Top tips for insurers on how to manage the cloud, assess risk and make a smooth transition to cloud

Once you’ve decided to move to cloud and devised a blueprint and roadmap, the journey doesn’t end there. The beauty of cloud is that it allows you to be agile enough to innovate and adapt to change over and over again. In this post, I’ll explore how insurers can manage the cloud effectively and assess risk, and I’ll conclude with advice on how to make a smooth transition.

Five steps for effective cloud management

It’s very important once you’ve moved your business to cloud to have an effective cloud management strategy—it could mean the difference between achieving success and missing the mark. Effective cloud management is made up of five critical components:

  1. Cloud operations—support, cloud engineering, cloud service management, service desk and monitoring
  2. Security operations—flexible cyber and data protection services that can secure cloud environments and infrastructure
  3. Cloud enhancement services—managing cloud costs through analytics, actionable recommendations, operational improvement, application remediation and re-architecture
  4. Application management—support, ongoing maintenance, enhancements and upgrades
  5. Business process operations—the business layer on top of cloud technology which focuses on delivering improved business outcomes

Three steps to help you assess risk

Regulators require organizations to properly assess risks before they move to the cloud. Accenture uses a three-step process to help banks and financial services firms assess their operational risk exposure:

  • Step one: conduct an operational assessment across the firm for navigating to the cloud
  • Step two: review lower-level controls, conduct analysis to identify gaps, and document solutions, including mitigating solutions and prioritizing quick wins
  • Step three: create a roadmap for the overall journey with a focus on aligning with regulatory approval timelines and risk mitigation

Five keys to a smooth transition

There’s no need for insurers to see the journey to cloud as daunting. Our experience shows that the following five steps can help make for a smooth transition:

  1. Establish clear objectives

Before moving your business to the cloud, ask yourself: what do you hope to achieve in terms of cost savings, operational improvement and accelerated adoption of new technology?

  1. Assign ownership and responsibilities

Cloud transformation calls for clear ownership, so be sure to assign key responsibilities to business owners, the IT team, and outside parties.

  1. Satisfy security and regulatory concerns

Keep data secure and private, and take steps to satisfy regulators that proper controls are in place.

  1. Create a comprehensive roadmap

Keep the transformation initiative on course and reduce potential business disruption with a comprehensive roadmap.

  1. Incorporate appropriate metrics

Identify early wins and build momentum by measuring the right key performance indicators accurately and effectively.

The cloud landscape is complex and continues to evolve rapidly; however, with a strategic, comprehensive approach and the right ecosystem, insurers can use the cloud to take giant steps toward creating the business models, operating efficiencies and customer experiences needed for success in a digital era.

Read our latest research on the Insurance Cloud in Europe. To continue the cloud conversation, contact me here.

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