My previous blog post detailed three advantages of cloud computing and managed services for insurers. Here are two more important benefits.
Optimized Risk Management and Disaster Recovery
Using cloud computing insurers can help manage risk and fraud, as well as improve and reduce the costs of vital disaster recovery. Cloud computing enables insurers to:
- Make data back-up, disaster recovery and business continuity easier and less expensive, because data can be mirrored at multiple redundant sites on the cloud provider’s network, across multiple regions
- Integrate all risk data, such as risk and control assessments, loss events and key risk indicators within a single environment, enabling insurers’ IT staff to make better decisions about the business risk and the regulatory context of IT breaches
- Measure, aggregate and report risk-based solvency capital to regulators and other key stakeholders in a repeatable, auditable fashion
- Identify fraud and undesirable behavior and isolate recovery opportunities throughout the claims process. Insurers can identify and mitigate claims with a higher likelihood of determining fraudulence, and undertake this detection earlier in the lifecycle across a wider range of fraud schemes
- Use the cloud’s additional computing power to support more sophisticated risk modeling to improve financial planning, actuarial reserving and risk management activities
Data centers require that IT departments spend a lot of time on hardware set-up, software patching and other time-consuming IT management chores. Insurers can shift these tasks to the cloud and will reap the benefits, including:
- Increased productivity from being able to reassign IT resources to achieve business goals
- Quick and easy set-up of cloud computing services within the organization in a matter of minutes results in less time wasted on adjusting settings, such as choosing a password or selecting which devices you want to connect to the network, and rapid adoption for enhanced productivity
- Automatic updates that must only be downloaded save time and don’t require any expertise to implement
Cloud computing and cloud managed services compel insurer to make the shift towards a business strategy and an allied IT approach that fully embraces the power and advantages it has to offer. A vital cog in this wheel of business reinvention in the age of the cloud is the third-party provider, who will offer the most innovative and flexible cloud solution dedicated to the industry-specific needs of the insurer.
Sapiens has partnered with all the leading cloud providers to offer its policy administration systems and accompanying services over private and public clouds. Sapiens’ cloud deployment includes full infrastructure for operations, plus the option of choosing cloud-related managed services delivered by Sapiens’ highly experienced professional services team. The cloud and managed services proposition is accompanied by an affordable pricing scheme.
If you’d like to learn more, please check out Sapiens’ NEW white paper, How Cloud Computing is Reshaping the Way Insurers Work.