Cloud is widely recognized as one of the most transformative technologies for businesses today. From modernizing operations and simplifying data access to preventing fraud and improving service quality – cloud computing offers endless benefits. And, for the insurance industry, cloud adoption is here to stay. Even though the overall sector has been slow in adapting technology to transform its traditional ecosystems – cloud services help insurers to improve underwriting, claims processing, fraud prevention, customer services & business operations.
This article explores how cloud adoption in insurance can help transform traditional ecosystems into customer-centric & data-driven business models and why now is the time to embrace the cloud.
If you are someone who is yet to consider and wants a bigger picture of how the cloud can help your business, and what challenges it helps solve with key cloud players, then this article is for you!
Mckinsey’s recent report suggests, EBITDA (earnings before interest, taxes, depreciation and amortization) run-rate impact of the cloud on the insurance sector will be $70-110 billion by 2030.
Below are 3 key trends that are pushing insurers to adopt the cloud:
Many institutions prefer the comfort and familiarity of legacy technology. Even though they are aware that the modernization of enterprise systems and software would enable them to leverage the benefits of increased performance and competitive advantage. Also, there exists plenty of other justifications that organizations cling on to prevent or delay system upgrades.
Some of them include;
Your cloud migration partner can help implement a strategy of continuous improvement for your tech stack.
We can help you develop or enhance new cloud capabilities as per your business goals.
Cloud computing in the insurance industry has matured significantly over the past decade. It has expanded tremendously to include a massive ecosystem of services and tools that efficiently address major business problems. AWS & Azure today offer more than 200 services with limitless storage to support AI, ML & analytics services.
Here are some key benefits of capitalizing on these modern cloud platforms:
Despite the challenges, many insurers are moving to the cloud because of its benefits in areas like analytics, system modernization, data storage, and more. Here are a few real-world use cases of benefits leveraged by insurance companies with cloud adoption:
How a major UK-based general insurance provider leveraged Azure to take its insurance processing from days to minutes
A leading general insurance company was in the pursuit of a comprehensive solution to be built over mobile and web mediums that enables the submission & management of insurance claim requests. Further, there was a dire need for a common collaborative platform that connects customers, insurers, and claim assistant companies seamlessly to manage the transparent flow of policy information.
This issue was addressed with the development of a cloud-based platform that simplified the claims process and helped save time for the policyholders.
It keeps their customers updated on their claims in a secure ecosystem, offers insight to insurers, and helps the insurance company to build customer loyalty. Automation of the claim settlement process enabled the insurance carrier to:
Leveraging Microsoft Azure’s cloud hosting service, the insurance provider dramatically reduced the insurance processing time from days to minutes!
How Cloud Migration Enabled a Leading Dutch Insurer to Cut Infrastructure Costs by More Than 50%
A health insurance company’s premium calculator attracted at least 12,000 users daily for only two months in a year. This yearly cycle meant unnecessary payments for infrastructure and server capacity that remained unused for the remaining 10 months. The spike in online traffic exerted immense pressure on the digital infrastructure throughout November and December.
Additionally, with more and more policyholders turning to the digital platform, the peak in traffic would only grow.
To cope with this, the company was looking for a more cost-efficient and scalable alternative to hosting. Moving the application to the cloud made sense and it empowered the insurance carrier to:
By migrating its calculator app to Microsoft Azure, the insurance company unlocked its capability to scale infrastructure on demand and reduced hosting costs. The move was well worth the effort and proved to be highly profitable.
While there’s no definitive answer: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) have apparent pros and cons, so the choice boils down to the specific requirements of your business.
Though, while selecting, do keep in mind the following;
Each of the three cloud platforms AWS, Azure & GCP is unique in its way. They offer a plethora of options for organizations to select from based on their specific requirements. From our experience, Microsoft Azure has usually been a go-to choice of big market players with Windows integration requirements, while AWS and GCP are preferred by SMBs (primarily US-based ones).
Drawing on over a decade of cloud experience, we can help you define your expectations in terms of operational efficiency & enable swift adoption of new cloud technology in your insurance processes. We follow a proven approach for assessing, developing, deploying & integrating modernized technologies in ways that ensure the optimum use of your existing resources. We work with you to understand your needs, modernize legacy apps, seamlessly navigate your migration journey, and build solutions that leverage the right cloud tools and services for optimal business outcomes.
Explore our capability around how as service partners for AWS (Amazon Web Services), and Microsoft Azure, we offer app development & modernization along with consultation, cloud-managed services & migration. We can help you make the most of serverless cloud computing so you don’t have to go through the hassles of provisioning & configuring servers. From helping you improve your database scale to developing new cloud-based apps, we will help you navigate your cloud migration journey with an incremental approach.
To conclude, a move to the cloud may seem costly for insurers. In the distant future, it would drive the way for businesses. Forward-thinking organizations that will embrace it early will have an added advantage. Those who are reluctant to this change may later struggle to match their competitors.
Rishabh Software has extensive experience in implementing custom solutions for the cloud in the insurance industry that are tailored to meet the company’s dynamic needs. We can build custom cloud solutions to automate your business operations, enhance customer experience and lower your overheads. You can count on our experienced team, equipped with a comprehensive technology stack to help you capitalize on opportunities with the cloud.