Best Practices for Implementing New Technology in your Insurance Agency  

By: Michael Cruz
Agency Principal of Foresight Insurance, LLC 
COO of Virtual Intelligence

How should an insurance agency assess its need for new technology? 

 Before an agency embarks on the journey of assessing new technology, the first step is to establish the agency’s standards and procedures. Many agencies make the mistake of pursuing the latest technology and then struggle to integrate it into their operations. Instead, the focus should be on strengthening foundational standards and procedures. Once a solid operational base is in place, technology solutions can be sought out to address needs and enhance existing processes. This approach ensures that technology is used as a tool for improvement rather than becoming a distraction. In my opinion, many agencies reach a point of diminishing returns by adding too many technology tools. We’ve reached a point where less is more with technology.  

What are the best practices for training staff on new systems? 

One of the best practices I recommend is to use every available tool to effectively train staff on new systems. Whether it’s the agency principal or a team member who needs to learn the product, I recommend hiring professionals to help set it up and teach the team how to maximize its potential. Many agencies tend to use only a small fraction of the features that tech tools offer. To counter this, I suggest creating walkthrough videos and written procedures that outline the agency standards and procedures for using the tool. This approach ensures clarity, consistency, and uniformity in how everyone uses the system. 

 The next step is to conduct hands-on training sessions during team meetings to ensure everyone is on the same page. For those needing additional support, provide one-on-one coaching. Finally, perform spot checks to ensure the tool is being used correctly and as intended. This step is crucial but often overlooked due to time constraints or forgetfulness. By incorporating spot checks and personalized coaching, you can ensure the effective implementation and utilization of new systems. 

 At the end of the day, it’s important to remember two key points. First, the agency needs to evolve, and adopting new technology is a part of that evolution. Second, while the team may not always agree with the decisions on new technology, they need to trust the leadership team and give new tools a fair shot. These tools are added to the agency to make the team’s lives better and to improve the operation, so it’s essential for everyone to be on board and willing to adapt. 

What steps should be included in a technology implementation plan? 

When implementing technology, it is important to proceed slowly and strategically rather than making decisions based on excitement. Introducing a new tool to the agency creates disruption, additional labor, and a learning curve for the staff. Therefore, it is recommended to document the needed features, maintain a checklist, and take notes to ensure that the technology meets the agency’s needs. It’s essential to write down the pros and cons, as it’s easy to forget information, and having thorough notes helps in making informed decisions. 

Involving key team members in the decision-making process is crucial, as it helps in gaining support from those who will be using the technology. Providing advance notice of the intentions allows for any questions or concerns to be addressed, which contributes to a positive attitude about the change and helps in gaining support from the team. 

 After making a decision, it’s important to fully commit and put in 100% effort to make it work. It’s normal to face challenges and experience a learning curve, which can lead to initial frustration for everyone. However, it’s important to remember the reasons for implementing the technology in the first place and not give up too soon. 

How important is it to have a clear timeline and milestones for technology deployment? 

 Establishing a clear timeline for implementation and making sure the team has the support needed to facilitate a smooth transition is crucial. The deadline helps the team prepare mentally and creates the expectation of when this will be completed. There needs to be a sense of urgency because people will not want to change on their own. 

How can agencies effectively engage stakeholders (e.g., staff, management, customers) in the technology transition process? 

 It all begins with including the team in demos and holding strategic meetings afterward. Leadership and staff should listen to the demo with an open mind. This is the best way to get buy-in from key players, making implementation much easier for management. 
 

What factors should be considered when selecting new technology for an insurance agency? 

 Here are some important factors to consider when selecting a new technology partner for your agency: 

1. Compatibility: Ensure that the new system can integrate with your current technology to avoid the need for double data entry, which can lead to extra work and data integrity issues. For example, we found the compatibility feature in Risk Advisor to be very helpful, as it connects with our CRM.
2. Scalability: It’s important to assess whether the system can grow with your agency, even if you’re currently a single-operator agency.
3. User-Friendliness: The system should be easy for your staff to use. If it’s difficult to use, the staff will not want to use it. 
4. Security: Since our data is crucial and includes sensitive information, it’s essential to ensure that the vendor has implemented necessary security measures to protect the data. Additionally, consider whether the vendor would make it difficult for you to switch platforms and access your data.
5. Vendor Support: It’s important to consider the vendor’s level of support and training. A strong support system is crucial when technology issues come up.
6. Cost: Evaluate the total cost of ownership, including implementation, training, and maintenance.
7. Feedback and Reviews: Look into feedback and testimonials from other users in the industry to gain insights. Additionally, consider using products that are popular within your network to facilitate knowledge-sharing with other agencies.

How do you determine who is responsible for implementation and how an agency owner holds them accountable? 

In my view, leadership should take the lead in implementing new technologies, even if it’s at a higher level. For smaller agencies, the principal is usually responsible for this task. However, you can still ask other team members for help with different parts of the implementation, such as testing, training, providing feedback, and creating agency procedures related to the technology. 

For larger agencies, it might be beneficial to consider hiring a fractional Chief Technology Officer (CTO). Sometimes, agencies waste time and resources by having non-technical staff try to figure things out, rather than hiring a professional who can complete the job more efficiently and effectively. Your staff should be doing high-value tasks that they were hired to do, such as writing new business, and/or educating customers on insurance coverage.