How Cloud Technology Augments Capabilities of Insurers

By Cloud Computing Outlook | Monday, January 06, 2020

Cloud technology is empowering the insurance industry by helping it streamline critical processes and delivering service better.

FREMONT, CA: The demand for better customer experience is driving insurance service providers to hunt for technologies that can augment their efforts towards serving customers better. For such insurance firms, cloud technology has come as a savior. Many in the insurance sector today are vouching for cloud technology as the best way to transform the customer experience. Cloud allows insurance applications to be agile and affordable. A few developments in cloud computing that will play an integral role in making insurance companies digital-first are listed below.

• Improved Ability to Scale with Cloud

Insurers are undertaking rapid cloud adoption. One factor behind this shift is that the demand for agile digital infrastructure. Insurance businesses want to adapt to the current ecosystem, and a cloud-based IT infrastructure fulfills all the criteria. Cloud-hosting or serverless computing places the responsibility of maintenance in the hands of the cloud service providers. This gives insurers the option to scale up or down whenever required.

• Microservice to Support Modifications

At the moment, insurance providers lack the resources to develop futuristic IT infrastructure by themselves. Modifications in existing products or functionality should become achievable. This level of flexibility demands microservice architecture, which allows applications to be deployed independently from other digital infrastructures. With cloud-backed serverless computing, insurers can develop new functionalities and design unique experiences for each user irrespective of foundational infrastructure. Microservice forms one of the critical components of a digital insurance company.

• Better Data Management Abilities

Handling multiple data sources in core systems is challenging for insurance providers. Artificial Intelligence can help automate the data analysis and apply the gathered insights during policy binding. The capacity to turn data into actionable insights will be one of the priorities. Cloud enables data aggregation services and thus will be instrumental in allowing insurers to craft an enhanced customer experience.

Cloud technology innovations present the insurance sector with unmatched benefits that can result in better performance and higher revenues for insurers.