Question: what is the market penetration rate for cloud services in the insurance sector? The answer is, "Well, it could be higher." Jokes aside, despite the growing digitalization of industries, the pace of cloud adoption is still somewhat slower than expected.
For instance, in Europe, the cloud adoption pace among insurers leaves much to be desired compared to other industries. The report indicates that 29% of insurers have migrated a fifth of their operations to the public cloud, while only 7% have migrated 90% or more.
Why is that? Transitioning from legacy systems to the cloud is challenging primarily due to the question of keeping data protected and sensitive information safe, not to mention regulatory considerations. When discussing the Big Digital Transformation Plan internally, insurance CIOs raise concerns over security-related issues. Not to mention such worries as “What if we lose data due to technical troubles on our cloud provider’s end?” or even “Can it be erased by mistake?”.
Definition, types, and benefits of cloud computing
But what is cloud computing anyway? In short, the technology allows using services like computing, data storage, databases, or software development on a pay-per-use basis. Both applications and data are no longer installed in-house, but are provided as a service, via either a private or a public cloud. This basically means that insurers don’t have to purchase, develop, or maintain on-site hardware and software.
The types of cloud computing are the following:
According to E&Y report, insurers hope to fulfill the next objectives with cloud adoption:
The same report also claims that most insurers plan to move at least 80% of their business to the cloud over the next decade, focusing on the workloads they've already migrated. However, moving to the cloud is one thing, while having an adoption strategy that maximizes the effect of cloud-native services is another.
Decision-makers should familiarize themselves with the technology landscape and understand that the technology offers much more than just taking their data to the cloud. So how can insurers use the cloud while concentrating on more business-related stuff? Let’s find out.
Microsoft Azure or AWS?
Hey, wait! Before we get into the woods, there’s one more question to discuss. Amazon Web Services (AWS) vs. Microsoft Azure - which one to choose?
There's no definitive answer: both Amazon Web Services and Microsoft Azure have apparent pros and cons, so the choice boils down to the specific requirements of a business. If you need a reliable Platform-as-a-service (PaaS) provider and the Windows integration is mandatory, consider Azure. In its turn, AWS would be preferable if a business needs a powerful infrastructure-as-a-service (IaaS).
When choosing, keep in mind the following aspects:
- Current usage of the CSP;
- Availability of the needed services (mainly PaaS);
- Familiarity with the toolset;
- Vendor lock-in vs. open-source tech support;
- Pricing;
- Regulatory/industry compliance;
Both AWS and Azure have a long list of IaaS and PaaS offerings. However, it would be reasonable to say that picking up Microsoft Azure would be advisable for big market players, while AWS is the wise choice for SMBs (primarily US-based ones).
Cloud in insurance: directions
More and more insurers worldwide are already using software-as-a-service (SaaS), platform-as-a-service (PaaS), and other cloud-based computing models. Since 2018, cloud computing has been on the rise. The report by AiteNovarica claims that the percentage of adopters has increased as of July 2021.
At the moment, the majority of insurers resort to the cloud mostly for storage and compute functions. However, other options such as security, APIs, analytics, and AI are considered for future use.
Customer-centricity
A growing trend in its own right, customer-centricity blossoms with the cloud. The technology helps insurers build strong customer relationships with new clients, retain old ones, and provide more sales opportunities.
It's all about personalization, satisfied customers, and speed. With the cloud's pervasive analytics, customers can get personalized products and services. As customer needs evolve, insurance companies can introduce new business models that drastically improve opportunity conversion rates. Simply put, cloud solutions allow insurers to communicate with customers and get prompt feedback on whatever they want.
Innovation
The cloud offers significant room for innovation. Insurance companies can try out and deploy new technologies fast. What's more, the technology also allows insurers to cooperate with various vendors in the ecosystem and develop new products and services.
