Accenture has helped insurance companies realize as much as 80 percent savings using a measured approach to cloud application migration.
Slow, incremental growth has been the norm for the life insurance sector for years. Insurance players have long resisted change, focusing more on client security and product development. However, rapidly rising customer expectations and growing competition have brought a tsunami of change in the way businesses function.
To remain competitive, the only way for life insurers is to reinvent themselves. They must broaden their horizons and make use of the latest advancements in technology. Moving to cloud is one area insurers cannot ignore. From substantial cost savings and process improvements to intelligent decision making with analytics, the benefits are numerous. Cloud can create significant opportunities for insurers to build new business models that are customer-centric and nimble and, consequently, can help them grow more quickly and profitably.
To harness the full potential of cloud, life insurers must take a measured approach. Here are three key steps insurers must consider to achieve the desired results:
- Prioritize and optimize migration to the cloud
Balance key decision factors such as application cloud readiness, demand fluctuation and digital insurance business data needs.
- Track value realization
Frequently review the progress and compare the outcomes achieved with the initial targets. Make use of leading metrics such as the ratio of cloud to legacy applications, claim response times and the number of resource hours saved. This will help initiate corrective actions well in time.
- Quantify the return on agility reaped
Track the total value driven by cloud. For instance, measure the additional revenue achieved through faster rollout of new cloud-enabled capabilities.
Moving to a cloud-based model is a transformational journey, and not a fixed destination. Insurers will need to review their strategy along the way. A focused approach will be key in maximizing the benefits.
Please read our point of view—Cloud as rainmaker: How insurers save 80 percent in carrier costs—for more details on cloud optimization.