Cloud computing is boosting even more after the Covid-19 and now has gained insurance companies’ attention. Reason being that it was the flexibility and resilience of cloud services that saved many insurance companies from getting derailed during the negative impacts of the pandemic.
And now, with already under pressure, decreasing productivity gains, flat asset returns, and climbing volume of claims, it’s time for insurance companies to start implementing cloud support solutions on a massive scale. They can significantly capitalize on the benefits if they push more applications and resources into the cloud. Moreover, the costs saved by hiring such companies that provide insurance back-office services (cloud-enabled) can be critical for sailing safely in the post-pandemic economy.
Why are insurance companies opting for cloud computing?
Cloud Computing is revolutionizing the working methods of companies. From accessibility to scale on-demand, payment flexibility, and centralization for easy access, it is providing crucial business benefits to the insurers such as:
- Achieving speed-to-market edge
- Launching new products faster
- Improving risk management
- Ensuring business agility
- Driving innovation with process automation
- Meeting compliance & sustainability norms
Why is this the best time to implement cloud solutions?
Today is the best time for insurance companies to move forward with their cloud plans. The proposition of cloud value is getting stronger day by day. Have a look at these facts:
- The costs of cloud computing are decreasing steadily and have become more flexible in the last five years.
- The cloud service market is growing at the rate of 30% per year for the last five years, and revenues are expected to cross the mark of $410 billion by 2022.
- There also have been considerable improvements in the security measures and regulatory compliances. Cloud platforms are now offering robust defenses and controls to the customers, which are way better than most on-premise solutions. Other than this, customers have now also gained access to other helpful services such as data management and analytic capabilities and rapidly evolving A.I. (artificial intelligence) offerings.
- The cloud service providers are now even looking forward to co-investing their customers’ projects with the aim of accelerating customer’s agenda in exchange for consumption guarantees.
- Hybrid cloud architectures have also started to appear in the picture. They assist companies in working with multiple cloud management services. This allows customers to avoid dependency on only one provider.
Hence it’s time insurers start leveraging from insurance cloud business cloud support.
Reasons why cloud computing is becoming popular among insurance companies
Cloud holds numerous potential opportunities for insurers. They can access insurance-specific applications to build intelligent and cost-effective solutions for their customers. With cloud support, insurers get benefits of:
Insurance companies can utilize the cloud to scale quickly and without making any huge investments. Thus, companies should develop a “cloud-first” mindset and redesign their applications or develop new applications that are cloud-friendly.
II. Everything as a service-
Providing everything as a service through cloud computing will become the basic framework of a company’s digital business platform in the upcoming years. Also, companies that portray everything as a service and not a product can adapt quickly and make better investment decisions.
III. Improving speed to market-
A greater IT agility can be achieved through specifically tailored cloud-computing solutions, which will also require a shorter implementation time. This also allows insurers to provide services at a much faster rate.
IV. Innovation in an effective manner-
Insurers worldwide are constantly under pressure to come up with innovative ideas and keep up with market disruptors. Therefore, the insurance CIOs also mandate that their IT applications comply with the evolving business and market needs. Through the cloud, insurers can deploy new technologies efficiently. It also provides them an ecosystem of allies and strategic vendors so they can develop new products and services for their customers.
V. Accelerating Business Growth-
Insurers can develop and test new business models and get rid of the old models smoothly through the cloud. Moreover, it allows rapid scaling for flourishing new business models. Along with it, cloud insurance solutions ensure improved social listening and higher opportunity conversion rates. Therefore if put, through cloud solutions, insurers can improve:
- Ability to decipher the needs and wants of a customer. Hence, swiftly test, develop and deploy services to meet customer demands.
- Develop targeted marketing campaigns to sell services to the customers.
- Interact with customers and acquire feedback on the current and new services.
And if things are not going as they were supposed to, insurers can quickly throw away the complete process and start again effortlessly.
VI. Reduction in operating costs-
Cloud-based solutions cost less than in-house solutions and reduce other expenses as well, like back-licensing hardware and maintenance of the complex legacy system. However, cost-effectiveness usually depends upon the strategy of the insurer and plan of action.
Through cloud-based solutions, automation can be introduced in certain aspects of the job, like the enrolment process, underwriting claims management, and so much more. This allows insurers to free up time to deal with the customer in a better manner and deliver better and customized solutions to the customers.
VII. Global Expansion-
Insurers that utilize cloud platforms don’t require data centers as the cloud itself is a complete service. Hence, cloud solutions can help those looking to expand their business on a global level across multiple continents. In addition, the cloud’s flexibility ensures that insurers develop international relationships quickly and acquire business from them.
The adoption of the cloud platform is booming. A study conducted of 400 CIOs in 2016 found that 67 percent believe that software as a service (SaaS) can transform the insurance industry in the upcoming five years. However, 20 percent of these believe that this will happen in just two years or less. As we observe the ongoing market situations, we can confidently say that this prediction is becoming a reality.
Insurers may think that adopting cloud support technology can be intimidating, but a planned roadmap and following these four transition steps can make things much smoother:
- Analyzing requirements and establishing clear objectives
- Assigning responsibilities and defining ownership
- Meeting security & compliance concerns
- Incorporating KPIs
Still, if you think implementing cloud support can be hectic for you or you require guidance for it, you can always take the assistance of cloud management services. Many such experienced companies specialize in Insurance agency management services that provide competent services. So get in touch with anyone them, and you will start noticing the benefits in the short run itself.