5 Considerations to Implement Your Insurance Firm into the Cloud
January 10, 2017
Reduced costs and performance benefits associated with moving applications and processes to the cloud have become too great an incentive for insurers to ignore. A recent study from industry analyst Ovum found that approximately a third of all insurers have either deployed or are testing cloud-based systems for critical business functions.
Large companies may experience multiple business benefits of the cloud, while the main benefit for small businesses may simply be relief from worry about IT. Contact an experienced managed service provider, such as TOSS C3, to help you decide what your best interests are.
Things to Consider
1. Software – First you will need to know if your current software will run in the cloud. Cloud systems will have plenty of software that is advantageous to your firm, but if you have older software that was created for your office, it may not be able to be run on the cloud. If the cloud provider does not have what you need, they can help you find a supplier that is right for your needs.
2. IT services – You will need to determine if you need all new computers, or if the ones you have are adequate. If you are looking at a cloud provider to take over your IT needs, then this is not a real issue. They can rent you all of the equipment you need, and you can upgrade at any time. Also, if something breaks, it is their responsibility to fix it.
What to Ask your Managed Service Provider
3. Outsourced or subcontracted
It’s important to know if any part of the cloud infrastructure is outsourced or subcontracted. Cloud computing can often involve chains of servers. You need to make sure that all the servers are located in the United States. This is particularly true if there is any data present that is not allowed to cross into other countries. This is not the responsibility of the cloud provider, but a contract can be created that will make the cloud provider responsible. In most member states, it is left to data controllers or processors to determine what appropriate technical and organizational measures need to be taken.
The insurance industry has a lot of regulations that must be followed. Make sure to ask your managed service provider if they can meet all the requirements you need for the information you store in the cloud. There are different types of cloud networks that can be created to secure your data. Since insurance companies have a lot of critical data, it may be a good idea to ask about a hybrid-cloud option to keep important data localized internally.
5. Find a good fit
The first thing to do is to find an IT business that will put your business first. When selecting an IT outsourcing company, make sure to ask the following questions to ensure they are the right fit for your company.
The insurance industry knows the time has come for widespread adoption of cloud-based operating models and technology. For that reason, in making the move to cloud-based models, insurers must think in terms of transformation and not just technology, as well as finding the optimal solution for their unique needs and objectives.
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