Beyond promises and features: getting insurance technology right
- 1 day ago
- 5 min read
What really matters when you're choosing your next tech tool
Like anyone in our industry, my days are full of conversations about tech: what’s here and what’s next, and I love it.
There’s no doubt that these developments create all sorts of exciting possibilities for insurers, brokers, MGAs and other stakeholders with their potential to transform how businesses operate, make better use of data and create new growth opportunities.
But in the conversations that I have with delegated authority colleagues, customers and other industry figures, one ‘yeah but’ comes up time and again. Before any organisation can truly benefit from new capability, they need absolute confidence in the underlying foundations.
In our area, that’s data integrity and accuracy, and high-quality reporting. Whether for bordereaux, Consortia, Treaties, SOWs or bulking lineslips, these are non-negotiable fundamentals. Without them, even the best new technologies will have a limited impact.
Why the fundamentals matter for insurance technology
It’s easy to be captured by the excitement of new features and possibilities. The boring truth, though, is that the most successful digital transformations don’t happen just by adding more and more capability. They start by ensuring the fundamentals - the foundations - are in place.
Any platform can have a list of impressive features and of course every provider wants to show off what their technology can do. But I do know of organisations investing in tools that promise x, y, and z - those advanced capabilities and the end results everyone wants - but that don’t properly address the a, b, c - the underlying data, and foundational processes. And even cases where the promised features don’t exist at all.
This is particularly important in our industry where critical decisions that impact businesses and customers rely on accurate risk and financial information moving smoothly and safely through complex processes and across multiple parties. There has to be absolute trust in the tool, in the data, in the process and in the result.
AI is only as effective as the data behind it
The needle-mover is, of course, AI. Like every other industry, insurance is only going to see its influence grow beyond the existing use cases - supporting teams, identifying patterns that improve risk forecasting and helping businesses make better use of the large quantities of claims and financial data.
But - and it’s a big but - AI does not remove the need for good data. If anything, it makes the quality of the data even more critical because the value of its output depends entirely on the accuracy of the information it’s given.
Any efficiency savings or business benefits promised by AI rely on accurate data so if your new AI tool is producing its output on poor data and reporting, it’s potentially amplifying existing problems rather than solving them. Adding AI capability before putting solid data foundations in place is putting the cart before the horse.
For any industry buyer, the answer isn’t to be sceptical of AI. But it is OK to be curious and ask questions. Don’t always take AI capability claims at face value - really understand what it is that the AI is being tasked to do and whether its promise and value can be delivered in your context. Of course, you’ve also got to be completely confident that the data being fed into the AI is correct in the first place.
AI has a critical role to play as DA business continues to grow but only when the fundamentals beneath it are secure.
Integration that improves the data behind decisions
Tool and platform integrations are another area that can heavily influence buying decisions, and rightly so. Modern SaaS platforms should be able to connect with other systems and allow data to move quickly, accurately and securely across the value chain.
At Amarillo, we’re proud of the integrations we’ve built into Fusion because we see how they improve our clients' operations and increase value.
However, it doesn’t matter how seamless a platform’s integration is if the quality of the data at the heart of it is poor. It just means that errors and the time needed to resolve them are spread across more systems and more teams. A successful integration should simplify processes, not add more complexity.
System or tool integration is one of the areas where I think we, as an industry, see the most examples of over-promising and under-delivering. There is a huge difference between a genuine API connection of compatible systems enabling smooth, accurate data flow and ‘integrations’ that are sold as such but which, in reality, have intermediate, sometimes manual, steps that add rather than reduce risk.
Understanding these details and doing full due diligence on the promised integrations is vital for any buyer.
Collaboration creates stronger outcomes
Of course, within delegated authority operations, better data doesn’t just benefit one participant in the chain - it benefits everyone. Once other members of the value chain can see the benefit and value that standardised, accurate data brings one party, it becomes a no-brainer to adopt the same template - so the value multiplies. It’s a virtuous circle.
An added bonus of this, especially for smaller MGAs and brokers, is that with data they have confidence in, it makes it easier than ever to demonstrate the value they bring to carriers, building trust and confidence further, and propelling further growth.
We’ve seen that first-hand with one of our MGA customers, GSU. Having experienced the benefits of Fusion through a reinsurer in their value chain - eliminating discrepancies, and improving the quality of their bordereaux data - they recognised the value of adopting the platform themselves.
Becoming a customer themselves has meant that they are now able to extend those same advantages to other partners, which multiplies the positive effect they experience, and creates a stronger outcome for all stakeholders. What benefits one benefits all - the rising tide really does lift all ships.
Starting growth with the right foundations
At Amarillo we’re genuinely excited about the future of insurance technology but one thing we consistently say in the conversations we have across the market is that sustainable progress only comes from getting the fundamentals right.
Accurate data and reliable reporting aren’t the end goal - they are the foundations that make everything else possible. When businesses can trust the information in front of them, they are in a much better position to make those better-informed, more profitable decisions and embrace innovation.
That’s why improving the quality and flow of delegated authority data is central to everything we do. With these foundations in place, organisations can confidently adopt new capabilities knowing that they are building on something solid rather than just adding another layer of technology.
Looking for better quality data for your bordereaux, bulking, lineslips, Treaties, Consortia and SOWs? Speak to a member of the team or book a demo to see how Fusion can help.
