Insurance digitalization, a necessity rather than a choice for any serious insurer or insurance agency, requires increasingly complex business processes and more education for employees. Business solutions such as data warehouses and server software applications are straining many insurers’ and insurance brokers’ capacities. One way of overcoming these issues, as the text below will show, is cloud computing. The innovative, scalable cloud-based service delivery models can both accelerate business organization and make it easier.
Practical Uses of Cloud Computing in Insurance
With cloud computing, insurance agencies do not have to rely on specific hardware components for their apps and services. Instead, they get to leverage an entire network of IT resources available on-demand, allowing them to use some of the world’s most resilient, safe, and efficient platforms. Cloud data storage experts such as Amazon, Google, and Microsoft ensure that all client data is stored safely.
One example of companies taking charge in this domain is Pathway. It is a cloud-based platform designed exclusively to help insurance agencies manage and streamline client-facing communications using emails and texts. For example, it automatically sends out pre-renewal and renewal letters which are triggered by the nearing of a policy expiration date. Similarly, it can create highly personalized upsell and referral campaigns without any guidance or manual input from the broker themselves. Marketing automation allows insurance brokers to offer personalized experiences to policyholders and dramatically improve engagement.
One other advantage of cloud computing is the pay-as-you-go pricing system, which lets users pay for IT resources only when they are actually using them. The cloud-based IT resources allow for data backup, data storage, and big data analytics, making customer-facing web applications use a breeze. Most of all, transferring your insurance business to the cloud allows you to adjust quickly to changes and purchase the newest insurance software available.
Cost-Effectiveness and Agility of Cloud Insurance
Additionally, any changes that need to be made in a previously established infrastructure are costlier and more difficult to implement offline. Cloud computing in the insurance industry is, most of all, cost-effective. Using cloud-based applications and email services enables quicker and easier customer service, minimizing processing time, and optimizing automated service with ease. Employees become more productive as less manual intervention is required of them, new and existing products and services are deployed more quickly, and collaboration and analytics become easier to manage. As time is money, and there is no need to spend on robust hardware equipment, and increased efficiency leads to higher profits.
With cloud computing, any additional channel and market developments can be caught up with quickly, as cloud-based systems were constructed to integrate seamlessly with existing internal processes of various companies. The high scalability of cloud storage and other IT resources also comes in handy for companies who grow quickly or need to reduce their capacities. In today’s fast-changing market, this is a huge advantage. Whether you are trying to launch a new product, adjust to market changes or grow/reduce your capacities, nothing enables high agility quite like cloud computing.
Cloud Computing and Cybersecurity
Over the past couple of years, there have been several instances of data breaches in the case of cloud-stored information. Depending on whether the insurer is using a private, public, or hybrid cloud computing type, risks can vary. As cloud infrastructure is available to the general public in public and hybrid cloud solutions, it also becomes more difficult to protect data from malpractice. The good news is that AWS, Microsoft Azure, and Google Cloud have the best cyber protection systems in the world. Companies working with confidential data needn’t worry, as the only worry they might come up with when transferring to cloud-based solutions is easy to overcome.
Cloud computing is a new way of using and delivering IT services. It helps companies all over the world accelerate their business transformation and adjust to the ever-changing market demands quickly and at minimum costs. The flexibility and high self-service capabilities of cloud computing make cloud-based IT solutions a necessity to businesses who want to keep their competitive edge in today’s insurance market.