True story: Once upon a time, a third part administrator hired an IT staff and tasked it with building a comprehensive system that automated and integrated all current TPA business functions. The goal: to consolidate customer data, field nurse case information, and claims processing information into one central repository. The product took six years to build and two years to test. By the time the system was launched, the TPA staff transitioned from one legacy system right into another. While the systems were indeed consolidated, the trouble of sending and receiving data from the company’s automated system to the clients’ newer, more efficient systems caused no end of IT woes and workflow interruptions.
It’s a common mistake – companies, in an attempt to save money, take the development and maintenance of their technology in-house. And for a while, it may work. But the cost savings that companies chase rarely, if ever, come to fruition thanks to the increasing complexities of technology and the demands on staff to keep ahead of the technology curve.
It’s the same for insurers in the property and casualty space. Insurers want affordable automated system options and unparalleled technical support. Yet creating, and then maintaining, customized automation that responds to all aspects of the P&C business is detailed, time-consuming, and oftentimes impossible for the in-house staff to pull off effectively. In some cases, IT teams build and test business systems that become obsolete shortly after launch.
That’s why outsourcing your technology solutions makes sense. When choosing a company, look for the following:
- Specialty in your business area
- Products and customization options that respond to your business requirements
- Knowledge of your industry and all regulatory requirements
- Scalable solutions and web-based platforms
- Full-scale automation that integrates all your business processes into one solution
- Rate filing support
- Technical support
Choosing a company such as Cover-All Technologies to customize and maintain your technology frees you to do what you do best – conduct business. Remember: in-house solutions are not an automatic cost savings. In many cases, they can be a burden that negatively impacts your profit margin.