The benefits of cloud utilization in the insurance industry are apparent, say partners and executives at market research and business consulting firm, Frost & Sullivan.
“Insurance companies that overcome internal obstacles early and increase their cloud usage more quickly will be able to gain precious advantages in scalability and flexibility and excel at creating personalized but efficient customer experiences,” says Frost & Sullivan vice president and partner, Roberta Gamble.
In its recent report summarizing virtual insurance industry think tank sessions held in 2021, Modernizing Customer Experiences Drives Cloud for the Insurance Industry, Frost & Sullivan says as competitive pressures intensify, cloud-first insurers will gain advantages over their rivals.
“The biggest challenges for insurance companies in remaining competitive through modernization efforts is creating an effective digital transformation strategy that permeates the organization,” they write. The firm adds that some of its research shows that more than half of what stymies digital transformation is the task of getting everyone in an organization on board.
“Security is another perceived issue that hinders rapid modernization,” they add. “While the cloud’s ability to secure data, apps, and systems can be as good, if not better than on-premises infrastructure, insurance companies may need to convince regulators and their stakeholders of this.”
Cultural obstacles are as important to overcome as technological ones, they continue, adding that technology “is essential to realizing a bespoke and efficient customer experience,” the report states. “Using the cloud gives insurance companies the flexibility and agility to make these solutions a reality.”