The insurance industry plays a significant role in most economies because of the amount of money in terms of investments it holds and the daily flow of transactions. With changing business scenarios and rapid technological adoptions all across the board, the industry also needs to adapt itself to be ahead of the curve.
The critical requirement here is to implement advanced and scalable technology models that will help deliver products and services to the consumer faster. Cloud computing is one such model that has attracted a lot of attention over the past decade or so in the insurance industry. Many enterprises within the industry have adopted the cloud models that suit them – be it public cloud, private cloud, or hybrid cloud.
Insurance Industry and the Cloud
Cloud computing provides all types of computing, such as application development, storage, data processing, and analytics, etc., in the form of services. Since it is internet and server-based, the resources on cloud computing models have the flexibility of not being tied to physical infrastructures, allowing authorized users to access it from anywhere they want to. With remote office and service structure becoming the norm, cloud is here to stay for a long time, and the insurance industry has recognized its potential.
The various use cases of cloud computing in the insurance industry include:
- Building services and user infrastructure
- System modernization
- Business analytics
- Compliance and regulation
- Building new applications
- Emerging market search and implementation
Advantages of Cloud Adoption for the Insurance Industry
As mentioned, cloud adoption is now happening rapidly in various industries, including the insurance industry. What are the specific benefits cloud brings to the industry? Here’s a look.
- Cost-effectiveness – Cloud services come in a pay-as-you-use model, so there are no humungous upfront costs or resource wastages happening. Also, many labor-intensive tasks for the IT departments can be moved to the cloud for faster processing and results. All of these aid in cost reduction.
- Improved agility – Cloud computing ensures agility in overall workflow by streamlining processes, faster implementation of new tools, wider access for authorized users, and more rapid testing and feedback mechanisms.
- Faster Deployments – Setting up traditional IT infrastructures required a lot of time and resource expenditure from insurance companies, both large and small. With expert cloud providers in the play to create cloud environments, deployments are much faster and hassle-free. Companies have to inform the providers what they need, and providers will build solutions fast enough.
- Unparalleled Scalability – Like most businesses, the needs of the insurance industry are dynamic. They change according to various factors in the market. Cloud computing offers a system where resources are easily scaled up or down or however the business requires, and these changes are readily available as well.
- Optimized Security and Risk Management – Cloud providers are adept in security practices and can guide companies in regulatory compliance as well. A stable cloud environment can also integrate risk data, assessments, and indicators for the insurance industry and help companies against data breaches and related issues.
- Reduced IT Management – Since the cloud provider takes care of all computing resource needs, including upgrades, scaling, infrastructure, deployments, security, and whatnot, there is less, or in some cases, zero need for IT management practices.
How VEXXHOST Can Help
With the right cloud provider, a company can expect business operations to get better from day one of deployment. We have seen how cloud computing is impacting the insurance industry. Among the various cloud environments, OpenStack-based clouds are in high demand, as they offer excellent flexibility and business agility for companies. At VEXXHOST, we provide many OpenStack-based cloud solutions, including dedicated and highly secure private cloud environments. We help companies across numerous industries, including the insurance industry get enterprise-grade clouds without vendor lock-ins or licensing fees.
Speaking of private clouds, you can now run on a fully agile and customized cloud from VEXXHOST, with no licensing fees and smooth 2-week migration. In fact, we’re ready to put our money where our mouth is. We’re so confident in being able to save you at least 20% or more on your current cloud infrastructure expenditure that if proven wrong- we’ll give you $1,000 credit to our public cloud.
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