Insurers should accelerate into the cloud following the upheavals caused by the COVID-19 pandemic. Instead, many stay. Seven major myths block their progress in the cloud.
The COVID-19 pandemic has thrown the cloud computer at the top of insurance companies' strategic agendas around the world. Without the flexibility and resilience of on-demand cloud services, many insurance companies could not have kept their businesses afloat during the upheavals triggered by the pandemic. and claims volumes are almost certainly climbing, now it's time for insurers to push ahead with their cloud strategies. They should take advantage of the benefits they have already understood and push more applications and resources into the cloud. The cost savings and revenue growth achieved through such strategies will be crucial in the post-pandemic economy.
Many insurance managers I talk to hold back. They are reluctant to accelerate migration to the cloud. Our research shows that insurers have only 1
"Tipping in the cloud is not a good approach."
Tipping into the cloud is not a good method. By stopping migration to the cloud, prudent insurance companies risk falling behind their more progressive competitors. They will lack opportunities to improve efficiency, increase innovation, scale up applications and launch new offerings. They can even endanger their survival.
Why do insurers not take advantage of cloud computing?
Cost, caution and confusion.
Few of the insurance executives I talk to do not see how their companies would benefit from increasing their use of cloud computing. We found, for example, that 68 percent of insurers have already assessed how they could move their older applications to the cloud. In addition, 58 percent of operators have developed cloud strategy driving maps with key performance indicators that mark their expected milestones. Most insurance companies are ready to start moving much larger workloads to the cloud.
"Cloud computing has matured considerably in recent years."
But still they hold back.
I often hear a familiar list of problems about the cloud. These doubts may have been valid in the past. But they are history now. Let's look at the most common problems.
- Deterrent Rules. Insurance authorities do not allow public cloud services or data to be located in a foreign country.
- Security threat. Critical data is more vulnerable in the cloud.
- Older burden. The cost of migrating custom applications to the cloud is prohibitive.
- Early disappointment. Initial cloud initiatives have not achieved their economic goals.
- Capacity limitations. Early cloud projects could not be rolled out to other business units.
- Dependent risk. Large cloud service providers can lock in their customers.
- Personnel issues. Employees are not ready to embrace the cloud.
Today, none of these objections should discourage insurers from moving more complex workloads and critical applications to the cloud. Cloud computing has matured significantly in recent years.
For example, Amazon, Microsoft and Google have invested billions of dollars in their cloud companies to improve the reliability, performance and security of their services. They have developed a range of tools and systems to help their customers migrate their infrastructure, platforms and applications to the cloud. They have also invested heavily in technical and industry-specific skills. Sometimes they even work with their customers to build new business offerings that use their services.
Some progressive companies are already using cloud technology to promote their innovative business strategies. Deutsche Bank, for example, recently partnered with Google to develop a series of cloud-based financial products. Allianz has teamed up with Microsoft to expand its global insurance platform
Major cloud service providers have also worked closely with regulators, industry representatives and customers to meet the specific needs of key markets and geographies. Data integrity issues have, for example, been handled by cloud service providers through, among other things, the installation of many local data centers. In Europe, insurers have access to nearby data centers in almost all countries. In addition, the data protection and system security that the large cloud providers offer their customers are consistent and often exceed anything that insurers can implement on their own. makes it easier for companies to move more of their businesses to the cloud. Leading software applications from, for example, SAP, Oracle, Salesforce and ServiceNow are delivered to users as SaaS (cloud-based-as-a-service) offerings. Several professional service companies also gather their skills and product resources to better guide their customers into the cloud. For example, Accenture recently increased its cloud capacity in Europe by acquiring French service providers Cirruseo and Gekko. It has also just announced a $ 3 billion investment in its new Cloud First business unit. With cloud revenues in excess of $ 11 billion, Accenture is a leading provider of services and tools for companies moving to Amazon, Microsoft and Google cloud platforms. We have completed more than 20,000 cloud projects in 168 countries.
"The cloud value proposal is stronger than ever."
Subscribe to more from Accenture Insurance.
Disclaimer: This document is for general information purposes only and does not take into account the reader's specific circumstances and may not reflect recent developments. Accenture disclaims, to the extent permitted by applicable law, all responsibility for the accuracy and completeness of the information in this presentation and for any acts or omissions made based on such information. Accenture does not provide legal, regulatory, auditing or tax advice. Readers are responsible for obtaining such advice from their own legal counsel or other licensed personnel.
Disclaimer: This document refers to descriptive trademarks that may be owned by others. The use of such trademarks herein is not an assertion that Accenture owns such trademarks and is not intended to represent or imply the existence of a link between Accenture and the legal owners of such trademarks.