5 Risks of Investing in Insurance Compliance Management Software

We’ve already shared how investing in insurance compliance management software is crucial for carriers, agencies, or MGAs. 

However, there are 5 risks involved with this investment that you should be aware of. Otherwise, you might end up wasting your money,  time, and effort without getting the desired results.

This problem can be avoided by understanding the risks involved and how to identify inadequate solutions. The right software will not expose your organization to these risks.

To help you make an informative decision, we created this article to give you insights on what to be wary of when choosing insurance compliance management software.

1. Weak Data Security

Like other firms in the financial services sector, insurers that handle large amounts of customer data attract the attention of cybercriminals. A breach involving this type of data can lead to severe financial loss for the individuals affected.

Noncompliance in this area can cost an organization thousands of dollars in legal penalties. Even a small error can pose a significant financial risk to insurance entities.

This is a growing concern which makes the number #1 risk in our list. According to Insurance Journal, 56% of the respondents believe cyber risks in the insurance sector will greatly increase in 2024.

Of course, many of the businesses of people who suffer from cyber attacks are still using conventional spreadsheets, which are easier to hack. However, you need to make sure that the software you choose has data security measures in place to protect your sensitive information.

Sensitive data elevates the need for security measures within any compliance management software. Regular updates are crucial—they often contain security patches that increase protection.

We recommend avoiding Excel-based BI solutions. These are applications made with Microsoft Excel. The applications have many vulnerabilities that are being constantly exploited by criminals. Always look for modern software with its own dedicated technology—like Agenzee—to minimize risks.

2. Increased Compliance Gaps

The potential for noncompliance widens with each human error. Any small failure in monitoring and maintaining compliance can lead to various shortcomings, from simple oversights to potentially catastrophic audit failures.

Compliance regulations are subject to constant shifts. Keeping up-to-date with these changes isn’t merely a matter of diligence — it requires a sophisticated and proactive approach.

If your compliance management software isn’t doing its job, your teams may not be aware of any gaps until it is too late.

By employing the right insurance compliance management software, you can identify potential compliance issues before they become bigger problems. You should look for solutions that:

• Have automated license and appointment expiration alerts
• Offer real-time license and appointment updates
• Sync directly with NIPR to bring the latest data to your dashboard

Effective insurance compliance management software should provide mechanisms for timely updates and adaptations. 

Don’t tolerate any delays.

You must ensure that your compliance framework remains robust and responsive at all times.

It is a risk if the software lacks API capabilities which simplify onboarding processes. APIs aid in seamless integration, allowing software to interact with other applications and facilitate data exchange between systems.

This feature holds particular significance in the insurance sector, where agencies, carriers, and MGAs utilize various systems for customer relationships, financial operations, and more. 

Therefore, it is crucial to inquire about the API functionality and security when evaluating your software. Agenzee offers REST APIs that can integrate with all kinds of software systems.

3. Difficult Onboarding, Data Entry, and Integration

One challenging obstacle is related to onboarding and data entry. Many software systems in the market are not designed with user-friendliness in mind.

The initial setup can become a herculean task, requiring weeks, if not months, to input data accurately. This translates into different problems, such as:

• Counterproductivity: Delayed onboarding is a nightmare for businesses with tight deadlines. It can cause loss of revenue opportunities due to delayed processes.
• Manual errors: A high chance of mistakes during manual data entry, leading to compliance breaches and penalties.
• Hidden cost: Spending money on training employees to use a difficult system. Some providers may also charge for essential features or integrations.

When requesting demos or free trials, some of the key features to watch for include an intuitive dashboard. This will minimize—or completely eliminate—the training or adaptation time. 

Also, look for a bulk import feature that offers you the ability to upload your data quickly and without much human intervention.

However, there must still be an option to manually add producers. Make sure the solution you choose has this flexibility.

4. Lack of Quality Support

The selection and implementation of compliance management software are just the first steps. Just like any other software, you will need ongoing support to maximize its use and effectiveness.

For example, you may need support for technical assistance. You might also need to ask for resources or documentation at some point. This is especially true when you are dealing with complex issues.

Many providers fail to offer quality customer support, and they leave their tenants hanging by a thread. Other companies may charge extra for additional support. This could be a challenge if you don’t have any in-house IT staff.

To avoid this risk, research reviews and ratings of the software provider’s customer support. You can see how satisfied their current tenants are.

Also, look into their policies and contact them to test their support yourself! Contact the software provider team and check their:

• Responsiveness: They should respond within the time window promised by their SLA
• Support channels: Do they offer email, phone, or live chat?
• Quality of solutions: Do they solve your problems effectively?
• Availability: How often is the support accessible?

Expertise: Does the support team have technical knowledge and experience in insurance compliance management?

5. Limited Scalability

Scalability is about preparing for the long haul. You must ensure the solution you invest in today is capable of meeting the demands of your business tomorrow.

Don’t limit yourself to your current needs but also to where your business will be in the future. That makes it crucial to ask yourself the following questions before making a choice:

• Can the software grow with me, or will it become a hindrance?
• Does it have planned updates? If yes, which are they? Are they complimentary?
• What happens if I expand my business or add more agents/producers?
• Does the software have any limitations in terms of users, data storage, or features?
• Will it be able to handle a higher volume of data and processes?

Be sure to choose a solution that meets your current needs and can adapt to future changes. Additionally, make sure that the company provides regular updates and new features to enhance the software’s capabilities. This will prevent any hindrances in growth and keep your business running smoothly.

Discover Agenzee, Your Go-to Insurance Compliance Management Software

Agenzee stands at the forefront of addressing the complex challenges outlined above, offering a comprehensive and intuitive solution for insurance compliance management.

Technology Experts

Our team has technology experts with years of experience in developing software solutions specifically designed for the insurance industry. We understand the sector and the challenges you face when it comes to compliance management. We designed Agenzee to meet these needs head-on.

No Compliance Gaps

Our modern technology automatically adjusts to NIPR updates, eliminating compliance gaps. We ensure that your license and appointment statuses are always current, negating the risks of non-compliance and audit failures.

Remember, a good system should not only report on current compliance but also offer insights to help you predict.

Streamlined, Fast, and Easy Onboarding

Designed with efficiency in mind, Agenzee simplifies onboarding and data integration processes. You can swiftly select your branch and then utilize the drag-and-drop feature to upload your .xlsx file, containing all necessary producer information. This not only significantly reduces the time spent on data entry but also minimizes the likelihood of manual errors.

For those who prefer a more structured approach or are adding producers for the first time, we also offer a downloadable template. You can fill in your data within this template at your convenience before making the upload.

Responsive Support

Agenzee prioritizes premium customer support, providing immediate, quality assistance for any issue. Our responsive, knowledgeable team is your partner in compliance management, ensuring you have access to the right information and technical expertise when you need it.

This commitment extends to our SLA promise, guaranteeing effective solutions and continuous satisfaction.

Future Enhancements

Looking ahead, Agenzee is committed to expanding its ecosystem of integrations even further. Integration capabilities with leading software solutions such as Microsoft Office, Salesforce, and Workday are in our roadmap.

Remember to ask us about our future plans during your demo session!

Start Your Journey with Agenzee Today

Partner with the industry leader in insurance compliance management software – Agenzee. Book your free personalized demo today!