With rapid technological changes and increased customer expectations, leaders in insurance no longer have the luxury of time to “wait and see” where digital innovations will go. Digital savvy new entrants to the market are changing the way insurers have done business for decades – from mobile apps to wearables, insurtechs have transformed the products and services in the industry. One common element for success in a digital world is cloud. Cloud has the capacity and firepower insurers need to make digital happen. Still, one in three insurance companies cite high cost as a reason holding them back from adoption. They shouldn’t. Here are six key trends revealing why it’s time to embrace cloud:
Trend 1: Non-stop consumers. Accustomed to 24/7 access to retailers, banks and online entertainment, customers expect the same of their insurers. More customers demand mobile apps that give them quotes, compare services and offer incentives.
Trend 2: A tsunami of change. Insurance companies have the opportunity to reinvent themselves with the advent of self-driving cars, wearables, fintechs and advanced analytics. Cloud offers the advantage of better and more secure hosting of this big data.
Trend 3: Making digital happen. Cloud underpins all of the digital changes insurers must make to meet their business objectives and their customers’ future needs. Many industry-specific applications are exponentially increasing opportunities for revenue and savings. These technologies require cloud’s flexibility, reliability and security.
Trend 4: Lift-and-shift works. Accenture has helped companies realize 80 percent savings using the lift-and-shift approach to cloud application migration. The use case was a development-testing-environment migration of a commercial suite of actuarial systems into cloud infrastructure.
Trend 5: Sunk cost fallacy. Sunk costs are no obstacle to the cloud, given that six out of 10 insurers replace their infrastructure every three to six years. There is an opportunity to align this refresh cycle to cloud migration. Insurance companies can avoid unnecessary capital expenditures, minimize write-offs, and sunset their depreciation schedule by doing this.
Trend 6: Fostering innovation. Cloud is already turning traditional one-size-fits-all insurance models on their head by providing the muscle for advanced analytics applications. In the 2016 Accenture Technology Strategy Survey, 83 percent of insurers surveyed agreed that the cloud will foster innovation in their business that was not previously possible.
So why continue to hesitate? Adopt cloud now and become a digital innovator in insurance!
Learn more: Cloud as Rainmaker