With only a few vendors providing insurance-focused cloud services, cloud computing is yet to be widely adopted by the insurance industry.
However, things are about to change as more and more insurance companies are becoming aware of the great potential benefits of the cloud.
Here is a look at how cloud computing can be beneficial to insurance providers.
Cost-Effectiveness
Since the advent of cloud computing, cloud providers have been investing large sums of money in the development of data centers and infrastructure.
By doing so, they are able to cut their costs significantly and make cloud services more affordable. Insurance companies do not have to invest a lot of money to adopt cloud computing, and they can also save substantially on IT infrastructure, equipment and labor.
The cloud eliminates the need for expensive IT hardware, software and licenses, and it enables insurers to increase productivity with fewer employees. Cloud services can be acquired on a weekly, monthly or yearly basis, depending on the needs of insurance companies.
Higher Storage Capacity
Insurance companies are one of the types of businesses that need to store large amounts of information.
The cloud is a suitable computing option for them because it can accommodate and store more data than personal computers.
It provides seemingly unlimited storage space and eliminates the need to upgrade computer hardware, which reduces overall IT cost.
Increased Agility, Accessibility and Responsiveness
In the past, most insurance companies prefer to keep their IT in-house. However, it is beginning to make less financial sense for them to do so as advances in cloud technology are opening up many new possibilities.
Cloud computing can help insurance companies perform a wide range of tasks more efficiently, including policy and claims processing, billing administration, damage estimation and others.
It also enables them to respond quickly to the needs of their customers and unexpected business changes. Since cloud data is stored online, employees of insurance companies can perform their work duties anytime, anywhere, as long as they have an Internet connection.
Ease of Deployment
It has traditionally been relatively time-consuming to install, customize and maintain insurance systems.
By adopting cloud computing, insurance companies can set up a virtual server instance and deploy cloud software solutions easily. This makes it possible for them to launch new products and services quickly.
In cloud installations, the integration of software occurs automatically, and insurance companies can select applications and services that best suit their needs.
Reliable Backup and Recovery
Data that resides on the cloud is easier to back up and recover.
Cloud providers are able to provide secure and reliable backup and recovery solutions for insurance companies to ensure that they will not lose their important data in the event of a system crash or disaster.
There are some cloud systems that function solely as backup repositories of data that is located in local computers.
As cloud technology continues to advance, it should not be long before it will be widely embraced by insurance companies.
About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from cloud computing to online reputation management.
