Is the vendor truly focused on the insurance industry or are they a jack of all trades where insurance is merely one of their many capabilities? Within insurance, does the vendor specifically understand the life insurance space – or are they equally (or more) focused on P&C, healthcare or other verticals?

A vendor focused on the life insurance industry brings a deeper understanding of your challenges and requirements and can bring proven solutions to the table. This translates to more efficient implementations that are more likely to meet your needs.

Beyond gaining an understanding of a vendor’s core capabilities, consider carefully if a potential partner is a good fit for your specific needs - especially as it relates to the amount of IT / business effort your company will need to plan for, as well as time to market. It is in these areas that vendors often stand apart.

Common pitfalls include vendors claiming “minimal customer IT lift” or that their solutions are “low code” or “no code” - only for the client to find out later that there is much more to the story. Some out-of-the-box solutions may require additional client IT effort and/or a much longer time to market than originally promised in order to be customized to your specific needs. Ask vendors for specifics about what your IT team will need to contribute and how many hours of effort are anticipated to implement your exact requirements so that you can assess actual time, energy, and inclusive expenses (internal and vendor-related).

Given the nature of these pitfalls, it is important to request references and speak to others who have partnered with a prospective vendor. This will help you gain a clearer understanding of vendor performance.

While everyone in the insurance industry shares a certain set of challenges, all organizations have additional unique needs and requirements. Make sure potential partners will support and collaborate with you throughout the development and implementation process to avoid the mistake of adopting a “supposed” turn-key solution that may not fully address your goals.

When asking about customization capabilities, it’s important to not only gain assurance that the solution can be flexible, but also gain an understanding of:

• ⁠Do customizations require an additional investment?
• How does customization affect development lead time?

Ask for specific examples of previous customization work and probe for the vendors ability to deliver solutions on time and within budget.

When it comes to digital solutions, security and compliance are paramount. And it is essential to choose a partner you can trust to keep both your proprietary information and your clients, personal information safe.

Ask the vendor what kind of audit reports they have conducted, if they have run penetration testing, are SOC certified, and if they have any accreditations in place. Ask where their data is stored – and if there a host in your country of origin. Confirm they have the proper compliance to US and Canada eSign (UETA) guidelines. Also verify that they have not experienced any data security issues in the last year.

It is important that any investment be made with a solution that can grow with you. Especially in our dynamic industry, requirements can quickly evolve. Consider if potential vendors have the capability to address your current requirements, as well as the ability (and quite frankly interest) to understand and support your long-term goals and needs.

It goes without saying that cost is also a key factor, and ensuring you understand the FULL cost of a project is critical. Factor in any customization costs as well as internal costs, such as IT expenses, vendor management, and internal project management. Careful consideration in this area is important, as unexpected costs, especially unanticipated IT resources, can have a significant impact.