How Cloud Benefits Insurance Policy Administration

Pamela Morgan, Insurance CIO Outlook | Monday, March 01, 2021

There is a multitude of benefits waiting for insurers who are ready to move policy administration to the cloud.

FREMONT, CA: The definition of cloud technology is expanding, and its applications are entering the domain of insurance policy administration. Cloud has been a technology buzzword for some time now, but in the context of policy administration, it is still an emerging concept that has a lot of potentials. Since policy administration is a carrier and product-specific area, there have always been demands for tailor-made solutions and systems. At the same time, effective integration and interaction features are also highly valued. Imbibing these capabilities into insurance policy management becomes convenient with cloud technology. The following list mentions some ways in which insurance carriers can benefit from cloud-based policy administration systems.    

• Dynamic Accessibility Options

Cloud technology is designed for remote accessibility. This property of cloud allows many benefits for insurance policy administration enhancements. A cloud-based solution can provide simultaneous access to multiple stakeholders securely. Insurance firm employees can cooperate with agents, as well as customers who are insured online. Customers and agents are also entitled to access information, resulting in less friction directly. In today's connected era, these capabilities give insurers a competitive edge by enabling virtual access.

• Significant Cost-Savings

Migrating policy administration to the cloud entitles carriers to shift many operational responsibilities and capital expenditures to relevant vendors. From maintaining critical infrastructure to licensing, vendors take over a majority of the tasks, allowing insurers to make significant savings. Even the cost of acquiring IT staff is eliminated when policy administration takes place in a cloud environment.

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• Opportunities to Focus on Core Areas

A cloud model empowers insurers to operate successfully, even when resources are limited. When policy administration shifts to a cloud, many tasks like load balancing and upgrade management come under the purview of the cloud providers. Thus, even a small workforce can work with a strategic focus on core competencies and deliver desired outcomes and profits.

These benefits of a cloud-backed insurance policy administration are beneficial for all levels of insurance carriers. As cloud environments become more robust, secure, and flexible, insurers should look to embrace new policy administration models to stay ahead in the competitive domain.

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