As with most industries, cloud is proving to be a disruptive force in the insurance sector. It opens up opportunities across the board, helping insurers achieve faster speed to market, low costs and great flexibility. It also helps them address the demands of today’s consumers, including advances in social and mobile technologies.
Among the key drivers of cloud services for insurance are reduced costs, new business opportunities, amazing scalability, better customer engagement and business innovation.
There’s a reason that cloud computing is ranked as a top priority for CIOs today. The cloud truly facilitates transformation in the insurance industry, allowing organizations to react quickly and remain ahead of competition. When it comes to the insurance industry, the cloud:
Relieves Cost Pressures
As with any other organization in any other sector, insurance companies constantly worry about costs. They need to achieve profitability while also remaining up to date and competitive. The cloud is able to save insurers money in various areas. It cuts operating costs by following a pay-as-you-go model that ensures organizations are only paying for services when they’re using them. Additionally, the overall costs of IT ownership are drastically reduced, as many costs transfer over to the cloud provider. By pairing the cost efficiency and scalability of cloud computing, these organizations can handle changes in demand while actually saving money.
Supports Business Priorities
Cloud computing has a lot to offer businesses, and this includes supporting the unique priorities of each organization. For insurance companies, this means providing capabilities and resources needed on a flexible, efficient and affordable basis. Thanks to the scalability of cloud computing solutions, insurers can respond quickly to changing business conditions without breaking the budget.
Opens New Opportunities
The flexibility and efficiency of the cloud opens up opportunities in many areas. Insurance organizations can create strategic, collaborative partnerships while exploring new tools and operations. They can begin to think big and explore new geographical and product markets.
With a flexible and easily scalable solution, insurers can constantly react to market changes, addressing new opportunities or obstacles as they come. Reduced cost and efforts lead to greater business innovation, which ultimately leads to new projects and services.
Allows Business Differentiation
It’s been said many times before: cloud computing levels the playing field. With improved responsiveness, unbelievable availability of data and applications, beneficial analytics and impressive flexibility, cloud can transform a business, making it much more competitive. By having the tools to gather and analyze market data, insurance organizations are able to respond quickly and efficiently, whether that means rolling out new products or simply repricing existing services. They can react to real-time data. It’s just easier to do with the cloud on your side. This helps insurers differentiate themselves and maintain a competitive edge at all times.
Addresses Regulatory Requirements
Every industry has its own set of regulatory requirements to deal with, and insurance is no exception. The sector needs to maintain security and strong systems that can deal with ever-changing demands and requirements. Cloud computing makes this possible.
Accommodates Customer Needs
Customers have become more demanding. This isn’t a bad thing – it’s simply a fact. They realize the technology exists to accommodate their every want and need, and they’re beginning to expect more from every business interaction. Today, consumers want simplicity, consistency, customizability and affordability. With help from the cloud, insurance organizations can give customers what they want. Cloud computing helps cut costs on both the business and consumer sides, while offering both parties amazing flexibility. Insurers can also use detailed data and analytics to strategically meet the needs of their customers. With the cloud, insurers can access new customers while improving loyalty of existing ones.
Cloud offers insurers the chance to achieve ease in every area of their organization. By creating a central location for data and applications in the cloud, all parties, including sales agents, employees, developers, and more, can collaborate in real time from any device, in any location. Additionally, the cloud supports all critical functions of insurance organizations, including billing and underwriting.
Now you know the benefits of cloud computing for insurance. Are you interested in taking the next steps? Learn more about RapidScale’s approach to this sector on our CloudInsurance page!