3 Reasons Your Insurance Company Needs the Cloud to Compete
November 7, 2016
There is no longer any question that cloud computing can be a great advantage for companies of any size. But like anything else, the cloud is an infrastructure that must be managed. It is important to have a solid plan in place before initiating any project, and this includes a decision to go to the cloud. One of the first things your insurance company will need to do is contact cloud service providers to build a contract around what your insurance needs are. A good provider, like TOSS C3, will have the tools and experience to move your insurance company to the next level. Download our cloud report to learn more.
1. The Benefits
Most everybody has heard of cloud computing and have an idea of what it is; the cloud is the place information goes. It is a little more detailed than that. The cloud allows cloud service providers multiple server locations to connect to on the fly. Depending on their setup the servers may be bound within the United States or global. The software stored on these servers can be downloaded quickly to anyone who has the right login information. This is one of the strong appeals of the cloud, but there are many other advantages:
• There is a lower cost for capital when purchasing computer systems and software
• Lower operating costs
• Outsourcing maintenance and software updates can be less expensive than having employees in-house
• The scalability for increased or decreased teams is nearly immediate
• Latest software updates are immediately available
• It is a long term investment. No need to purchase and upgrade hardware every couple of years
2. The Customer Comes First
Creating a digital insurance platform not only helps the insurance company collect needed information in a quick and proficient manner, but it is easier for the customer. Allowing the customer to perform all required application requirements from home reduces time and effort for both parties involved.
Claims can be processed more effectively and applied to the digitized insurance data to perform necessary metrics. This stored information can be used to determine response times, resource hours, and claim responses. Customers can access their accounts at any time and find information about upcoming dates requiring their attention, prescription problems that may arise, updates to coverage, or claims status. Gathering this information makes the experience better for the customer, and allows the insurance company to collect needed statistics that can be used to improve its customer support.
Each customer is a unique individual, not just a number. The cloud can help insurance companies realize this potential. The big data collected can be used to personalize quotes and rates to the individual. Rates do not need to be limited basic metrics such as age, medical health, or occupation, they can be expanded. It is a well known fact that insurance companies use hundreds of qualifying factors when determining eligibility, rates, and other services. The cloud can expand the matrix even further. Cloud service providers can help insurance companies with an extended data protocol to initiate a more intense atmosphere for clients. Personalizing can help an insurance agency to:
• avoid offering services to a client who already has the product
• keep unwanted mail from reaching the client based on their preferences
• offer better recommendations to services, or incentives based on lifestyle
• use these aspects to help with dedicated rates directly geared for an individual client.
With all the advantages to cloud computing it may be a bit of a mystery why all insurance companies have not implemented a solid cloud strategy. Companies do not want to throw away the investment they currently have in their infrastructure, but many insurance companies have already talked to several cloud service providers to prepare for the future. Companies that decide to wait too long may find that there is no future for their company.
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