Business flexibility
The transition to the cloud offers a wide variety of cloud solutions and apps that allows the smoothing of various business processes. For instance, the Microsoft platform-based solutions can be natively integrated without added costs. Empowered by the cloud, insurance companies can operate on a global scale, bring their business processes to international standards, and use databases on a 24/7 basis courtesy of multiple partner companies from different countries.
Robust cyber defense
So, what about some myth debunking? The cloud is safe if you introduce safety measures, such as thorough logging, restricted access, and the use of VPNs. Any potential threats can be addressed in time if the staff knows how to use security tools and follow best cyber defense practices.
Reduced operating costs
Solutions in the cloud aren't that expensive compared to those deployed on servers internally. This basically means insurers can cut costs on hardware and licenses, not to mention the regular (and costly) support of in-house legacy systems.
Secondly, cloud technology comes with plenty of automation opportunities. Whether you need to streamline business aspects such as claims processing and management, underwriting, or client onboarding, the cloud covers you. With redundant IT-related tasks automated, insurers can focus more on their core business activities and marketing.
Our team
The Akvean team of certified Microsoft Azure consultants helps companies from the insurance industry revamp their infrastructure, operational processes, and business applications.
As your trusted technology partner, we will support your digital transformation from A to Z, from strategy to implementation to post-production maintenance. The cloud offers many pros that become especially valuable for insurtech startups with no infrastructure or staff to support their systems.
- Fewer expenses. The cloud allows optimizing the cost-management routine, so you don't have to invest in buying hardware.
- Improved processes. The use of the cloud results in smart underwriting, automated claims processing, and more customized products.
- Accurate insights. The analysis capabilities: fraud, financial performance, customer requirements, solvency, compliance, you name it.
- Convenience. C is for convenience. Insurers can access the cloud anytime and anywhere.
Want an example? Here’s the ARC (Automation, Reliability & Collaboration) project we developed with accūrō Solutions. The solution represents a modern insurance platform that automates the medical bills review and payments/invoices processes.
You may also check our other Microsoft Azure-related projects to see the real value behind cloud adoption.
To sum up
Cloud computing is beneficial for virtually every business domain, including insurance. Fair enough, adoption challenges do exist:
However, digital transformation is possible with the right attitude. This way, insurers should take a pragmatic approach to digitalization and adopt a “cloud-first” mindset, so to speak. Yes, it's easy to overvalue the short-term impact of new technology. However, by measuring the benefits discussed here, both big and small insurance companies can build a fully-operational cloud infrastructure from the ground up.
As a custom insurance software development provider, we can develop solutions to gain higher productivity and increase your business' ROI. Plus, cloud solutions come with convenient access to data and improved customer experience. Contact us today to figure out your next digital transformation step.
Building Reconciliation Tool for e-commerce company
Our client was in need of streamlining and simplifying its monthly accounting reconciliation process – preferably automatically. But with a lack of time and low budget for a custom build, development of a comprehensive software wasn’t in the picture. After going through the case and customer’s needs, we decided to implement Retool. And that was the right choice.
The scope of work
Our team developed a custom reconciliation tool designed specifically for the needs of high-volume transaction environments. It automated the processes and provided a comprehensive dashboard for monitoring discrepancies and anomalies in real-time.
The implementation of Retool significantly reduced manual effort, as well as fostered a more efficient and time-saving reconciliation process.
Creating Retool Mobile App for a Wine Seller
A leading spirits and wine seller in Europe required the development of an internal mobile app for private client managers and administrators. The project was supposed to be done in 1,5 months. Considering urgency and the scope of work, our developers decided to use Retool for swift and effective development.
The scope of work
Our developers built a mobile application tailored to the needs of the company's sales force: with a comprehensive overview of client interactions, facilitated order processing, and enabled access to sales history and performance metrics. It was user-friendly, with real-time updates, seamlessly integrated with existing customer databases.
The result? Increase in productivity of the sales team and improved decision-making process. But most importantly, positive feedback from the customers themselves.
