Digitally powered insurers are rapidly implementing new models matching capital to risk. The pressure is on to have a strategy to stay ahead of the market, and the best way to do that is to leverage software that enables data-driven decision making.
The trouble is, amongst the pressure and the hype around insurtech (and the buzzwords), it’s often hard to differentiate between technologies and the teams you’ll be working with. Sometimes it seems easier to stick with the status quo. We get it because we’re on this same journey. As a data aggregator for the insurance market, we are continually searching for and selecting new data partners.
Graham Libaert our Director of Alliances leads this charge and says it helps a lot to follow a defined and consistent process when selecting technology and data partners. Also, it’s important to remember that you are (hopefully) going to have a long working relationship with them, so figure out whether you can work with their team, as well as their technology, early on.
Here Graham shares the steps his team follows to selectConcirrus’ data partners and what to look out for.
1. Define your problem and create hypotheses
Before we go searching for any new datasets, we first define the problem that we are trying to solve and then define some hypotheses to test. Rather than starting with a blank canvas, this means we have some focus when searching for new partners and the value we want to create. We often involve trusted experts from our network to help us define the hypotheses.
For example, as a (re)insurer or broker, your problem might be that you need more control over your pricing strategy, or that you want to customise client risk policies to win more business, or maybe you plan to reduce loss ratios by identifying new revenue streams. Make sure you have this clearly defined before you start your search.
2. Search for data/technology companies
The next step is to research different companies that will help you solve your problem. At this stage, Graham and the team do their own research as well as speaking to trusted advisors within the Concirrus network and our own customers. This helps to compile a varied list of potential providers.
3. Qualify each company
At this stage, your problem definition and hypotheses will be really important to help you qualify whether each company can help you deliver what you need to from a technical perspective. Make sure you understand the longer-term vision of the technology too, in what direction is it headed and will this support you and your wider business in the long term?
Equally, if not more important is working out whether their team is a good fit with your own. Do they share your vision? Do they have a solid technical and customer service team that will support you in your journey? Are they used and trusted in the industry? Are they open-minded, transparent and flexible? Do they have the necessary domain expertise? Are they well connected? Can they support international operations? Can they rapidly manipulate data? Make sure you know what’s important to you and have a way to qualify that which each potential partner. Spend some time with them.
At this stage, Graham and the team speak to their network and reach out to customers of each provider to get intel on what they are like to work with.
4. Select a preferred partner and develop Key Performance Indicators (KPIs)
Once you have selected the company that meets both your technical and commercial expectations, work together to develop specific KPIs. This will help both teams to be on the same page around expectations and gives something to revisit on a regular basis to make sure the technology is delivering what you need.
5. Assign an ongoing team and continually revisit KPIs
It’s really important that you have an individual or a team dedicated to ensuring you're getting the outcomes and support you need on an ongoing basis. Make sure you put some structure in place to revisit the KPIs on a regular basis and tweak them if necessary.
Graham and the team have developed a ‘Data Playbook’ for each of our data partners which includes information on the company and team, what their data solves and ongoing information about how the data is meeting our KPIs. Graham says this is incredibly helpful for the Alliances team, and also comes in handy for communicating to other Concirrus teams and onboarding new employees.
For us, having the absolute best data and ecosystem of partners within Quest is critical for ours and our customers’ success. We know it is the same for you when it comes to selecting your insurtech partners. We hope that by following some of this advice, you will build successful technology partnerships to differentiate your offering, increase profits and reduce your exposure.
Read more about some of our key data partners by clicking on the links below: