The pandemic and numerous restrictions forced companies from the insurance industry to make changes to secure the continuity of business processes, avoid the loss of customers, or decrease satisfaction with the quality of services. It was modern technologies that helped to go through these changes relatively painlessly. In particular, technologies related to cloud services.
2011, Iceland, NY, USA. Conference room, 3rd floor of Computer Associates (CA) headquarters.
I’m talking to AGF (Allianz) about using neural networks for the health insurance market’s risk assessment process. The estimated cost of the test implementation is $ 750,000.
20 years later. Warsaw, Poland. Videoconference.
I am talking about the use of neural networks in property insurance underwriting. The estimated monthly cost of the system is $ 2500. System launch within two months.
What has happened in these 20 years? Of all the extraordinary events, one has left an undeniable mark on how we operate. The internet and computing power have become available to everyone.
The remote working model transition in insurance companies turned meetings into videoconferences. Both customers and employees got used to new communication tools, such as Microsoft Teams, Zoom, or Cisco WebEx. Thus, companies from the insurance industry have increased their experience working with cloud-based services.
These tools helped to ensure internal communication and uninterrupted customer service. However, looking at cloud services’ potential, this is only the beginning of a real transformation of the insurance sector.
The public cloud offers much more. It gives a real chance to build a market advantage, enabling the quick introduction of innovations and high flexibility in responding to changing customer expectations.
According to analyzes carried out Bain & Company („Digitalization in Insurance: The Multibillion-Dollar Opportunity”), P&C insurance companies that start the transformation process using the cloud can expect a 28% increase in revenue and a 19% decrease in claims payments within five years, and a 72% reduction in administrative costs.
Improving Customer Experience:
Scalability and performance
Scalability and efficiency in the cloud model respond to all kinds of computing power needs during periods of increased sales, service, or other activities resulting from ongoing marketing campaigns. The cloud will handle it without IT involvement and long-lasting processes of purchasing more servers.
All of these benefits sound encouraging. However, achieving them requires some effort. Earlier consideration of the following points will increase the chances for the cloud migration project’s success. It will also show the organization’s problems that need resolving before migration.
1. Take advantage of the experience of the companies that have already migrated to the cloud – learn from their mistakes.
There is no need to break open doors. Take a look at the experiences of other insurance companies that have already paved the way to the tough negotiations with the regulator and verified the largest cloud service providers’ flexibility.
9. Prepare the requirements of individual departments
The well-prepared map of changes and processes will show you who will be affected by the changes and what will change in the responsibilities of entire departments and individual employees.
It will also give information, which employees in the company you should include in the communication process of the upcoming changes and implementation.
10. Get started and migrate to the cloud
Going through all the points will build awareness of the challenges and expectations. Knowing what you can gain, understanding the advantages of the cloud, a sense of control over weak points that may slow down the implementation will significantly increase the chances of successful migration. At this stage, you will decide on the size, pace of implementation, and cooperation with external partners.
Cloud is a new way of looking at the company’s business model supported by modern technologies. It is a model which reduces time, costs, and the number of people needed to introduce new products and services. It’s also the certainty, stability, and reliability of the provision of services, allowing you to increase your competitive advantage. Cloud means a complete business transformation of the entire organization, from the IT department through Sales, Compliance, Legal Departments, and Security.
Process changes are inevitable. It’s a large project which effects allow the company to move to a higher level, which would be difficult to achieve through another way.
Dariusz Korzun, Rafał Sałyga