The competitive nature of the insurance industry is putting pressure on insurers to spend more money in order to stay ahead. The cloud provides a cost-effective solution that allows insurers to simplify and automate IT resources. Cloud Insurance also lets companies run applications securely from any device and maximize business flexibility and agility.
Many insurers today are being held back by their outdated IT infrastructures. Much of their IT budget goes towards maintaining core systems, and these costs continue to rise every year. As a result, insurance companies have limited resources left over to innovate in areas like marketing or new product development.
Customers expect products and services that are suited and responsive to their needs and wants. They also want to have access to consistent communication across every channel they use. Insurance companies need to make sure their agents are reachable at all times, and customer information is secure and accessible.
Insurers need to be able to run analytics and large data simulations. With traditional on-premise infrastructure, these activities can drain IT resources and can be very costly to support, especially during peaks in demand. Many insurance companies have had to decide whether to spend more money on IT to handle these spikes in demand, or choose a more cost-effective route that results in delays and problems maintaining capacity.
Insurance companies are required to meet specific industry standards and regulations including SOX, PCI-DSS, and FedRAMP. Every time a company upgrades to new technology, they have to make sure they still fall within compliance guidelines. This process can take a lot of time and effort when the on-site technology needs to be upgraded every few years.