Other parts of this series:
Insurers are modernizing their core life and annuity administration systems and are increasingly moving them to the cloud. Over a year ago, Accenture surveyed 50 C-level insurance company executives and learned that 70 percent have already done formal planning and analysis on moving legacy applications to the cloud. In fact, they’ve earmarked 11 percent of their IT budgets for cloud through 2022.
What if you’re not in the 70 percent. Where do you begin?
The first step is to modernize your core insurance management systems with a digital insurance platform that’s already running in the cloud. Carriers that have done so are benefitting from new operational efficiencies in front office sales and servicing functions as well as back office underwriting and analytics functions. These efficiencies will be much needed as revenues come under greater pressure from the COVID-19 pandemic.
Beyond operating efficiency, insurers recognize the value of the cloud to keep their core technology systems evergreen. The cloud enables new and advanced capabilities on a continuous basis that digital insurers can easily leverage across their lines of business. Cloud hosting services enable them to rethink their operating models and reallocate IT resources where they add the most value. This is where innovation flourishes.
A powerful combination: digital insurance platform and cloud
We see bold new opportunities to provide amazing customer experiences that today’s digitally savvy customers expect, including faster and better service, and data-driven, personalized services from trusted brands. The cloud provides access to these services whether they are part of the insurance ecosystem, such as underwriting, a complementary ecosystem, such as customer engagement, or even a new insurance ecosystem created by nimble insurtechs.
The window of opportunity, however, is closing. As more insurers adopt cloud for core insurance applications and shared services, competitive pressures intensify. Companies that do not modernize their core systems soon may find it difficult to catch up.
Where is your organization on the cloud–adoption curve? If the COVID-19 pandemic hasn’t already reinvigorated your cloud plans, now is the time to take action. Modernize your core life and annuity systems and leverage the efficiencies of a digital insurance platform to drive product and service innovations. As our industry emerges from the pandemic, insurers with modern, cloud-based underwriting and policy administration systems will be better prepared to innovate at scale and respond to the unexpected.
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