What’s Driving Us To the Cloud: Factors Influencing Property & Casualty Insurers to Migrate
June 28, 2017
Technology is at it again. Right now it’s in the process of disrupting your colleagues in the property and casualty market to the point where they’ve been migrating their in-house business functions to the cloud.
They’re in good company; Forrester says the market for cloud computing around the globe is increasing by 34.9% annually with no end in sight. In the insurance sector, property and casualty agencies are joining in with the rest of the world, as they take advantage of the benefits that come with cloud computing. You can get helpful information about managed IT services when you:
Let’s look more closely at the specific industry trends that are forcing the small to mid-size agency to change their basic business processes as they migrate workflows to the cloud.
Industry Trends Spawning Cloud Migration
First, some backstory: for those of you unfamiliar with the cloud, we’re talking about the Internet. Instead of accessing software or hardware installed locally in your office, cloud computing models require your agency to dial through the Internet to connect to a remote server that houses the technology you use to do business. These are web-based services that can include:
It’s likely that your property and casualty business already has some functions in the cloud, but industry pressures are driving a lot of small to mid-sized agencies to consider moving more functions into the virtual space.
There are four trends to consider:
These are a few of the trends driving cloud adoption. You can subscribe to the TOSS C3 blog to keep up with trends and news related to using the cloud. But what are the benefits that make cloud computing models so attractive to begin with?
Benefits of Cloud migration
There are many benefits to cloud computing models for the insurance industry, no matter the size of your agency. Here are some of the top strategic benefits to consider:
While these are some of the key benefits of cloud computing, there are also potential drawbacks; but from the statistics, these are not enough of a deterrent for the small to mid-size agency to lessen their embrace of the cloud.
One of the drawbacks to consider could be compliance, depending upon requirements from local regulators. This could encompass data privacy and security concerns in the cloud. Another challenge could be the integration between your internal IT platforms and cloud technology.
While cloud adoption is certainly increasing in the P&C industry, ultimately you must decide what mix of on-premise and cloud models your agency will embrace. Adopting a technology stack that includes a hybrid mix of models or embracing the cloud with all functions depends upon your strategy and goals. Weighing the risks and gains from cloud delivery models will help your property and casualty agency continue to stay competitive in an evolving marketplace. Find out more about cloud adoption for your business: Get a free assessment today.
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