The COVID-19 pandemic has already accelerated diverse technology implementation, and the insurance industry is not an exception.
Companies are now interested in fast and pragmatic solutions, innovative approaches, and products that can boost customer engagement as well as overcome the serious challenges in insurance.
The AI and cloud computing services implementation has already got their own niche in this area. And, when the first one is only starting its path, the cloud computing technology has been widely utilized for improving the traditional insurance model so far.
In general, it is used for adjusting the insurance industry to the “new normal” across 5 stages - resolve, resilience, return, reimagination and reform.
But what makes cloud computing for insurance industry so important? Let’s get that covered!
Definition and Potential of Cloud Computing
In general, cloud computing is the delivery of various services through the Internet. Being utilized for the insurance industry, cloud computing solutions provide the list of advanced capabilities for supporting different business processes, according to Deloitte.
Its application allows to reduce technical debt, minimize expenses, improve the workflow and optimize the cost-management.
In fact, the potential of the cloud computing services allows optimizing various processes for the insurance companies:
- create a reliable policy administration, effectively process the requests and provide an outstanding UX for the company and its customers as well;
- boost the company’s ROI by implementing a universal secure platform that can process and transmit the data more effectively, thus increasing the workflow efficiency;
- reduce the expenses and optimize the business with workflow automation by processing the claims, billing, and underwriting;
- increase the quality of the insurance services through improving the data quality and data analytics, as well as logical group implementation.
These advanced opportunities offered by cloud computing services can not only greatly improve the insurance services quality but also open up new solutions for the business optimization processes.
Benefits of Cloud Computing for the Insurance Industry
After covering the basic purposes of cloud computing, it’s time to discover the main benefits your insurance business can get with its implementation.
Data Management
For most industries, data becomes one of the most valuable parts of the business. In the insurance industry, data is widely utilized for identification, structuring, analysis, billing, and managing different aspects of the company’s workflow.
Cloud computing allows interacting with any data within one system, which is highly appreciated for both large and small companies.
Furthermore, the cloud computing system can greatly optimize both internal and external data management for insurance companies.
According to McKinsey, external data requires a high level of security, while internal data implies various kinds of organizing and structuring to provide the flexibility for creating the new insights and capabilities.
All these aspects become an easy yet affordable solution for insurance with cloud computing employment.
Cost Efficiency
One of the major cloud computing benefits is the ability to reduce regular business expenses, which is quite important for any company.
The adoption of cloud computing services allows to facilitate and optimize both internal and external processes with significant reduction of the investments needed for storage and operating the data, establishing an automized workflow, etc.
Rapid Deployment and Flexibility
Unlike most IT innovations, insurance cloud computing takes a little time for adoption and easy integration into the business workflow.
This means companies don’t need to stop the workflow even for a while. Furthermore, there are different options available for multiple users, so the insurance business owners can comfortably cooperate within one working environment, share the corporate information and important data, and have 24/7 access to any document required for their successful performance.
Better KPI
Needless to say, that workflow automation and optimization can also benefit the employee’s productivity. With the cloud computing services employment, companies can significantly reduce the amount of paperwork, and optimize the data sharing for the workers.
Additionally, cloud computing in insurance simplifies the access to corporate data and also offers a holistic view to understanding consumer needs.
Advanced Customer Experience
The cloud computing implementation in insurance allows not only understanding the customer needs but also making critical changes to improve the insurance services quality.
For instance, the insurers can access and analyze the latest trends popular among the different customers worldwide.
Then, with having all these trends adapted to your technology, it’s much easier to create a personalized experience for different audiences, improve the customer retention rate and enlarge the target audience as well.
Risk Management
It goes without saying that any company needs not only to improve its services and work on eliminating its weak points but also minimize the risks that can have an impact on the company’s internal operational processes.
According to PwC, the value of risk management in insurance can greatly improve the business strategy, optimize the goals for the company, help to reduce the probable losses, enhance the feedback from the product development and performance, etc.
Cloud computing enables the integrating of risk data, various assessment reports, and risk indicators within one system that assists companies in protecting the company’s data from third parties intervention or specific data breaches.
Types of Cloud Computing in the Insurance and How to Implement This Technology
Along with the benefits of cloud computing, it’s also critical to understand the basic types of cloud computing that can be implemented in the insurance industry and provide different services.
Here are the main models of insurance cloud computing to consider, according to ResearchGate:
- Private Cloud. This is the software used for organizing some internal processes of the company and allows to secure the data transmitted in it. The main features of it are flexibility and private requirements that can’t be influenced by the legal and security requirements.
- Public Cloud. This type is widely used for providing online services to clients on the web. Thanks to the computing, storage, and networking services availability, this service is utilized by the list of large corporations such as Google and Amazon, yet can be really beneficial for the insurance services. Because of its high popularity and affordability, that can be a great solution for companies who want to pay only for the usage of CPU cycles, storage, or bandwidth.
- Community Cloud. This one indicates the cloud services that have a high level of privacy security and compliance while offering a shared infrastructure for the defined community of users.
- Hybrid Cloud. One of the most multifunctional cloud services that can be used both for internal and external processes, offers pretty high data security and can be adapted to the main needs and requirements of a company.
In case you have decided to employ the cloud computing solution to the insurance business, it’s still important to know the best practices of this process.
The most critical of them include understanding the basic requirements and needs of your organization, its main goals, and expectations from the cloud computing services.
Additionally, it’s pivotal to define the value and measures of cloud computing employment as well as decide on how to track the changes of the workflow optimization.
Establish a clear structure of the migration process and choose the person in charge of the migration process, which can help you to keep an eye on the critical processes and detect any issues if there are some.
Last but not least, make sure to pick up a reliable IT partner that can assist you in this process and consult in any questions regarding cloud computing for the insurance.
These simple yet effective methods will help you implement the cloud computing services correctly and get the most of their utilization.
Conclusion
Cloud-based computing services have become a great option for the different processes optimization for the insurance industry.
With the assistance of custom insurance software development services, it is much easier to reach higher productivity, improve customer experience, increase the company ROI and provide simplified access to any data within your company.
Our team of developers at Intellectsoft empowers companies from various industries and verticals with innovative solutions and approaches to enhance their business performance and optimize the list of internal processes in it. Are you and your organization looking for some?
Feel free to talk to our experts to discover more about any question and learn how your business can start benefiting from innovative technologies today!
