Brokers urged to rethink tech purchase priorities
The insurance industry is built on relationships, which is a key factor in its success.
However, when it comes to technology buying decisions, this same instinct can lead brokers into costly mistakes. There are three patterns that brokers should be aware of in their technology buying decisions.
Relationships and Technology Buying
The insurance industry’s reliance on relationships is not necessarily a bad thing. It’s what allows the sector to function as well as it does.
However, when it comes to technology buying, brokers need to be more careful and considerate of their actual needs.
Patterns to Watch Out For
One pattern that brokers should be aware of is the tendency to overpay for technology. This can happen when brokers prioritize the relationship with the technology provider over the actual cost of the technology.
Another pattern is the failure to consider the long-term costs of the technology, including maintenance and upkeep.
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Brokers should also be aware of the potential for technology to become outdated quickly. This can happen when brokers invest in technology that is not adaptable or scalable.
It’s not just about the technology itself, but also about the support and maintenance that comes with it.
Brokers need to consider whether the technology provider will be able to provide adequate support and maintenance over the long term.
Building Enduring Insurance Software
Tobias Bergmann, founder and CEO of tigerlab, has spent over 18 years building core insurance platforms for brokers, MGAs, and insurers.
He has learned that building enduring insurance software requires a deep understanding of the industry and its needs.
Bergmann notes that his experience has taught him what technology holds up over the long term and where AI honestly fits.
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Bergmann’s experience highlights the importance of considering the long-term implications of technology buying decisions.
In the insurance industry, relationships are key, but when it comes to technology buying decisions, brokers need to be more careful and considerate of their actual needs.
By being aware of the patterns that can lead to costly mistakes, brokers can make more informed decisions and invest in technology that will support their business over the long term.
For instance, the use of generative AI has made it easier for individuals to produce convincing evidence of false claims, which can lead to increased insurance fraud.
A connected claims ledger can make it easier for insurers to detect such fraud.
