Cloud Solutions for the Insurance Industry

Cloud Solutions for the Insurance Industry

Today, cloud services have become one of the most transformative technologies in most businesses, and the insurance sector isn’t an exception. A report by Gartner shows that up to 90% of organizations will adopt cloud services by this year. If your insurance firm manages to move more of its business to the cloud, including data, applications, infrastructure, and processes, you will make great strides in transforming your business. One of the most notable advantages is making your business customer-centric and data-driven. In fact, cloud computing is quickly becoming a vital part of the insurance industry. Notably, approximately 51% of insurers say that cloud services give you an edge over your rivals.

And with the rising competition in the insurance sector, everyone wants to be ahead of the pack. The traditional office setup where employees shared files, emails, and other documents via an on-premise server is quickly becoming a thing of the past. Cloud computing allows you to access services such as databases, software development, business processes, software development, and computing without purchasing or developing a hardware component. Better yet, you also improve fraud prevention, claims process, and underwriting. Read on for more insights.

Cloud Technologies That Insurers Should Utilize

There are about seven key technologies in the insurance sector that have increased the levels of digital transformation. You can get most of these technologies from top cloud providers such as Google Cloud and Microsoft Azure. They include:

• Machine learning
• Internet of things
• Analytical tools
• Virtual reality
• Distributed ledger technologies
• Modern IT architecture
• Updated online sales strategies

These are the key drivers of innovations, and they rely on cloud computing. In other words, the cloud will have a greater impact on the insurance sector even in the future.

How the Insurance Industry Benefits from Cloud Services

There are several ways that insurance firms benefit from utilizing the cloud, including:

Build Policyholder Confidence

Data shows that it costs businesses 6 times more to win new clients than to retain existing ones by providing a good customer experience. That’s why businesses have to invest a lot of resources in the customer service department regardless of the industry. In the insurance sector, you should increase engagement to improve customer loyalty. This will give you a better chance to initiate cross-selling or up-selling. For better engagement, you need to address every client differently based on their unique needs, character, and behaviors.

By utilizing the power of cloud computing, insurers can know their clients better. Even better, you can go beyond segmentation and have a one-on-one conversation with a customer in an omnichannel or interactive mode. This is fundamental in the insurance sector, which has many slippery touchpoints.

Cost-Effective

Insurers collect huge amounts of money daily, but they still have considerable including employee training, electricity, traveling, infrastructure, employee wages, and more. Cloud computing works on a pay-as-you-go plan, so you only pay for what you need, a primary factor that has led many businesses to adopt cloud services. These flexible plans allow you to save a considerable amount of money, which you can invest in better insurance plans, training programs, and other vital aspects of your firm.

Scalability

Typically, insurance is a steady sector. However, you can still experience spikes in your insurance firm from higher demand on resources and IT. And, in case you are still operating in a traditional IT environment, you will not always have the same resources at your disposal. By adopting cloud services, these spikes will not hamper your operations. Even better, you will easily handle these demand spikes and maintain lower costs.

Acquire New Customers

With cloud computing, you can easily collect and analyze big data. And since people are always making searches on the web looking for different solutions, cloud computing also allows you to select the most functional, deep, and important data. This way, you will easily identify your real audience out of the digital traces you find online. Moreover, you can further segment your audience so that you make targeted approaches to different groups among your customer base in the most personalized way. Using this data-driven approach, you can acquire new clients easily and quickly.

Cloud Deployment Models That You Can Implement in Insurance Businesses

There are four cloud models that you can consider for your insurance firm including:

• Public cloud: This model is mainly utilized by large corporations due to the availability of networking, storage, and computing services. Still, the insurance sector can benefit from this model by taking advantage of its affordability. You’ll spend less by paying only for storage, CPU cycles, and bandwidth.
• Private cloud: This is a cloud model or software that you can use to organize some internal processes within your organization. This software allows you to secure data transmitted in it. Private requirements and flexibility are the main features of a private cloud.
• Hybrid cloud: This is one of the most multifunctional cloud models you can utilize in your internal and external processes. Moreover, a hybrid cloud can quickly adapt to your business’ needs and requirements and has high data security.
• Community cloud: With this model, you get cloud services with high compliance and privacy security levels. You also get a shared infrastructure for a specified community of users.

Better Security With Cloud and Blockchain Technologies

Cloud services have multiple layers that protect your files from unauthorized access. Also, in case you don’t prefer using a public cloud, you can rely on IT experts from MicroXpress Inc to create a private cloud for you. The cloud guarantees high-security levels due to firewalls, network security, and strict access controls.

However, cybercriminals are also looking into ways to steal data despite this new technology. As a result, there is a need for insurers also to adopt blockchain technologies for better security solutions. Blockchain technology makes it harder to infiltrate your system since devices can make independent security decisions without relying on a centralized authority.

Moving to the Cloud Is Easier with MicroXpress Inc

Cloud services have become an integral part of the insurance sector. You can now lower your operational costs and still improve other critical areas of your business, such as offering better insurance plans. You’ll also get the best out of big data to help you have a personalized approach to different customers to improve customer experience and expand your customer base.

With the assistance of MicroXpress Inc, you can utilize cloud services to help you improve productivity levels, have simplified access to data, and boost ROI. Feel free to speak to our IT professionals to get you started.