Before COVID-19, most insurance companies had already started migrating their IT properties to the cloud. Now the cloud transformation is accelerating to increase the cloud conversation.
As the pandemic disrupted markets around the world, leading companies in many industries doubled their cloud and other technology investments. Accentures CEO Julie Sweet called this a "Henry Ford moment" and a "once in a digital age global transformation."
Cloud has become a value-based discussion that drives CEO requirements and supports corporate priorities. This height pulls the case for clouds beyond the constraints of savings on IT operating costs.
I Reimagining insurance: The new cloud imperative, co-authored with Steve Murphy, Jim Bramblet, and Keval Mehta, we talk about accelerating in the cloud. And we're exploring how insurers can use the cloud to manage their biggest business challenges.
The benefits of cloud acceleration in insurance
For insurers, there is a strong correlation between cloud transformation and revenue growth. Those who lead in SaaS, PaaS and adoption of native cloud applications tend to have higher revenues. And with global insurance revenues expected to increase $ 1.4 trillion over the next 4-5 years, acceleration in the cloud can now offer competitive advantages.
With all events in 2020 and the beginning of 2021, insurance companies are facing not only changed financial conditions but also a changed customer. From private consumers to entrepreneurs to group and special insurance buyers, there is greater uncertainty.
Insurance customers have new requirements for cloud-activated digital services that contain use- and behavior-based offers. We see clear evidence of this in our Global Insurance Consumer Study 2021 where consumers who say they would share significant data for personal services to prevent injury and loss increased by 54% in just two years.
Insurers have seen how cloud solutions enable flexible, remote work, and the workforce of the future will expect some level of continued flexibility after the pandemic. Our latest labor force research shows a link between what employees want and what managers want when it comes to days in the office. Fortunately, cloud-based personnel analysis can offer insights both in the office and in remote settings to respond to difficulties that affect career opportunities, performance and morale.
| Environment, Social Affairs and Governance (ESG)
ESG is raised on the corporate agenda in all industries. Green cloud provides the opportunity for measurable progress in server use, flexibility in workload and energy-efficient infrastructure.
New threats have emerged and older platforms do not match. Hacking and cyber attacks, including ransomware, threaten the security of insurance systems, operations and customer confidence. Public cloud platforms have matured and now offer stronger controls than local solutions with security and compliance measures.
Starting with business challenges over technical challenges can help accelerate the cloud transformation into an elevated, well-structured strategy and build a data-driven culture. Work with business stakeholders on a mix of cloud use cases with the potential to illuminate the path and inspire others to follow.
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.