Smart carriers leverage the innovation tools offered by cloud services to enhance their digital ecosystems.
Carriers that recognize and use the innovation opportunities offered by cloud services will outperform their competitors in building expansive ecosystems. With improved agility and reach, they will take advantage of many of the lucrative opportunities that ecosystems can create over the next few years.
Some far-sighted insurance companies are already using cloud services to accelerate innovation and strengthen their digital ecosystems. They use powerful cloud-based technologies to launch a range of new ecosystem offerings.
Our research shows that insurance companies that, for example, combine cloud-based ecosystems with analysis systems can reduce the time it takes to develop business solutions. by up to 70 percent. For example, they can use advanced risk modeling and price analysis to focus on new marketing and sales opportunities. Such ecosystem innovations enable insurers to take advantage of business opportunities much faster. They also help airlines improve the efficiency of operations such as customer handling and claims handling.
Technology leaders see the cloud as an innovation catalyst.
We found that organizations with a history of being aware of the potential of new technology. have been quick to discover the innovation opportunities that cloud computing offers. They see cloud services as an innovation catalyst. About 95 percent of these "technology leaders" have adopted sophisticated cloud technologies. These include serverless computing, service-based features (FaaS) and event-driven architectures.
Technology leaders are far ahead of more cautious users. Only 30 percent of "technical laggards" recognize the cloud as an engine for innovation. Most people still see the cloud as a cost-effective data center.
The COVID-19 pandemic threw the innovation features that cloud processing offers into the spotlight. Insurance companies such as AIA in Hong Kong, Poland's PZU and San Cristóbal in Argentina moved quickly with their cloud platforms to develop and launch innovative customer services. They quickly rolled out these critical services across their ecosystems.
Several insurance companies have also looked at cloud services to change their business processes.
- Mitsui Sumitomo Insurance in Japan has developed a cloud-based sales support system that combines human expertise with artificial intelligence (AI). The MS1 Brain platform helps corporate agents better understand customer needs and point them to the most appropriate products and services.
- In Spain, Mutua Madrilen͂a has improved its customer service by developing an intelligent cloud-based solution to help support staff. EME Virtual Assistant answers many different combinations of questions on almost a thousand topics via text or voice messages.
- VIG in Poland uses cloud-based technology to review its claims and improve the customer experience. Its AI-enhanced claims solution uses advanced data analysis to automatically process claims from initial loss reporting to smart claim segmentation, routing, assessment, settlement and finally to adjust claims reserves.
By leveraging the speed and flexibility of cloud services, insurance companies can quickly build appealing customer services that improve their ecosystems. Ideally, these services should provide immersive and interactive experiences. This will strengthen relationships with customers. The smart application of cloud services also enables operators to extend beyond their traditional distribution channels to reach a multitude of new customers.
By using cloud platforms to deliver services at a fast pace and to promote innovation in their organizations, progressive insurance companies are imitating large digital technology companies. They provide their customers with more attractive and rewarding services while driving into new business sectors.
Consumers are hungry for ecosystem services.
Some smart insurance companies have already started using their cloud services to strengthen and broaden their ecosystems. . AXA, for example, expanded its reach to the mobility sector through its partnership with Uber. Similarly, AG Insurance in Belgium entered the smart-home business by using its ecosystem to start its "Phil at Home" facility. The cloud-based offering protects older people who are alone by providing them with a set of monitoring and support services. In China, the Alibaba company Ant Group (formerly Ant Financial Services) uses the scope of the retail group's cloud-based ecosystem to provide credit to consumers who do not have access to financial services. Ant customers can also use the group's ecosystem to submit vehicle accidents and support digital photographs.
Consumers are hungry for ecosystem services. More than half of the consumers we surveyed showed interest in ecosystem-based health and wellness services. A similar proportion were enthusiastic about home health care, which combines insurance with, for example, building maintenance and services. Many are also keen to use personal finance services that they can access through ecosystems.
But consumers are chosen for what they pay for. For example, only a third of consumers want to pay for well-being or home care. Even fewer are happy to share money to get help with their finances.
Smart ecosystem strategies that use cloud services to drive innovation will enable insurers to deliver services and experiences that better reach, delight and retain customers. Transport companies will be able to accelerate the growth of new businesses while also protecting their traditional markets from increasing competition.
In my next blog post, I will discuss how insurers can benefit from their transition to cloud computing and seal closer ties with innovative insurtech companies. In the meantime, you can check out the links below. They provide lots of useful information on effective cloud strategies. Otherwise you can send me a message. I'm anxious to hear from you.
Cloud Imperative for Insurance (PDF)
Considerations for an Effective Cloud Strategy (blog post)
Cloud Services and Solutions
Cloud Migration Services and Strategy  Subscribe to more from Accenture Insurance.
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