Skip to main content

Eight Reasons Why Insurance Companies Should Move to Cloud

The Insurance and financial services industry is in a state of continual transformation. Rapidly evolving customer expectations, rice of digital platforms and increasing regulatory demand and Data privacy, requires a swift response from Insurance companies to ensure profitable sustenance. To function effectively in a customer-driven environment, business agility has emerged as a key imperative for all industries including Insurance. Cloud is disruptive technology that can help organisations gain the required agility as they strive to reduce costs, drive innovation and streamline operations. Cloud eliminates the need for heavy infrastructure investments and offers flexible operating models which enables the business to enhance its agility and increase its market responsiveness.

Recent threats and frequent cybercrimes have provoked the insurance sector, dealing with large amounts of sensitive data, to be at the forefront of integrating cloud technology into their digital eco system. It enables insurers to reuse their IT resources more efficiently, reducing the cost of acquiring and maintaining infrastructure. Cloud based platforms, storage and applications change the way of creating and delivering their products and services, managing risks and claims, collaborating with partners, and communicating with customers, agents and brokers.

The main reasons why insurance companies use Cloud-based solutions include different factors such as security and flexibility, rapid provisioning, better asset visibility, and robust data governance facilities. But that’s not all – let’s have a look at some of the top reasons for of cloud adoption in the insurance industry:

1. Improving operational efficiency and performance

Private cloud improves the operational efficiency and performance of the insurers by ensuring data security and accessibility to its employees in low risk and efficient way. While public cloud helps insurers to reduce cost by ensuring the availability of data and services to the customers and external networks. Cloud is much more than infrastructure, insurers are now exploring the levels to which cloud can lead to. Starting from infrastructure to platform to process, cloud expands its opportunities in business process solutions such as claims and expenses processing, managing a whole business process unlike traditional BPO.

2. Improving speed to market

Having in mind the greater pressure to reduce the time to market for new products and services, insurers can use insurance-based cloud computing solutions to deliver greater IT agility and shorter project implementation time. Cloud‑based benefit enrolment systems can thoroughly automate the enrolment process to support real-time pricing and validation of eligibility, allowing insurers to deliver a more convenient and personalized way to shop for benefits.

3. Faster Deployment

Unlike the traditional IT services Cloud computing takes a short time for deployment. It allows businesses to leverage their services and functionalities in a short time. Cloud has more than sufficient resources available at its disposal to allow for multiple tenants in the shared environment. These resources are always scalable.

4. Simplified Access

Simplified access is one of the most vital reasons of using the cloud-based system. The insurance companies, while leveraging the cloud-based solutions, could gain immense benefits. With Identity and Access Management, the companies can enjoy a single sign-on facility that makes the working easier and simpler. Furthermore, all the user’s access rights are controlled by their status and as soon as someone leaves the organization, his or her accessing rights are be removed automatically.

5. Advancing business growth

Cloud-based services offer the users a more holistic view and help them to understand consumer needs better. Cloud-based solutions can provide better social listening and higher conversion rates from opportunity to sale through targeted campaign management and improved opportunity and lead engagement models. This could result in higher cross-sell, upsell and retention rates. Cloud can also enhance the claims experience by providing better service and better communication with end customers.

6. Driving customer centricity

In addition, cloud technologies drive customer centricity with data unification, allow products and services reach market faster and improve the renewal process with external systems. Insurance brokers have the opportunity to embed broker management system modules to advise insurance to customers through various websites and portals. Cloud based collaborative tools allow advisors to answer questions on products and services round the clock and independent of geography. Besides, it encourages unified interactions within the distribution channel.

7. Effective Innovation

Nowadays every insurance company wants to innovate and offer new things to outpower other agencies. In such a situation, cloud-based solutions could help them to stand out from the competitive market by fitting and meeting the emerging needs of the customers. Furthermore, with the cloud-based systems, the insurers could quickly test and deploy new technologies and robust solutions very efficiently.

8. Streamlined Operations

Thanks to the reliable features and functionalities, Cloud-based solutions help the insurance agencies to reduce their overhead costs and streamline their business operations. The insurers could seamlessly free up the room in their budget and could help the employees to focus on other vital things. Whether you the insurers virtually communicate with their customers, or deploy new systems, cloud computing always makes sure that all these functions are quicker and more comfortable.

As a conclusion, we can say that cloud computing has become an essential aspect of the global environment, because it helps the companies to secure not only their data from breaches and cyber thefts but also provides flexibility in managing that valuable data. With cloud computing, the insurers could seamlessly identify new trends and could deploy new systems satisfying the emerging customer needs.

How Cloud Security Enables Innovation and Security in the Digital Age (Part 1)

Nowadays security technologies such as IoT, Big Data, Artificial Intelligence, User Behaviour Analytics, Cloud Computing are on the rise. Rapidly changing customer needs force firms to adapt and create new business models. More and more companies choose to implement cloud systems, because of the rising number of digital identities rises and the rising need to protect and manage how personal information is collected, used and distributed.

Cloud based applications are convenient for different types of businesses and at the same time enable secure data management, analysis, and access from anywhere. Businesses that implement cloud computing, report improved security, efficiency, agility and scalability.

Agility

Companies should regularly reinvent their business models and when using Cloud systems, they are provided with the required infrastructure, platforms and computing abilities that helps them stay agile and ready for a change.

Security

Cloud offers increased protection at each layer from threats such as data breaches, disasters, and system shutdown. 

Efficient collaboration and flexibility

Cloud computing gives the business the flexibility to share files or data, from different devices, with the people across the world.

Cloud systems also play a crucial role in marketing activities, bringing the following benefits to marketing teams:

1. Superior Customer Experience

Cloud business model helps marketers to offer a superior customer experience. Not only because of the single sign-on convenience, but because of the unified cloud infrastructure, as well. It allows marketers to easily access and share their files, both within the team and with clients. That makes the collaboration and communication easier and more effective than ever.

2. Improved Analytics

The cloud makes it easier to track leads, customers and prospects by the use of CRM system. Marketers have the ability to test new channels, and to determine which elements of the marketing strategy worked well and which not.

3. Innovation

With improved accessibility, collaboration, and analytics, marketers can focus better in understanding customer needs and their pain points, consequently they can spend more time creating innovative campaigns to connect with customers and respond their requirements.

Beside this, there are some examples for successful marketing activities in the cloud. One of them is IBM Digital Marketing Network in the cloud. It provides customized dashboards, allowing marketers to integrate new marketing services, to view how their marketing campaigns are performing through the different channel thanks to real-time analytics to any marketing service such as Google Display Network, Doubleclick Search, etc. This is an efficient way to improve customer engagement and responses.

The next successful example is Amazon Web Services. AWS is a cloud computing solution that allows millions of customers to build applications with increased flexibility, scalability, security, and reliability. A lot of marketers use Amazon Simple Email Service (SES) which provide the software for doing e-mail campaigns. In this way they can easily send email communications to large numbers of customers, and prospects.

Moving forward to Hybrid Cloud

As cloud computing becomes mainstream, many organizations prefer their IT environments to include public and some private cloud. Most of them believe that exactly the combination of clouds ensures robust cloud governance model.

Hybrid plays a key role for organizations that want to successfully manage data access between private networks and public clouds. And this interconnection acts as the bridge to securely and directly connect cloud service providers and enterprises. In this way the companies will be able to continue their business transformation journey and develop deeply innovative and business models for future growth.