Smaller insurance companies are migrating away from traditional in-house hardware and software systems, and who can blame them? New and innovative cloud-based applications are now available that save these companies time, money and headaches. These systems, known as Software as a Service, or SaaS, are changing the landscape of insurers and allowing smaller companies to better compete with their larger peers.
SaaS is available on many platforms, including captive insurance software for those companies who are classified as captives and insurance underwriting software for insurers who need up-to-date algorithms for underwriting purposes.
It is important that smaller insurance companies do their homework and understand the capabilities their companies need before subscribing to a SaaS agreement. In order to be successful, there are certain characteristics that a SaaS model should include for these companies.
Look For Industry Specifics
A generic one-size-fits-all philosophy is not necessarily the best choice for small insurance companies. A model that is too broad can be time-consuming to fine-tune and tweak to fit the business’ needs.
A better solution may be one that offers industry-specific templates and tools for easier conformity and implementation.
Upgrades and Revisions
Most SaaS vendors provide software revisions and upgrades as a part of their contractual agreement with the end user. However, this is not always the case. Some vendors charge extra for these services.
It is a good idea to read the proposed agreement with the potential SaaS provider and be well versed in all options available.
Insurance companies process data that includes confidential, personal information. Subscribing to the services of a SaaS vendor should not pose increased vulnerabilities for risk of data compromise or loss.
The SaaS industry is regulated to a certain degree on maintaining the safety of confidential information through encryption and other means. It is always recommended to ask questions and obtain written documentation of the safety and security measures that will be provided by each vendor being considered.
The Right Model Can Grow Your Business
There are many types of technological platforms available to smaller insurance companies that have proven to be invaluable in cost savings from the standpoint of eliminating the need for expensive IT departments as well as the pressures of staying abreast of regulations and updates to documentation requirements.
Choosing the SaaS provider that offers the best fit for software solutions is the first step.