The Far-Reaching Value of the Cloud for Life Insurers
Recent years have seen Cloud computing revolutionise the way insurers manage, implement and use the solutions they buy. However, Cloud computing is far more valuable than just increased storage space, safer servers and reduced costs. At a fundamental level, it has enabled insurers to think and plan differently when it comes to using data; and across every part of their processes and services, resulting in exponential changes in the types of services and experiences they can offer their customers. From the insurance value chain, ecosystem partnerships, the types of services and the way they are accessed, to key capabilities — all have been seismically shifted by Cloud computing.
What this leads to is value. For insurance providers, whichever element they are considering across the gamut of opportunities that Cloud provides, there is good news. Nevertheless, the simplicity the Cloud brings is countered by the fact that architecting, planning and implementing such systems can be complex, and requires a range of new skills and expertise both up front and in terms of managing the organisation’s system.
The future will be built largely on such solutions and for insurers identifying just how far reaching an impact the Cloud will have on their PAS, involves four main areas of consideration when it comes to the overall hierarchy they choose.
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They will need to consider infrastructure and how to leverage cloud computing to manage the variable demands on the system. When it comes to the platform itself, insurers will need to look at how Cloud can be used for rapid new deployments across new and existing applications and how it can simplify the management of data and applications day to day. This then pushes into the applications themselves and how various waves of technology can be planned for and implemented into the platform. Finally, looking at the business processes, for example claims management, Cloud can automate the multiple processes that were once manual and input and output data across multiple applications and systems.
At a recent customer summit Guy Moas, VP of Product Development for Sapiens’ CoreSuite product offered a glimpse into how to manage a successful Cloud deployment by outlining the principal components required for a successful implementation.
Cloud deployment, either as a hybrid or full Cloud solution, has become a game changing component in many insurers’ journey to greater efficiency.
By reducing costs, simplifying IT architectures and processes and enabling increases in scaling and data storage, the benefits of moving processes and storing data to the Cloud are compelling for most insurers. There are also significant reasons to shift data into the Cloud when it comes to managing Business Continuity.
There are several major priorities that have emerged when it comes to successful Cloud deployment:
- ‘Container architecture’ is modern technology that offers the most efficient use of resources and allows teams to run upgrades without a noticeable impact on current business and with minimised risk to the core. Coupled with this is the added value of auto scaling.
- Microservices support is another critical component. It runs across all layers and is easy and fast to build. Microservices help deliver faster and create greater resilience in the solution that eliminates production issues.
- Joint ecosystem with our technology partners provides improved data security and has the added bonus of automatic software updates. Overall, using common certified technologies allows greater focus on the product, rather than just on the infrastructure.
- ‘New technology implementations’ is a good example of the use of REDIS in terms of the memory data structure and storage. Having this benefit ensures a reliable high-performance outcome.
It is not enough to deploy a solution to the Cloud on its own. Any deployment needs to be accompanied by all the best capabilities that DevOps allows if it is to deliver to the customer the best access to the benefits that Cloud has to offer.
From my perspective, the overarching goal of implementing a Cloud solution can be wide ranging and vary widely from customer to customer. Nevertheless, it is key for customers of any vendor to be able to keep the benefits of their investment in the Cloud domain for the long term, our aim at Sapiens is to ensure that customers can fully leverage and realise the wide ranging benefits that Cloud deployment brings.
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Nadine Blumberg Nadine serves as Sapiens' Director, Product Management in our Life & Pension division. She is also an actuary and user experience aficionado. Nadine loves to share information about developments in policy admin systems and trends in insuretech.