Cloud as Rainmaker – Accenture Infographics
Article Synopsis :
As insurers change the way they do business one common enabler emerges: Cloud. Insurers are reaping substantial cost savings and flexibility gains – both internal and external – harnessing the power of cloud technologies.
In the infographic “Cloud as Rainmaker”, Accenture addresses some of the myths related to cloud adoption and suggests key steps to squeeze maximum value from cloud deployments.
Even though cloud-based infrastructure is best for large-scale digitisation initiatives many insurers are still hesitant to embrace it. Per the report three primary reasons (or myths) drive this reluctance:
- Lift-and-shift doesn’t work: This is not true. Cloud based infrastructure helps improve agility and flexibility. Lift-and-shift in scenarios such as the migration of development and test environments to cloud workloads achieve significant cost-savings with minimal risk.
- Sunk costs are not recoverable: Also not true. One insurer shrank 70% of its data-center space by moving to a cloud-based infrastructure. M&A and market consolidation often result in complex IT environments. Legacy systems and the integration of different complex processes can be achieved on a critical path in the cloud.
- Digital transformation can be achieved without the cloud: This is not likely true either. Technologies such as blockchain, big data analytics, biometric authentication and connected devices are far more cost-effective in cloud.
Without the cloud’s capacity and firepower, digital does not happen – nor does an 80% cost savings on infrastructure services. To reap the potential benefits of the cloud insurers should consider three key steps:
- Prioritize and optimize migration to the cloud balancing decision factors such as application cloud readiness, demand fluctuation and digital insurance business data needs
- Track value realization focusing on metrics such as claim response times, ratio of cloud to legacy applications and the number of resource hours saved
- Quantify the return on agility beyond cost savings measuring additional revenues achieved through faster rollout of new cloud-enabled capabilities
Digital Insurer's CommentsCloud adoption boosts infrastructure capabilities at incrementally lower cost. Speed of deployment and span of coverage (across insurance functions like policy, rating, underwriting, billing, and claims) are major operational benefits.
Cloud migration also enables the development of strong collaborative capabilities and better information sharing – a must-have in an increasingly distributed and innovation-driven world.
Digital insurers leverage the cloud for agility, flexibility, cost savings and in some cases security gains that, though technical in nature, drive real business advantage.
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