Cloud-First Strategy

Why Insurance Companies Should Consider a Cloud-First Strategy

Generally, there are two ways to approach digitalization in the insurance industry. Some providers choose to completely overhaul their legacy systems and replace them with fully digital core systems. Others elect to upgrade their core processes and systems component by component, as this allows them to sustainably adjust for the complex impacts of digitalization over time.

Whichever approach your insurance company decides on, it’s important to prioritize the implementation of cloud-based processes and systems. In fact, many of today’s insurance providers have found the adoption of a cloud-first digitalization strategy to be quite beneficial to their business.

What Is a Cloud-First Strategy?

Cloud-First Strategy

Source: exactdn.com

Simply put, adopting a cloud-first strategy means prioritizing cloud-based solutions before exploring non-cloud options as a means of addressing specific challenges within an organization. Instead of building its own technology, an insurance company with a cloud-first strategy opts to subscribe to cloud-based third-party services.

Upgrading its insurance management system in this way enables a company to more easily access the specific innovations needed to support a host of modern programs and services. This, in turn, can help the company gain and maintain a lead in the digital age, as such a move can allow it to accomplish the following:

Reduce Operation Costs While Upgrading Internal Processes

There’s little doubt that adopting digital technology will become a requirement for traditional insurance companies that aim to continue their operations in the coming years. It’s a necessary step in meeting the needs and lifestyle of tech-savvy customers who are used to the conveniences afforded by interconnectivity and the use of smart devices. However, upgrading legacy systems is far from an easy task, as it requires a significant investment of time, manpower, and other resources.

Here is where a cloud-first strategy really shines, as it does not require insurers to develop their own technology. Rather, it presents insurance companies with the option to access pre-made solutions that have been developed by skilled service providers.

Instead of spending a significant amount on their own research, insurers can simply check out existing systems and processes that are made accessible through the cloud. They can then choose to subscribe only to the services that best fit their business goals. This way, insurers can instantly use tried-and-tested solutions at a reasonable monthly or annual cost as well as adjust their subscription plan whenever necessary.

Improve Project Implementation Time and Speed to Market

Cloud-First Strategy

Source: cloudfront.net

Cloud-based solutions are not just cost-effective; they also enable the easy storage and retrieval of standardized information collected from a wide range of sources.

Using information collected from various touchpoints, insurance providers can get a better understanding of the needs and wants of their customers. They can then analyze the data to quickly come up with programs and products that respond to the specific needs of the market.

Then, using cloud-computing solutions, they can test how these products will fare with their audience. As they receive feedback from customers about the said products, they can swiftly apply improvements in near real-time. The ability to quickly respond to customer feedback can, in turn, significantly increase a product’s chances of becoming a resounding success.

This streamlined process enables insurance providers to develop, test, launch, and implement their products in a short amount of time. Such agility gives them an edge over competitors that might also be in the process of releasing a similar insurance product or program.

Also Read: Some Proven Tips To Deal With Difficult Customers Like A Pro

Develop a Company Culture That Is Geared Toward Insurance Innovation

Cloud-First Strategy

Source: squarespace-cdn.com

Digital technology is advancing at a rapid pace. To maximize the benefits of these innovations, insurance providers must gain access to the newest digital solutions before their competitors do.

This is not an issue with insurance companies that have adopted a cloud-first digitalization strategy, as they can easily access cutting-edge solutions through their third-party service providers. Because cloud-based service providers can devote all their resources to developing and optimizing their technologies, they can improve their offered solutions at a much faster pace than any in-house team in an insurance company would. 

Meanwhile, insurance companies are freed from having to worry about the practical aspects of their operations. Instead of wasting time on solving pain points regarding their systems, these companies can devote their resources to coming up with products and services that reflect the changing needs of their target markets. They can focus on improving the experiences of their customers at every touchpoint, developing insurance solutions that appeal to different demographics, and getting a good feel of the business trends that can affect their business.

Adopting a cloud-first strategy for modernizing operations is both forward-thinking and practical. Doing so provides an insurance company with an efficient means of digitalizing its operations and accessing the latest financial solutions at an affordable price point. By prioritizing cloud-based solutions, insurance companies can fast-track their modernization process and keep up with the competition. Best of all, such systems will make these organizations flexible enough to transform the challenges presented by the market into opportunities for growth and continued innovation.