The insurance business is reaping the benefits of cloud computing, which include improved internal procedures, new customer acquisition, and policyholder loyalty. In terms of corporate operations, production dynamics, and relationships with customers, users, employees, and suppliers, cloud computing has had a significant impact across all industries.

To gain a deeper grasp of this influence, we’ll start by consulting industry data.

According to a Gartner report published in 2018, cloud users will double by 2021, and the market for this technology will grow from $153 billion in 2017 to an anticipated $302 billion by 2021. According to another Gartner research, 90 percent of businesses will employ “cloud” services by 2022. Furthermore, according to LinkedIn research, Cloud Computing skills are the most in-demand by employers across all industries.

In this article, we’ll look at a specific industry: insurance. We’ll concentrate on three factors in particular, which, in a word, comprise a company’s entire range of operations in the insurance industry. We’ll begin by improving internal processes, then go on to attracting new clients and maintaining existing customer loyalty.

But first, let’s take a look at how the digital transition has impacted the industry.

The insurance industry and it’s Digital Transformation

The field of insurance has been fundamentally transformed by digital transformation.

Digital has tremendously accelerated procedures and simplified the conversation between firms and customers, just as it has in other industries. It has also resulted in a market that is now flooded with new participants, making the task of maintaining allegiance more difficult than ever.

One approach to summarize these shifts is to examine the user (and hence the insured), who was formerly a figure at the end of business processes but is now at the heart of it. This highlights the critical importance of personalization as well as the need for increased investment in Customer Service and Customer Communication departments.

Bain & Company and Google have identified seven important technologies that are driving digital transformation in the sector in more depth. These are technologies that have already had a significant impact on the insurance industry and will continue to do so in the future:

Cloud Computing solutions are at the heart of modern IT architecture.
New online sales methods rely on Big Data collecting and, as a result, using enhanced targeting;
More advanced analytical tools (Advanced Analytics);
Machine learning, for improving decision-making tools for both internal processes (such as risk management) and external dialog with customers (to attract or retain consumers); Internet of Things Consider the immense impact that having more automobiles (or residences) connected to the network will have on the industry; distributed ledger” technologies (DLT). These are data-based systems in which all nodes in a network have the same copy of a database that may be read and edited independently. Virtual Reality is another area where blockchain technologies could have a significant impact. Imagine being able to reconstruct a traffic collision in 3D, with all necessary details, and possibly based on data received through IoT.
Given this brief but essential list, one thing is clear: all of these innovation drivers will rely on Cloud Computing and its increasing computing capacity, simultaneous cost reductions, enhanced flexibility and scalability, and huge omnichannel possibilities.

In the insurance industry, there are three major benefits of cloud computing.
Next, we’ll look at the three key themes that surround the most essential benefits of cloud computing in the insurance industry.

Cost-cutting and process improvement

As expected, the first benefits of Cloud Computing solutions are visible within the company, with the financial benefits being the most prominent.

Because of on-demand and pay-per-use optics, companies that use cloud systems save a lot of money on hardware and software purchases. They are no longer need to purchase local servers and data centers, which require specialist employees to monitor and maintain, as well as physical space and electricity, 24 hours a day, seven days a week.

And, because most services are on-demand, you may have access to a lot of computing power quickly, easily, and with the flexibility, your business requires, all without having to invest in expensive gear or software.

All of this is in favor of improving performance and internal processes, as well as freeing up memory and computing resources on individual workstations within the business by hosting platforms, applications, and databases remotely.

Document production, such as regulations, forms, and various types of contracts, can also benefit from optimization and efficiency. This is an extremely costly (and complicated) aspect of insurance company processes. Such operations can now be managed entirely digitally and in the cloud.

Obtaining new clients

Cloud computing enables you to collect and analyze massive volumes of data (“Big Data”), as well as to choose the most important, useful, and “deep” data (dubbed “Smart Data” and “Deep Data” respectively).

In other words, it’s a matter of looking for the digital traces that we all leave on the internet daily.

It’s worth noting that millennials constitute the greatest web audience in Italy, outnumbering everyone else. In Italy, this translates to roughly 13 million people who prefer to use the internet (76 percent of whom are always online) to research and select products that meet their needs; this same group is also more likely to give away their personal information in exchange for newsletters, downloads, quote requests, and other useful information or services.

Once these “traces” have been collected (in an omnichannel manner, of course), it will be easier to identify the true audience and further segment this audience so that targeted, personalized actions can be sent to them.

We recognize that taking a data-driven approach to acquiring new clients is by far the most effective strategy.

Instill trust in policyholders

According to a Bain & Company study, acquiring a new client costs 6 to 7 times more than retaining an existing one through a positive Customer Experience.

As a result, we can see why every company devotes money and attention to the Customer Service department. The primary goals are to improve engagement, retain clients (customer loyalty), and launch effective up-selling and cross-selling initiatives.

Now, what is the most effective strategy to strengthen the customer dialogue, make it more effective, and increase trust?

The solution is a tried-and-true strategy: It’s all about tailoring your approach to each consumer, each individual, based on their unique qualities, behaviors, and needs. This is currently at the center of new strategies and future developments.

Companies may gain a better understanding of their clients by utilizing the power and prospects of Cloud Computing. It’s the next step in personalization, going beyond segmentation to achieve a genuinely one-to-one discussion between company and customer in an interactive and omnichannel setting.

Consider how important this is in the insurance industry, which has a high number of potentially dangerous touchpoints (think of the collection and payment phases; during the claims process, including dealing with unsatisfied customers).

As a result, an increasing number of insurance businesses are turning to companies that specialize in cloud and customization services.