Cloud Computing as a concept has had a huge impact across all the sectors with improving the business processes, offering production dynamics, and strengthening the relationship with customers, users, employees, and suppliers. It has had a huge impact on the industry, with benefits related to internal processes, new customer acquisition, and policyholder loyalty. And, it quickly becomes an integral part of the insurance sector. 51 percent of insurers believe it offers an advantage over rivals.
Then there’s also the fact that spending on cloud services is expected to grow by 23 percent this year. In fact, 51 per cent insurers believe it offers an advantage over rivals. Then there’s also the fact that spending on cloud services is expected to grow by 23 per cent this year. But surely, it is not the stats that are driving the popularity of cloud computing in insurance? Of course not; so, here are some of its key benefits as well.
- Personalized user experience: IT ensures access to data for systems and employees, thus enabling better analysis of customers’ expectations to deliver tailored offerings.
- Cost-effective: Based on subscription-based models, cloud computing is more cost-effective.
Allow us to help you brace for the change with, first, an overview of the challenges associated with computing in the insurance industry.
- Legacy solutions: It is a given that insurance providers have been using some system so far, yes? Save for some, most companies in the sector are still using archaic, legacy systems across their operations that are home to a world of the invaluable company as well as customer data. Hence, it is imperative to also account for tools one will need to successfully access and transfer said data to new systems.
- Cost: There is no denying that switching to cloud computing is a cost-heavy exercise. Now, even if companies are prepared to bear this cost, what they often fail to account for is that there are also other tangential costs associated with such an endeavor.
- Complexity: The fact remains that a whole lot of insurance companies are quite used to their older systems, which may appear to be much simpler to use and retain as compared to the proposition of switching to newer, modern systems. Such hesitation about the technical complexities associated with the use of the new system can prove to be a major roadblock to the adoption of cloud computing.
Now, time to take a look at some best practices to keep in mind while migrating to the cloud.
- The first, and most important step, in this journey to cloud computing must be the analysis of the company’s current setup and applications. This step will help determine not only the precise extent of integration required but also find the right cloud services.
- Yet another critical point to keep in mind before you kick off the transition to cloud computing is to make sure that the requirements and expectations from the cloud computing systems are defined clearly and beforehand. It would also help to also decide how the company intends to measure performance once such a system is in place.
- One would think this is a given, unfortunately, a lot of companies end up ignoring this particular aspect of the transition: choosing a cloud service and development partner. We cannot insist enough to make sure that you check out reviews of the service providers, speak to other clients, evaluate their ability to fulfill obligations, take demo of their services, etc.
The insurance industry digital transformation may seem like a complex endeavor at the outset and perhaps there is indeed some truth to that widely held belief. However, with the right strategy, tools such as cloud computing, and guidance, transforming your insurance business and bringing it up to speed with the modern-day digital realm can be quite a simple process.