This is part of the list supported by AgentSync.
The Southwest Airlines disaster in 2022 may have been difficult for everyone involved, but there was one good thing that came out of it. This disagreement helped spark a larger conversation about a topic we’ve been talking about for a long time: the problem of outdated technology. As we begin the new year, we expect professionals in all industries to take a closer look at the cracks in their technology devices and their entry systems.
Technology and the insurance business often go hand in hand
The insurance industry is no stranger to old technology. As a well-known business, technology is synonymous with education. It wasn’t until the COVID-19 pandemic started to cause business interruptions that many insurers were forced to change their policies and programs to keep up with the new safety guidelines.
In many ways, the COVID-19 pandemic was the catalyst for the digital transformation of the insurance industry. But, countless carriers and organizations still rely on the old way of doing things. Why is that?
The answer is not straightforward. Some may be concerned about the cost while others are more concerned about the difficulty of removing replacement systems. Some fear that the changes will be too much for workers and that it will disrupt the business more than it is worth. However, if Southwest’s debacle has taught us anything, it’s that there’s no reason to risk the risk that outdated technology can pose to your team, employees, and customers.
So, without further ado, here are seven ways your legacy plan could be doing your insurance business more harm than good.
**We will be looking at these problems from an insurance perspective (since that is our expertise), but most of these problems affect the businesses of any company that still relies on old technology.
1. Legacy technology is expensive
One of the obstacles we hear from insurance professionals who are still running their business on old systems is that a new solution is not in the budget. While it’s true that the up-front cost of adding modern equipment to your technology can be substantial, it pales in comparison to the cost of maintaining your existing infrastructure. Choosing to do things the way you’ve always done them because it seems easier (or cheaper) is now known as technical debt. And like most debts, in the end it comes down to debt.
Old systems get, they cost a lot of money to maintain. In addition, technology innovation may be harming businesses in other, less obvious ways. For example, traditional enterprise management systems (AMS) or customer relationship management systems (CRM) cannot provide the visibility or ease of use that employees, manufacturers, customers, and downstream stakeholders are looking for. If these customers, colleagues, and partners are not satisfied with their experience, they may take their business (and their skills) elsewhere, seeking out new opportunities.
2. Modern technology can destroy your reputation
You work hard to build a good reputation for your insurance business. A bad reputation can drive your customers into the hands of your competitors and spoil your reputation. We saw firsthand how outdated technology dragged Southwest Airlines’ history into the mud in a matter of days.
When it comes to insurance, there doesn’t need to be a major disruption or mistake with your legacy system to affect how customers and existing employees and partners view your company. It can also be the everyday technology of ancient technology that reaches people. If you continue to use outdated technology, co-workers, prospects, and customers may see your company as falling behind. And if your technical skills seem to be rooted in the past you will have a hard time convincing anyone of your future in the market.
3. Technology can get you into control problems
The main drawback of the current technology is its inability to integrate with new applications. Insurance operators need systems that can communicate with each other and paint a complete picture of their data to make business decisions. Administrative complexity the administration of the administration.
Switching to an integrated integration solution (such as AgentSync) can save the cost of managing compliance and ensure that manufacturers and agencies are continuously compliant – without the manual effort required to ensure compliance today.
4. Legacy technology can limit the growth of your organization, carrier, or MGA/MGU
Inherited systems are not common. Modern problems require modern solutions and modern technology is often ill-equipped to meet current needs. For this reason, inherited systems can be a major barrier to organizational growth and innovation.
The longer an organization waits to change its practices, the more difficult it is to meet market needs and find new markets. If you’re not ready to revamp your organization’s systems, there are other ways to help you get your foot in the door.
5. Technology makes work less efficient
Legacy systems can prevent your organization from realizing its full potential. With outdated technology, it’s likely that your employees are spending more time on manual, repetitive, and unproductive tasks. Not only is this a waste of talent, but it also increases the chances of human error and inconsistency.
Without insurtech innovation, processes like lead generation and compliance management consume more time and resources. Remember earlier when we said that basic systems often don’t integrate easily with other technologies? This lack of communication can create data and workflow silos that prevent information from flowing between teams and ultimately slow down processes.
6. Technology can make you vulnerable to cyberbullying
Hackers are constantly finding new ways to bypass Internet security measures and gain access to protected information. In the software age, it may not have the necessary defenses to protect against the latest cyber threats. Cyber security is a major concern for insurance companies and carriers who often store large amounts of customer information. Outdated software can make this data vulnerable to corruption, returning you to past policies about reputation damage and dollar value.
7. Technology can disrupt the recruitment process
We’ve said it before and we’ll say it again – the insurance industry is in the midst of a hiring crisis. Retirement and talent shortages mean that top candidates have more power to choose where they want to work. And if you think that the opportunity to work with the software that their grandparents used to be is a good selling point then oh boy do we have news for you.
Today’s job seekers are looking for innovative companies that are using the latest technology to improve customer and employee experience. Providing developers with advanced technology with less time spent on manual, repetitive, time-consuming tasks can help as you continue to compete for innovation.
The time to transform your insurtech is now!
The best days for your insurtech have come and gone and it’s time to rethink the “if it ain’t broke, don’t fix it” attitude you may have had about your practice. In fact, it’s best to fix the problem before it gets too bad (again, you only have to look at Southwest Airlines for proof). Of course, outdated technology can do more harm than good when it comes to your agency, carrier, or MGA.
Don’t be like Southwest and wait until the damage is already done. It’s time to break down your entry systems and the problems that are causing your insurance business. If you’re ready to declare your independence from old technology and methods, see how AgentSync can help you achieve your potential.
InsurTech Tech company’s opinion