This article is part of a series sponsored by AgentSync.
Ensuring insurance compliance is crucial in the business world. Non-compliance can have severe repercussions for various entities within the insurance industry, including agencies, carriers, MGAs, MGUs, producers, adjusters, and broker-dealers.
Choosing the right technology partner for your compliance needs can make all the difference. It can turn your licensing compliance nightmares into a seamless process that exceeds your expectations.
However, the wrong choice of a partner can lead to negative outcomes such as:
- Overspending on a solution that fails to meet your requirements
- Exposing your business to compliance and data security risks
- Struggling to achieve company-wide adoption, resulting in continued use of manual and error-prone processes
- Losing valuable employees and distribution partners due to the frustrating experience of working with you
While the insurance industry advocates for modern practices, many compliance technology vendors still engage in outdated methods. These vendors may commit serious “crimes” against their customers, causing frustration, financial losses, and operational inefficiencies.
In this series, we address some common “crimes” that insurance compliance tech vendors commit against their customer base. We’ve covered financial crimes and support crimes in previous parts. In this final segment, we delve into technology crimes. If you’ve experienced any of these tech-related issues, it’s time to reconsider your current vendor.
Unveiling Technology Crimes in Insurance Compliance
While some crimes may be forgivable, technological shortcomings can severely impact your business operations. It’s essential to address these technology crimes to ensure your compliance tech investment pays off in the long run.
Avoid falling victim to these prevalent technology crimes:
1. Dirty and Stale Data
Access to accurate data is critical for making informed business decisions. Inaccurate or outdated data in your compliance management solution can lead to various issues across your organization.
Continuous synchronization with reliable data sources is essential to stay compliant and up-to-date with industry regulations. Improper data handling can result in compliance breaches and operational inefficiencies.
Customer Feedback: “Our current solution lacks accurate data due to synchronization issues, impacting the reliability of the information.”
2. Dependency on Spreadsheets
Relying on spreadsheets to rectify data discrepancies defeats the purpose of investing in compliance technology. A modern tech solution should eliminate the need for manual record-keeping and cross-referencing.
Customer Feedback: “We resort to maintaining separate records outside the system due to the solution’s limitations.”
3. Outdated Siloed Technology
Modern insurance infrastructure should facilitate operational efficiencies and scalability. Solutions built on outdated technology hinder integration and limit scalability, resulting in inefficiencies.
4. Processing Incomplete Transactions
Inadequate transaction validation mechanisms can lead to the processing of incomplete applications, resulting in unnecessary fees and compliance risks. Implementing warning systems can prevent erroneous transactions and save costs in the long run.
Customer Feedback: “Our current solution lacks proper notifications, leading to redundant transactions and increased costs.”
5. Security Vulnerabilities
Data security is paramount in the insurance industry. Choosing a compliance vendor with lax cybersecurity practices compromises your organization’s security and reputation.
Vetting vendors for robust cybersecurity measures is crucial to safeguard your data and prevent cyber threats.
Avoid Technology Crimes with AgentSync
If you’re facing technology challenges with your current compliance vendor, explore AgentSync’s Customer Love approach. Benefit from transparent pricing, responsive support, and a cutting-edge tech platform designed to enhance your compliance operations.
Discover a new standard in insurance compliance with an AgentSync demo. Schedule a demo now!
Topics
Fraud
Tech
