cloud computing

Benefits of the Cloud Computing in Insurance in 2022

People in Europe aren’t using the cloud as quickly as people in other industries are. Most insurers have moved some operations to the public cloud, but only 7% have moved all their operations there.

Because that’s why there are a lot of issues to deal with when you move from old systems to the cloud, like how to keep data safe and keep sensitive information secure, as well as how to deal with regulations when insurance CIOs talk about the Big Digital Transformation Plan at work, they worry about security issues. What if our cloud provider has technical problems and we lose data? Or what if we accidentally delete it by accident?

Cloud Computing

Cloud Computing: Types and Benefits

But what is cloud computing, and why do we need it now? It’s possible to pay as you go for services like computing. People no longer have to keep their applications and data on their computers. Instead, they get them as a service, either private or public cloud. This means that insurers don’t have to buy, build, or maintain hardware and software independently.

It is possible to use cloud computing in the following ways:

Cloud Computing

According to a report from E&Y, insurers hope to achieve the following goals with cloud adoption:

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According to the report, most insurers expect to move at least 80% of their workloads to the cloud within the next decade. However, moving to the cloud is one thing, but having a strategy for adopting cloud-native services that makes the most of their power is another.

It’s essential for people who make decisions about technology to learn about the landscape and understand that technology can do more than move your data to a new place. There are many different ways that insurers can use the cloud at the same time. We’ll find out.

Azure or AWS?

Wait a second. What do we talk about before we go into the woods? AWS vs. Azure: Which one should I choose?

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Neither Amazon Web Services nor Microsoft Azure has a clear winner or loser, so the choice comes down to the needs of a business. If you need an excellent Platform-as-a-service (PaaS) provider and you need Windows integration, think about Azure. It would also be better for a company to use AWS if it needs a robust infrastructure-as-a-service (IaaS).

When you choose, keep these things in mind:

  • Familiarity with the toolset;
  • Current usage of the CSP;
  • Availability of the needed services (mainly PaaS);
  • Vendor lock-in vs. open-source tech support;
  • Regulatory/industry compliance;
  • Pricing;

As you can see, there is a lot to choose from when you choose between AWS and Azure. If you’re a big player in the market, you should pick Microsoft Azure, while small businesses should go with AWS (primarily US-based ones).

Directions in Insurance

SaaS and other cloud computing models have already been used by more and more insurance companies worldwide. When it comes to cloud computing, things have been getting better and better since 2018. A report by AiteNovarica says that the percentage of people who use the service has gone up as of July 2021.

Cloud Computing

As of right now, many insurers use them cloud-primarily for storage and computing. Even so, other options are being looked at for the future. Security, APIs, analytics, and AI are all being looked at.

Customer-centricity

In its own right, customer-centeredness grows with the cloud. The technology helps insurers attract new customers, retain existing ones, and increase sales.

It all comes down to personalization, happy customers, and speed. Customers can get personalized products and services thanks to the cloud’s analytics that are everywhere. As customers’ needs change, insurance companies can develop new business models that can make a huge difference in how many opportunities they make. Companies can communicate with customers and get quick feedback on anything they want with cloud solutions.

Innovation

The cloud has a lot of room for new ideas. It’s easy for insurance companies to quickly try out and use new technologies. The technology also allows insurers to work with other businesses in the ecosystem to develop new products and services.

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Flexible Business

The move to the cloud gives businesses a wide range of cloud solutions and apps that can help them run more smoothly. Even though Microsoft-based solutions can be integrated without extra costs, this isn’t always the case. Insurance companies can now do business worldwide thanks to the power of the cloud. Thanks to a network of partner companies from different countries, they can also bring their business processes up to international standards and use databases around the clock.

Strong Cyber Defense

Myth-busting is what we’re going to do next. To keep the cloud safe, you should take steps like logging everything, limiting access, and using VPNs. People who work at a company can deal with any possible threats if they know how to use security tools and follow the best cyber defense practices in the right way.

Saved Money

Solutions in the cloud aren’t as expensive as those installed on your servers. This means that insurers can save money on hardware and software licenses and the cost of maintaining in-house legacy systems.

Second, cloud technology has a lot of ways to make things easier. If you need to speed up business processes like claims processing and management, underwriting, or onboarding new clients, the cloud is there for you, no matter what. Insurers can spend more time on their core business and marketing when they don’t have to do as many IT-related tasks as they used to.

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Conclusion

Cloud computing is suitable for almost every business field, including insurance. Fair enough, there are problems with adoption:

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As long as you have the right mindset, digital transformation can be made happen. When it comes to digitalization, insurers should take a “cloud-first” approach and think about how to use it first. In the short term, new technology can be more important than people think. If you look at the benefits discussed here, both big and small insurance companies can start from scratch and build a cloud infrastructure that works right away.

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