Developing PoC with Low Code for a Tour Operator
To efficiently gather, centralize, and manage data is a challenge for any tour operator. Our client was not an exception. The company was seeking to get an internal software that will source information from third-party APIs and automate the travel itinerary creation process. Preferably, cost- and user-friendly tool.
The scope of work
Our experts ensured the client that all the requirements could be covered by Retool. And just in 40 hours a new software was launched. The tool had a flexible and easy-to-use interface with user authentication and an access management system panel – all the company needed. At the end, Retool was considered the main tool to replace the existing system.
Testing New Generation of Lead Management Tool with Retool
Our client, a venture fund, had challenges with managing lead generation and client acquisition. As the company grew, it aimed to attract more clients and scale faster, as well as automate the processes to save time, improve efficiency and minimize human error. The idea was to craft an internal lead generation tool that will cover all the needs. We’ve agreed that Retool will be a perfect tool for this.
The scope of work
The project initially began as a proof of concept, but soon enough, with each new feature delivered, the company experienced increased engagement and value.
We developed a web tool that integrates seamlessly with Phantombuster for data extraction and LinkedIn for social outreach. Now, the company has a platform that elevates the efficiency of their lead generation activities and provides deep insights into potential client bases.
Building an Advanced Admin Portal for Streamlined Operations
Confronted with the need for more sophisticated internal tools, an owner of IP Licensing marketplace turned to Retool to utilize its administrative functions. The primary goal was to construct an advanced admin portal that could support complex, multi-layered processes efficiently.
The scope of work
Our client needed help with updating filters and tables for its internal platform. In just 30 hours we've been able to update and create about 6 pages. Following features were introduced: add complex filtering and search, delete records, styling application with custom CSS.
Together, we have increased performance on most heavy pages and fixed circular dependency issues.
Creating MVP Dashboard for Google Cloud Users
Facing the challenge of unoptimized cloud resource management, a technology firm working with Google Cloud users was looking for a solution to make its operations more efficient. The main idea of the project was to create an MVP for e-commerce shops to test some client hypotheses. Traditional cloud management tools fell short.
The scope of work
Determined to break through limitations, our team of developers turned Retool. We decided to craft an MVP Dashboard specifically for Google Cloud users. This wasn't just about bringing data into view; but about reshaping how teams interact with their cloud environment.
We designed a dashboard that turned complex cloud data into a clear, strategic asset thanks to comprehensive analytics, tailored metrics, and an intuitive interface, that Retool provides. As the results, an increase in operational efficiency, significant improvement in cost management and resource optimization.
Elevating CRM with Custom HubSpot Sales Dashboard
Our other client, a SaaS startup, that offers collaborative tools for design and engineering teams, was on a quest to supercharge their sales efforts. Traditional CRM systems were limited and not customizable enough. The company sought a solution that could tailor HubSpot to their workflow and analytics needs.
The scope of work
Charged with the task of going beyond standard CRM functions, our team turned to Retool. We wanted to redefine how sales teams interact with their CRM.
By integrating advanced analytics, custom metrics, and a user-friendly interface, our developers provided a solution that transformed data into a strategic asset.
In 40 hours, three informative dashboards were developed, containing the most sensitive data related to sales activities. These dashboards enable our customer to analyze sales and lead generation performance from a different perspective and establish the appropriate KPIs.
Building a PDF Editor with Low-Code
Our client, a leading digital credential IT startup, needed a lot of internal processes to be optimized. But the experience with low-code tools wasn’t sufficient. That’s why the company decided to hire professionals. And our team of developers joined the project.
The scope of work
The client has a program that designs and prints custom badges for customers. The badges need to be “mail-merged” with a person’s info and turned into a PDF to print. But what is the best way to do it?
Our developers decided to use Retool as a core tool. Using custom components and JavaScript, we developed a program that reduced employees' time for designing, putting the data, verifying, and printing PDF badges in one application.
As a result, the new approach significantly reduces the time required by the internal team to organize all the necessary staff for the conference, including badge creation.
