Transitioning to the cloud offers other essential advantages for insurers, including:

Software updates are continuously applied and integrated quickly into an insurer's existing system. Security updates are a key focus with cloud computing, public cloud providers care for millions of solutions across numerous industries and can apply security capability across all industries seamlessly. This is a key capability and need since there are many attackers trying to penetrate our businesses regardless of where they are.
Cloud enables an ecosystem (Third-party services) change in integration responsibility. The burden can be better distributed between consumers and providers. Integration standardization allows this dynamic to flourish. Providers become publishers, consumers become subscribers. Solutions are provided as ready-made and readily available services. Entry and exit time and cost are significantly reduced which will encourage competition. With easy entry and exit competitive efforts focused on value of services will become more prominent resulting in a more accomplished platform. All participants will be put in a position to provide more and to do it on a rapid cadence. An example of this concept can be observed in retailing based on the Amazon effect. "Delivery in hours as opposed to weeks, returns that are seamless, shipping included in the price". This same dynamic can be applied to the insurance ecosystem.

The industry has an increasing demand for seamless engagement with customers and agents. Engagement is not only the experience but also the very valuable time that each participant needs to invest. This causes insurers to constantly innovate how they can provide a rich engagement in a way that insured expect. Since expectations are continuously changing and demanding more the cloud continuous iteration allows test and learn improvements to evolve rapidly over time. The more competitive eco system combined with improving engagement model allows carriers to raise the bar on service to agents and insured.

The cloud can drive innovation. As the proving ground for new capabilities and product experimentation, it lets insurers capitalize on new opportunities, test viability, and drive better business results –with confidence. The shift of non-differentiated work combined with a low barrier to entry eco system allows new InsurTech and carriers to apply test and learn approaches to new and disruptive technology concepts.

Competitive edge

As today's marketplace continues to evolve, it is little wonder P&C insurers have an increasing appetite for SaaS solutions. New risks and opportunities are constantly — almost relentlessly — presenting themselves, and insurers must reinvent their business accordingly. Partnering with solution providers that maximize cloud benefits allows insurers to shift the burden of updating their technology and securing their data to providers, change their own business capability at a cadence that has been unheard of historically, and focus their very valuable energy on innovating their business. By leveraging the capabilities of the cloud, smart insurers can adapt to the new reality and compete successfully, today — and tomorrow.

Special Reports /

P&C insurers look to the cloud for key business solutions

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