Insuranceciooutlook

How Insurers Ride the Cloud for Rapid Growth?

By Insurance CIO Outlook | Tuesday, November 26, 2019

By using cloud services to streamline processes and make better use of data, insurers can position themselves better to compete over the long haul.

FREMONT, CA: As the insurance industry enters the digital age, expectations for carriers to provide a great customer experience are increasing. Fortunately, many insurers are now at an inflection point in their cloud transformation journey. Insurance applications hosted in the cloud cost less to maintain, and enable the business to move quickly. Here is a list of current innovations in cloud computing that are quickly becoming a necessity for a digital-first insurance company.Top Insurtech Startups 

• Serverless Computing for Insurers to Scale Fast

Insurers are adopting the cloud rapidly. One reason for this shift is that many of the requirements run an agile digital insurance business depends on a cloud-based IT infrastructure. Cloud-hosting or serverless computing puts the maintenance responsibility in the hands of the cloud service provider, which scale computing power needs up and down as necessary.

• Microservice Offering Unprecedented Flexibility

Insurers are familiar with developing IT infrastructure for the present but not one that is future-forward. Changes in existing products or functionality can happen at any time. This level of flexibility requires a microservices architecture, which allows applications to be deployed independently from other digital infrastructures. With serverless computing, insurers can configure new functionalities and craft unique experiences to each user without changing the foundational infrastructure. Microservice is one of the most critical components of a digital insurance company because they support agility and flexibility.

• Data Management and AI Automating Processes

As insurers today handle multiple data sources entering their core systems, it is challenging to manage and process the data enterprise-wide effectively. Artificial Intelligence can make it possible to automate much of the data analysis and use the gathered input during policy binding. The ability to turn data into actionable insights will be one of the most critical focus areas for carriers shortly. Cloud is providing this data aggregation services and allow insurers to offer an enhanced customer experience.

Innovations in cloud technology represent a focus for insurers in the coming years. With this, insurance companies pride themselves on their ability to execute efficient business strategies that serve customers and maintain a healthy bottom line.

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