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Mar 17
Three Questions to Ask Technology Partners about Client Data

In the insurance industry, client data goes through many different touchpoints, and ownership of it has long been in a tug-of-war between multiple stakeholders: the client (whose information it is), the agency (who collects it), the carrier (who produces policy data), the management system (which stores it), and other third-party technology vendors (who access it). 

Client data is one of the most valuable resources agencies have, and they often don't realize they're sharing or even signing away ownership of it to the technology vendors they use. Many of the largest agency management systems and technology providers are being bought out or given investment capital by private equity and big data companies, who spend billions to acquire the aggregated data of the agencies that use them. 

So, what can your agency do to make sure the technology providers you work with aren't taking advantage of the data you've collected? It's your duty to advocate for your agency's ownership of data. “Your agency's data belongs to you until you grant that ownership to another party," says Sean Hawkins, Chief Product Officer of HawkSoft agency management system. “Make sure you choose partners you trust to keep your data safe and to keep your data yours."

Here are three important questions we recommend you ask when considering an agency management system or any other technology platform that will house or access your client data.

1. Does the agreement give the vendor ownership of your data?

Most vendors will require you to either sign an agreement or accept their terms and conditions in order to use their product. Before accepting any agreement with a vendor, make sure you understand whether the vendor is entitled to share, sell, or otherwise use your agency's data without your consent

Also consider who owns or has a stake in the company, and what their motivations could be. If the company has outside investors or has changed ownership recently or many times in the past, the scope of the product and the agreement may change in the future as well.

2. Is your data tethered to the system if you decide to leave?

True ownership of data means it's not trapped in one system—an agency should be free to change systems if necessary, for their business. But vendors often make it difficult for agencies to leave by locking them into long-term contracts and making it costly and time-consuming for them to get a copy of their own data, sometimes charging thousands of dollars in data extraction fees and taking months to provide the agency with a copy of their own data when they leave. 

Here are some factors to consider when looking at a system:

  • Does the agreement specify a minimum term of use? 
  • How much notice are you required to give before leaving? 
  • Can you create a backup of your data in the system at any time?
  • How much does the vendor charge for providing a copy of your data if you leave, and how quickly will they provide it?
  • What format is the data provided in, and is it easy to manipulate or convert to another system?
  • If you are bringing past data to a new vendor, how much will they charge to convert the data, and how long will it take?

3. Does the vendor allow you to integrate your data with other platforms? 

Another important part of data ownership is the ability to connect your client data with other systems that help you run your business, such as marketing automation, review management, raters, and more. One of the best ways technology vendors can facilitate access to client data for other platforms is through API integration. Vendors who offer API integration with a variety of systems demonstrate that they are committed to meeting all the needs of an agency—not just the ones solved by their product. 

The quality of a vendor's API partners is just as important as the quantity offered since the partner will be accessing your policyholders' data too if enabled. Look for vendors who thoroughly vet their partners and hold them to data practices that are fair to the agency.

HawkSoft's Business Development Coordinator, Kenny Hendricks, who drives the company's Partner API program, says “The single most important aspect of my job is ensuring we partner with vendors we can trust, who are committed to respecting an agency's ownership of their data as much as we do. Agencies should take the same care in vetting vendors themselves."

Data is Value

Data ownership is an area where it's imperative for your agency's values to align with those of your technology partners. Finding partners that respect your agency's data can mean the difference between maintaining ownership of one of your agency's most valuable assets and giving it away for free.  

Author: HawkSoft
Since 1995, HawkSoft is a leader in management systems for independent insurance agencies that want effective workflows and a delightful experience for staff and policyholders. HawkSoft offers the following promise to insurance agents: your investment in HawkSoft will pay for itself in the first year. Learn more about HawkSoft's unique father-and-son story here.


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