A new era in insurance – Cloud computing – Accenture Report
Article Synopsis :
Cloud computing has experienced tremendous growth recently and is increasingly being adopted by insurers. Looking at its immense potential, insurers should consider building a strategy around cloud technology to keep competitors at bay.
In the research report “A new era in insurance – Cloud computing changes the game”, Accenture highlight that the convergence of three technologies – cloud, mobility, and advanced analytics – is transforming the value proposition that insurance companies offer their customers. Accenture hails cloud computing as a game changer and believes that to prosper in the emerging digital landscape, insurance companies can look to the cloud, in conjunction with other technologies, to help drive two fundamental changes:
- Reinventing of their business models, including redefining their core competencies, to offer new services well beyond the confines of the old insurance model, and build new networks of partners.
- Creating of direct, multi-channel relationships with customers, with the goal of exchanging value (in the form of services and lower rates) for real-time data that can be used to accurately gauge risk.
As Accenture highlight, there will be three key trends in carriers’ use of cloud computing that will drive them through the levels of the cloud maturity model.
- Trend 1
Real-time data collection from multiple sources will become core to carriers’ business and a primary source of innovation.
- Trend 2
Carriers will increasingly leverage the full cloud stack to gain agility and enable a test-and-learn culture.
- Trend 3
Customers will be encouraged to engage more deeply with their insurance company as the public image of insurance carriers shifts.
In the report, Accenture present a high level road map of how insurers can successfully embark on the journey of cloud computing. Accenture suggests the following five steps that can help insurers prepare for stepping into a future in the cloud:
- Redraw the line between core and non-core
- Lock in business process constellations of partners
- Create a data supply chain
- Look beyond the cost play of cloud
- Build or acquire high-octane data security
Digital Insurer's CommentsCloud computing can enable insurers to expedite the launch of new products and services and can also help move them closer to a goal of having an agile, engaging and a customer centric business model. The promise of customer centric solutions at a lower cost is a key driver that is pushing insurers towards embracing cloud technologies as an alternative delivery platform. Having said that, cloud computing has also contributed to key challenges related to security, privacy and availability of IT services and these complexities will act as the biggest roadblock while migrating to the cloud. Once these challenges are addressed successfully, cloud implementation will fundamentally change the way insurers do business and will offer real opportunities in terms of operational efficiency and enhanced customer experience. We believe a successful cloud transition will help insurers:
- To stay competitive in a cost effective way
- To address customer demands in the shortest possible time
- To focus on core business rather than focusing on managing IT infrastructure
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