Insuranceciooutlook

Insurers Embracing Cloud Computing Technologies to gain Competitive Edge

By Insurance CIO Outlook | Wednesday, August 14, 2019

Cloud Computing Low-cost, low-risk, and rapid deployment of cloud technology untangles the complexities of IT insurance. 

FREMONT, CA: Due to its promising attributes such as cost-effectiveness, high safety, and simple implementation, cloud computing turns out to be a game-changer in the company globe. Several insurance companies are now moving to cloud platforms for day-to-day company operations to operate and handle. Today, wide-ranging procedures can be performed over the cloud, including premium billing, claim processing and policy management, leading in enormous cost savings on servers and technical support employees. Adopting cloud technology enables insurance companies to achieve operational efficiencies at reduced expenses and with a less manual response. The sector recognizes the importance of cloud computing technology. In an industry where money plays a vital role, security is bound to be a concern. It goes without stating that individuals operating in the insurance industry are not necessarily specialists in technology and, as a consequence, cloud service suppliers take a team of specialists along with SLA's that obviously define their position. This is an enormous gain for insurance companies because they never need to worry about their IT infrastructure's storage, upgrading, maintenance, or safety. Here are a few insights about how the insurance industry benefits from cloud computing.

Cost-effective

While insurance companies collect enormous sums of cash every day, their costs are also set out. Some of them include infrastructure, salaries for employees, electricity, training for employees and travel, etc. Cloud computing can assist save a lot of cash that can be spent on better training programs or insurance plans. Cloud is renowned for its flexibility and pays as planning goes, a leading factor attracting many companies.

Rapid Deployment

Cloud computing provides fast deployment, unlike traditional in-house IT facilities, enabling companies to be prepared to take benefit of it in the brief run. Cloud has at its disposal more than enough resources to allow numerous tenants in the shared environment. These funds are scalable at all times.

Scalability

While insurance is a constant sector, company spikes can be seen, usually translating from an IT view into a greater resource demand. In contrast, in a traditional IT environment, it is not always feasible to have the same funds easily accessible. Cloud ensures that these spikes do not hamper company, enabling you to readily and cost-effectively manage these spikes in demand.

Cloud Deployment Models for Insurance  

Public, private, hybrid, and community cloud are the leading cloud deployment models. While the basic idea stays the same, each model has its own objective. For instance, a company is likely not to implement a public cloud model because it may not want to host its information in the public sphere. An insurance company may not want its claims management information in a public cloud in a separate cloud configuration, but it may be okay to host it with customer service and help. This is exactly why many industry specialists are recommending a hybrid cloud as an optimal cloud deployment model as it benefits from both government and private cloud setups.

In the insurance industry, the use of cloud computing alternatives is likely to continue to expand. Insurance companies hoping to gain a competitive edge are already creating their holistic approach and program for cloud computing. With a holistic cloud computing approach, insurers can accomplish cost-saving and improved company agility objectives without compromising client information and safety. 

Weekly Brief

New Editions