These however will not cover a full range of functions for the whole company in one product.
What are the pros and cons?
- Fast delivery
- Adjusted to customer needs
- Functions designed for one field or process
- No useless options
- Cheaper than core or suite systems
- Easy to learn due to limited functions
- Fewer functions
- Need to be integrated with other solutions within the company, which can have a different design (GUI)
- Many purchase processes
So, what’s right for you:
With the growth of innovation and a new entrance into the technology solution space, especially the Insurance sector which is quite nascent when it comes to using technology to drive innovation and growth.
With many solutions offered by technology companies, the choice isn’t simple.
The solution might be to find a vendor or a solution provider that offers both comprehensive services and specialised solutions that touch different pain points in your company and solve your problem, help you get the job done and still improve the company’s bottom line.
Such a solution provider should be able to support your business in optimising the IT architecture step by step towards expanding the whole IT ecosystem with further systems from their offering.
The biggest step towards buying the proper software is to focus on the end-user needs, your customer, and discuss these with employees that are dealing with these users.
This way the company will be able to audit what is already in place, what is a waste and what is needed.
A whole digital vision of the company will be helpful to create a path of changes.
Finally, don’t forget about automating your claims
At Curacel, we have solutions and still investing in research and development, to help companies like yours optimize their growth, offer premium services to their users and still be profitable.
We’ve automated all these processes. Talk to our sales team to know how we can help you.