Other parts of this series:
- Cloud computing, Part 1: Is the cloud risky business for life insurance?
- Cloud computing, Part 2: The four basic models of cloud technology
- Cloud computing, Part 3: How insurers are incorporating the cloud into their business models
- Cloud computing, Part 4: Paving the way for a better cloud experience
Over the past several weeks we’ve been examining the role of cloud computing in the insurance industry. Today I’d like to take a look at how a recent study sees this technology evolving and how quickly insurers will integrate it into their business models.
A 2014 study for SAP Software Solutions interviewed 200 senior CIOs from the global insurance sector—more than half of them from life insurance–asking them about how they’re using the cloud and its benefits and drawbacks.
Key findings of the survey include:
- Some form of cloud use is “business as usual” for most insurers and continues to grow in importance
- Cloud use has moved beyond horizontal services to support an insurer’s entire business ecosystem
- Cloud is no longer about cost reduction, as insurers use it to drive organizational agility
- Cloud is poised to transform the insurance industry, driving increased levels of competition
- Regulatory compliance remains the biggest inhibitor to cloud adoptions within the insurance industry, but the issue is in the process of being resolved
- Insurers need to focus their cloud strategies on the critical role it has in business transformation.
The study finds that the “cloud first” approach is prevalent among insurers in mature European and North American markets. Among life insurers, cloud technology is not only in use for email, backup/archive and business continuity, but also for business growth and revenue generation activities like new business acquisition, marketing, customer targeting, and new product development.
The SAP study predicts that cloud technology will fundamentally change how insurers source IT and drive further competition in the industry—not only for big players, but “leveling the playing field” for smaller insurers as well.
Next time we’ll take a look at what Accenture is doing to help organizations leverage their cloud applications.
Register to download, A new era in insurance: Cloud computing changes the game.