Why Reference Checks Matter When Choosing Actuarial Services

When you're in the market for actuarial software or consulting services, checking references is a step you can’t afford to skip. The decision you make will impact your company’s financial health, regulatory compliance, and overall efficiency. Here’s why taking the time to check references is invaluable:

1. Insight into Real-World Performance

Marketing materials and sales pitches can only tell you so much. References provide you with an unfiltered look at how the software or consulting service performs in real-world scenarios. You’ll hear directly from other companies about their experiences, challenges, and the effectiveness of the solutions provided. This firsthand information can reveal strengths and weaknesses that may not be evident in promotional content.

2. Understanding the Implementation Process

Implementing actuarial software or integrating consulting services is often complex, involving various stages like setup, customization, training, and ongoing support. References can shed light on how smoothly this process went for other clients. Did the provider meet deadlines? Were they responsive to issues? Did the team have the experience and expertise touted in marketing materials? Knowing these details can help you set realistic expectations and avoid potential pitfalls.

3. Evaluating Long-Term Support

Actuarial needs evolve, and what works today might require updates or changes tomorrow. References can give you an idea of the provider’s commitment to long-term support. Are they proactive in offering updates or improvements? Do they provide reliable customer service? These insights are crucial for ensuring that your chosen software or consultant will continue to meet your needs over time.

4. Assessing Cost vs. Value

While cost is always a consideration, understanding the value of what you’re getting is equally important. References can provide context on whether the pricing is justified based on the results achieved. They can help you determine if the investment will yield the desired returns or if there might be hidden costs to consider.

5. Identifying Red Flags

Checking references can help you identify any red flags before committing. If multiple references mention the same issues—such as poor communication, lack of expertise, or difficulty with the software—it’s a sign to proceed with caution. This due diligence can save you from costly mistakes and ensure that you’re making a well-informed decision.

6. Ensure You’re Speaking to the Right Person

Finally, it’s crucial to confirm that the reference contact you’ve been provided is the right person to interview. You want to speak with individuals who were directly involved in the project to verify a company’s references. These people will have the most accurate and relevant insights into the performance and effectiveness of the software or consulting service.

The actuarial space is a close-knit community, so don’t hesitate to reach out to other contacts you may know at the reference company. This can give you additional perspectives and a more comprehensive understanding of the provider's capabilities.

In the actuarial field, where precision and reliability are paramount, choosing the right software or consulting service is critical. Checking references is a powerful tool in this process, offering you a clear picture of what to expect and helping you avoid potential risks. A company should be proud of the work they have done and eager to provide references verifying this information. Don’t skip this step; it’s key to making a decision that will support your company’s success in the long run.