Insurers are increasingly adopting cloud-based core systems, wrote Danni Santana in an informative article for Insurance Networking News (“Cloud-Based Core Still on the Rise”).
Chuck Ruzicka, VP of research and consulting at Novarica, was quoted as saying, “We are passed the tipping point in adoption…Insurers know they want to switch to cloud, but want to understand implications, capabilities and contracts. There is wide enough adoption right now at all levels.”
In a survey done in April, Novarica found that insurers are looking at three main factors when evaluating cloud offerings: vendor security, integration experience and support levels. It’s interesting to note that all of these factors are closely tied to the vendor who provides the solution.
I’ve repeatedly heard the three factors cited by Novarica when discussing the potential of the cloud with life and annuity providers in North America. When thinking about adopting a core cloud solution, insurers want a proven and leading cloud service platform, so they can rest assured that their crucial data remains secure.
In terms of integration, pre-integration with some of the industry’s leading third-party packaged solutions – such as content/print management, eSignature, medical underwriting, non-medical underwriting and reinsurance – is crucial.
And support frees carriers’ strategic IT resources to concentrate on value-added functions. Support should include 100 percent of the offering’s back-office support, maintenance and management of the nightly batch, back-ups and disaster recovery.
In addition to the factors mentioned by Novarica and in the Insurance Networking News article, I know from my conversations with people around the industry that insurers are also looking for high usability and a comprehensive (“all-in-one”) cloud solution. Premium cloud offerings can be accessed through a single URL and are infused with their vendors’ best practices, developed over many years of experience working with top customers.
An end-to-end, fully integrated life insurance offering starts at point-of sale and covers the entire insurance lifecycle – including quoting and NAIC-compliant illustrations, expert underwriting, policy issue, customer service, re-proposal with support for complex solves and “what-if” analysis – through to claims processing.
All-in-one cloud offerings are gaining in popularity because they remove the complexity from the life insurance market, while promoting scalability and productivity.
Let’s continue the conversation. If you are at this week’s IASA event, please visit booth #609 and a Sapiens representative will be happy to speak with you about what to consider in an optimum core cloud solution for success in the life and annuity market.