Make no mistake about it, if you own an insurance agency or you own your own insurance company, it can get quite expensive. Now, what makes it expensive is the compliance.
Making money in the insurance industry is actually pretty straightforward. You only need to hire salespeople who can convince customers and prospective policy holders the importance of being properly insured.
Now, if you hire the right group of salespeople, they can do this in their sleep. They would know who to approach, they would know how to pitch the product, and they would know how to get people to sign on the dotted line.
At the end of the day, it’s all about getting as many people to sign on the dotted line for insurance policies because once you get people to sign up for these policies, the premiums come in. Quarter after quarter, year after year, decade after decade. It is no surprise that insurance companies are very wealthy.
Indeed, for many insurance firms, the problem is not how to make money but how to invest the money. I know this sounds like a crazy kind of problem to have but this is exactly the tight spot many insurance companies find themselves in. How come? By law, they cannot invest their assets in anything that has too much risk. Accordingly, for the most part, many insurance companies and issuers are barred from investing in the stock market. That takes out one of the biggest providers of high return investments.
Not surprisingly, many insurance companies park their huge assets into real estate. It is no wonder that in many large metropolitan areas in the US, the biggest buildings tend to carry the name of the insurance company that owns them. Funny how that works out, right?
Now, unfortunately, there are some limitations to that, namely the kind of investments you can park your money in. Because you have to remember, by law, you have to have a reserve amount of money just in case people make claims.
The whole point of insurance is that when something happens, people make a claim and you make them whole. Or, in the case of life insurance, you give them the value of the life insurance they signed up for.
But outside of those legally mandated investment restrictions, your costs are also impacted by your software development. It can get quite expensive, even with outsourcing to places like India and the Philippines.
This is why a lot of companies decided to outsource through nearby countries in Eastern Europe like Romania. One particular company, dotNear, has made quite a name for itself in nearshoring because it delivers solid value and consistently meets clients’ expectations.
You might want to consider getting your insurance website as well as the software powering your website and other types of legacy software crafted with care by dotNear.