Other parts of this series:
The adoption of cloud solutions among North American insurance companies is increasing at an accelerated pace, as insurers move applications and data into the cloud in response to changing business conditions. Both property and casualty (P&C) and life insurance companies are leveraging the cloud to:
- Increase agility
- Realize technology operating efficiencies
- Reduce operating costs
- Attract new talent
Now, North American insurers are turning the cloud into a true business asset by using it to access new and disruptive technologies and to differentiate themselves from competitors.
The big opportunities of moving to the cloud
The public cloud offers North American insurers the benefits of utilizing an infrastructure as a service (IaaS) platform while adopting a comprehensive strategy that leverages emerging and insurance-specific solutions available on the cloud such as:
- Analytics for underwriting and risk profiling
- Intelligent automation (IA) for claims processing
- The internet of things (IoT) for monitoring risk
Potential benefits from utilizing the cloud include:
- Accelerating speed to market through enhanced IT agility and shorter project implementation time
- Reducing CapEx costs through an “as a service” expenditure model versus making infrastructure investments
- Generating higher cross-sell, upsell and retention opportunities
- Enabling global expansion capabilities through greater flexibility and across-geography standardization
- Reduced operating and maintenance costs
Change comes with challenges
From analytics and the IoT to cloud-based infrastructure, North American insurers are recognizing the cloud as both a vehicle and a catalyst for significant changes in the industry. However, insurers are also navigating a complex risk, regulatory and compliance landscape, and have found the adoption of cloud comes with multiple challenges.
In addition to the actual transition to cloud there are issues related to data privacy, architecture, system interfaces and IT security. Insurers must resolve these issues before they can take full advantage of cloud’s enormous potential as a business asset for driving their cost and growth agendas.
In my next post I’ll explain how you can successfully navigate these challenges and begin your firm’s journey to the cloud.
For more detailed information about how insurers can make cloud a true business asset, please see our report North American Insurers: Making Cloud a Business Asset.