Author: Mirza Baig
There has been no better time to invest in an insurance incentive compensation solution in the cloud. Some argue that, with the current pandemic, there has been an increased demand in medical insurance services.
This creates yet another opportunity for insurance companies to ensure they are well-positioned to adapt to recent business demand, any compliance changes, delight their agents, and compensate them accurately, and retain their top agents.
Carriers can undergo digitalization, or what’s commonly referred to as a “digital transformation,” with a flexible, modern, easy-to-use pre-packaged cloud-based software application for the insurance industry, that is accessible anytime, anywhere, on any device.
The challenges posed by legacy solutions
Many insurance companies still operate with a homegrown and traditional on-premise solution, that is not flexible enough and expensive to maintain.
Administration and support for a homegrown and on-premise solution is largely dependent on the IT team, not your business user who can be the “Admins.” Even when IT support is required, it may be for a complex requirement that is limited in scope.
In the case of home grown application, maintenance is strictly dependent on a very small group of people who developed that specific solution - which can cause large, costly issues if they leave. Documentation is usually not updated after the initial build and deployment, making it very difficult and time-consuming for someone else to figure out where to look for algorithms and business rules.
On-premise commercial solution may also sound like a better viable option. However, most insurance companies end-up heavily customizing it - making it nearly as inflexible as a homegrown application.
Insurance carriers may also fall far behind with the software release upgrades if they’re not on top of it. This leads to missing out on new features, risking security and compliance, and other new key functionalities such as changing audit and compliance requirements.
Homegrown and on-premise solutions also have large upfront costs. Besides the server hardware, software and backup and storage costs, they require a lot of build or implementation time compared to cloud solutions.
Modern Incentive Compensation & Agent Management solution
With an industry-specific cloud solution, insurance companies rapidly deploy the application without the need of purchasing additional hardware, software installations, storage and backups.
Since it’s a Software-as-a-Service (SaaS) offering, it works on a subscription payment model. Software is always maintained by the vendor, so insurance companies are always on the latest software version. The new software versions are released by the vendors 3-4 times a year and automatically applied to companies’ subscriptions.
Carriers business users and managers today want less reliance on IT for any changes. Agent management and compensation cloud solution is easy to support, so even a non IT team person can perform everyday admin tasks.
Using commercial insurance software means you’re not at the mercy of a handful developers who created your homegrown custom application. They’re usually the only people who know the application inside out. Instead, business analysts and likes, who specialize in insurance compensation and agent management, can be easily hired. Even with minimal documentation, they can figure out solutions while supporting your commercial insurance solution.
Insurance Compensation Management cloud solutions, like CallidusCloud Insurance ICM and SAP Agent Performance Management, offer intuitive user-experience with mobile capability, which translates to minimal training and acceptance from end users, including producers.
Present time calls for digitization of a traditional business and getting rid of the barriers so insurance companies can adapt to ever changing business needs and compliance.
A cloud-based insurance industry solution offers rapid deployment and seamless upgrades many times a year. This ensures insurance companies stay up-to-date with new features as well as security and compliance.
Commercially available cloud solutions could mean flexibility, agility, security, compliance, user acceptance, mobility, eliminating/reducing the dependence on IT and empowering your key business users to take the charge.
Learn more about the author, Mirza Baig.