Cloud Services Are Shaping the Future of The Insurance Industry

Cloud Services Are Shaping the Future of The Insurance Industry

Written by Joe Cannata

Posted on January 29, 2022

In recent years, we have seen a drastic increase in insurance industry customers migrating their business to the cloud and away from the traditional office.  In the traditional office, team members leveraged fax, shared folders on an on-premise server, and insecure email to manage their clients.  With the embracement of digital technology, the underwriters themselves have provided ample resources for the insurance agents to manage policies, claims, and write additional business.

In addition, the insurance agencies are now leveraging encrypted email to communicate sensitive information, shared secure cloud storage for documents, and cloud-based platforms provided by the underwriters.  By leveraging these technologies, the agencies are all taking a much greater step towards being HIPAA compliant.

Integrated Services on the Cloud

One of the main attractions of cloud computing is the wide range of services available on the platform. Leading cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud offer a comprehensive package of over 100 features including storage, networking, machine learning and AI, security, IoT, databases, API, and enterprise applications. The ability to leverage a wide range of services on one platform makes cloud platforms attractive to insurance companies of all sizes.

Remote Working with Microsoft 365 And RingCentral

The strict compliance requirements of technology in the insurance sector allow only the best and most vetted cloud vendors to infiltrate.  Systems such as Microsoft 365 and RingCentral work well and are becoming widely adopted across the industry.  Microsoft 365 provides the basics such as communication, collaboration, and file sharing.

RingCentral brings the phone system and team collaboration into the 21st century with 100% cloud-based communications, allowing all employees to detach from one physical office location.  The combination of these two providers allows many businesses to fully embrace the remote working model.

Leveraging Microsoft’s Azure Virtual Desktops

With Microsoft’s Azure Virtual Desktops, employees in the insurance industry no longer need to be tethered to the office. M365 virtual desktop users enjoy the freedom of BYOD (bring your own device) while gaining anytime/anywhere access to their familiar Windows Desktop.  Azure and M365 allow everyone from claims adjusters to customer service representatives the freedom to work and collaborate from anywhere they have internet access.

The Benefits of Cloud Computing in The Insurance Industry

Cost Savings 

Companies that embrace cloud computing stand to benefit from the reduced costs of setting up IT infrastructure. They no longer need to purchase hardware and software as such resources are available on demand. In addition, firms do not need to maintain local servers and data centers that require specialized IT staff to manage and maintain. Organizations also save on the space and power costs associated with conventional IT infrastructure.

Flexibility

Since most cloud services are available on demand, firms have access to unlimited computing resources quickly and can adjust their IT systems to suit business needs. All this enhances the effectiveness and efficiency of internal processes, leading to optimal performance. This is a huge benefit for insurance firms that spend a lot of resources on processes such as formulating policies, completing forms, and fulfilling contracts because all these transactions can be executed on a cloud-native platform.

Improved Customer Engagement 

Cloud computing allows insurance firms to collect and process large amounts of data about their clients. This enables them to gain valuable insights about different customer demographics, customer behavior, and other information that facilitates segmented marketing and customer engagement strategies. Meanwhile, the ability to gain in-depth knowledge of the customer increases opportunities for personalization, which is a new frontier in customer engagement.

Compliance

Cloud platforms make it easier for insurance companies to comply with regulatory frameworks such as the HIPAA. For example, some cloud providers offer business processes as a service, enabling firms to automate systems, standardize processes, and optimize information processing for audit and other compliance requirements. Firms can also hire third-parties to execute compliance after putting all data in the cloud.

Securing Systems with Blockchain Technology

Technology for the insurance industry will become more and more dependent upon cloud computing and secure remote access to vital information.  However, as the insurance industry becomes more dependent upon cloud and remote computing, this technology will become a target for hackers and bad actors, especially with the vast amount of sensitive data that insurance providers access.

Technology for the insurance industry in 2022 and beyond will need to become more secure than it currently is and more resistant to more frequent and increased sophistication of cyber-attacks. I see a future where private blockchain technology will need to be implemented in order to foster the type of security that will be needed.

Blockchain technology will allow for decentralizing control in such a way that individual devices and systems will be able to make security decisions on their own and not depend upon a central admin or authority that can be hacked.  By decentralizing device authority systems, blockchain ensures such attacks are harder to execute (if even possible). Several leading cloud platforms such as AWS and Azure offer blockchain services to their customers.

Conclusion

In today’s world, digital transformation is a term that companies need to adopt as a mantra for growth. Cloud services through Azure, AWS, and Google Cloud bring scalability for insurance companies to allow each employee access to valuable data that would otherwise cost a fortune for any company to invest in. With the emergence of work from home environments, cloud computing brings the power of enterprise capabilities into every home while maintaining operational stability and security. The enhancements in cloud technology have brought the power of analytics and risk modeling to insurance companies with ease. For insurance companies, it is about understanding risk and engaging with their customers, that lead to a more profitable business and a better customer experience.

Your insurance company has been growing over the years and now feel it is about time you played in the big leagues. However, you are not sure about the best cloud platform to use for your it services. Techsperts is just the right partner you need to take you through this transition. We provide computer services and it support to clients in New Jersey. Contact us to speak to our technicians about the type of technical support you need for your company.

Thanks to our colleagues at Velocity IT in Dallas for their help with this article.