What you really, really want

No one would buy a new microwave and only use it as a clock in the kitchen, or pay a monthly mobile phone contract just because they need an alarm clock. And certainly no one would spend £20,000 on a new car just to sit in their garage and listen to the radio. Why, then, would a business invest in a full functionality software system and only take advantage of its invoicing tool?

Many insurance software providers say this is not uncommon in the broking sector - the majority barely scratch the surface of their system's capability. The regular challenges they cite range from prospective clients having the wrong type of software, to not keeping up-to-date versions, or just having an overall lack of understanding about how the system's features can benefit the business.

But brokers are the insurance experts, not the technology experts. So how then do they start the conversation about getting the most out of their software investment?

Ray Vincent, managing director of Transactor, says it starts with identifying what they need their technology to do. "Brokers have to first obtain the right software before even considering how they can best use it. To do this, they have to outline their business objectives and then find a system that can support those aims," he explains.

However, even many of those who understand their business needs operate on the wrong application for their type of business. Often this happens because new company arrivals, though tasked with growing business and driving development, stick with whatever system is in place, even if it cannot accomplish what is needed.

Mr Vincent says there is no reason to settle when information is available free of charge: "IT is just part of the job now and businesses cannot afford to be complacent about it. But there is no cost to doing research and scheduling pre-sales visits with providers, so comparing systems isn't difficult. It just requires proper due diligence and then making a decision on which product is right and worth the cost."

Software providers acknowledge a change in brokers' attitudes towards technology over the past few years, however. They have increasingly taken a more proactive approach, largely because competition and regulation demand it.

In the internet age, consumers and aggregators have changed the way insurance is sold. Mark Bates, managing director of RDT, says that in 1995, no one would have believed so many products would be successfully sold online, but now, people expect it.

He says: "Aggregators have introduced a technology-based model into the insurance industry. They haven't changed the products and aren't offering advice, so they can't replace the broker model, but they have changed the selling process."

The right technology could give brokers a significant competitive edge - especially those competing in highly commoditised markets. When personal lines broker Adrian Flux re-examined its system requirements five years ago, its key considerations were ease of use and adaptability. And the company readily admits that the benefits were well worth the re-assessment effort: not only has it saved on costs by selecting a system that its 400 staff can easily be trained to use, but using software that can be regularly modified and amended means the business can respond more efficiently when its needs change.

Providers also point out that regulation is forcing companies to enhance their ability to capture data and keep records, which has also driven more effective software use. Chester-based broker Astbury Wren says it chose its software provider for just that reason - to assist with regulatory compliance - but adds that since the new system has been in place, the 20-strong company has seen a "significant reduction" in its administration-to-sales ratio and has "saved enormously" cost-wise through process automation. New developments

Although, faced with rapidly changing technology and a stream of new products and services offering "bespoke solutions" with "improved functionality" to help streamline and automate, one can see why it can be difficult to navigate the software selection process, much less make the most of it.

While providers will take different approaches to product design and client consulting, they will agree that they are responsible for keeping customers informed of new developments, offering training and seeking feedback on how their systems perform.

Simon Hughes, Open GI's sales and marketing director, says: "Systems are designed foremost to help increase profitability. When features aren't applied, clients will not benefit from the purpose for which the software was built. It is essential to be aware of how to utilise technology effectively, especially given its cost and investment demands."

Open GI's software, launched in the 1980s, is currently on its 13th release. With every version, close to 100 new features are added, however small. But the company insists that the technology is not particularly complex; it may just be difficult for some because it is so "functionally rich". As a result, the company says it has worked to improve its customer support by offering support guides, web-based training sessions and regional "product clinics".

Acturis' customer support model, the Broker Staircase, is based on monitoring client's usage and offering staged feedback on how they can best utilise the system's features or enhance existing processes.

Simon Ronaldson, Acturis' sales and marketing manager, says it is up to software houses to find out what the client's business needs are and to respond to that with service offerings and support. He says: "There isn't one system out there that is best for all brokers and there isn't a universal way to help clients. Our job in the sales process is to advise based on how they describe their business needs and ensure they aren't just being sold on 'sexy' screens."

To do that, though, he emphasises that it all boils down to them analysing their operations and standard processes and outlining what they want their software to achieve. Brokers are advised to consider companies they admire and areas in which their competitors have an edge.

Lastly, maximising software capability requires accepting associated costs and making budgetary allowances. But Mr Bates assures: "The real cost savings only come when the system is used to the best of its ability. Yes, they come after the fact, but the technology will more than pay for itself."