On June 10, 2022
Insurance companies operate under very specific regulatory requirements. They must meet certain standards, respond to all customer inquiries within a certain period, and are also subject to strict auditing.
Because of this, insurance companies need managed IT services to help them meet these standards while reducing risks and costs. Always-on operations, cyber risk mitigation strategies, and monitoring data usage — are just some of the services you will get when you partner with a managed IT service provider. Let’s go through some pros and cons of working with one.
MSPs Help Insurance Firms Stay Compliant
One of the biggest challenges for insurance agencies is compliance. Any part of the firm that isn’t compliant can put the entire company at risk.
A managed service provider can help agencies stay compliant by offering Managed IT Services. An MSP can help agencies implement technology to remain compliant with KYC, AML, GDPR, and anti-corruption laws. A managed services provider can also help agencies reduce the risk of non-compliance through monitoring and security solutions, data protection and disaster recovery planning, IT asset management, and more.
Managed IT Services Reduce Risk
When customers file claims and interact with your company, ensuring all of this information is secure is vital. You don’t want any information stolen or customers having a bad experience. The last thing you want is to be fined or shut down because of a breach.
A managed IT services provider can help you reduce security risks through various solutions. These include cloud data storage, vendor management, employee training, firewall management, email spam filtering, and intrusion detection. A managed IT services provider can also help you reduce the risk of outages. You will have access to managed services that can monitor your systems 24/7, proactively troubleshoot potential issues, and schedule automatic remediation procedures.
Managed IT Services Help Cut Costs
Insurance companies have a long list of expenses, including equipment, maintenance, staff, internet, etc. This can add up to millions of dollars annually for a mid-sized agency — that’s before you factor in the cost of downtime
A managed IT services provider can help you cut costs in several ways. Some of these include leveraging economies of scale and reducing downtime through proactive maintenance. The average insurance company spends $1.4 million annually on downtime, according to a study by the Ponemon Institute. Reducing downtime can therefore help you save a lot of money.
Insurance companies in Singapore that have chosen managed IT services have seen their costs reduced by 18%, according to a study by Computer Economics of over 400 organizations.
Managed IT Services Offer Always-on Operations
One of the biggest challenges for insurance agencies is keeping the lights on. When you own your equipment, you must ensure everything is always working. When something goes down, you must find out what’s wrong, how to fix it, and how long it will take.
By working with a managed services provider, you will have access to always-on operations. This includes 24/7 monitoring, proactive maintenance, and systems that can scale on demand. This includes patch management, antivirus updates, and system updates. A managed IT services provider can also help you avoid sudden outages by monitoring your systems 24/7 and identifying potential issues before they can cause problems.
How To Find an MSP For Your Insurance Agency
When looking for an MSP, make sure you have a clear understanding of your IT needs. These include understanding your current IT infrastructure, the challenges you are facing, and the goals you want to achieve. Once this information is in place, you can search for an MSP. Here are some tips on how to choose the right MSP for your insurance agency:
- Find an MSP that understands the insurance industry. Not all MSPs are created equal. Some have in-depth experience with the insurance industry and can provide you with the IT support you need to succeed. Make sure that your MSP has experience working with insurance agencies, understands the challenges you face, and knows how to help you thrive.
- Find an MSP that offers flexible services. Your managed IT provider should be able to adjust their services based on your needs and requirements. They should be able to offer a wide range of services, such as network management, cloud backup, remote monitoring, and disaster recovery plans.
- Find an MSP that offers 24/7 support. You never know when an IT problem will arise at your agency – and it is essential that your MSP is available 24/7 to help you resolve issues as quickly as possible. Ensure that their service includes an on-site technician and remote access via the internet.
- Find an MSP that offers a wide range of IT support services. There are many different services that your MSP can provide, including but not limited to: network management, cloud storage, data backup, and disaster recovery plans. Make sure that your MSP provides the services you need at an affordable price.
Insurance agencies rely on technology to do business. And with more and more customers opting to file claims online, agencies need technology that can keep up with demand. A managed IT services provider can help agencies reduce risk, cut costs, and offer always-on operations.