The insurance sector has traditionally struggled to keep up with the fast paced nature of technology. Compared to their cousins in the banking sector, insurers have been late adopters of IT for various and valid reasons. These include cost, the security risks associated with new methods, the prevalence of legacy IT, and strict regulatory requirements.
To add to the mix there are also challenges from the changing needs and expectations of customers. Customers expect to be able to transact online and see all their policies in one place, much like they can with their online banking.
Standing in the way of meeting these challenges, however, are two main issues:
- BIG DATA – Insurance companies live and die by their ability to use the vast amounts of data they collect. As such, they need systems and tools in place that can not only collect all the relevant data, but which can also help insurers make sense of all the data. This will help them develop and market new and innovative products to meet their customers’ needs.
- IT INTEGRATION – Many organisations still rely on legacy IT systems, which are unable to cope with the Big Data that insurers rely on. Joining up all the legacy and heritage IT systems into one more efficient and easy to use system is crucial, but many organisations are overwhelmed by this task. An agile approach is essential to ensure a smooth transition by moving over in stages will help with cost challenges, decreases risk of error, and can only have a positive effect on the customers’ experience.
All hope is not lost, however. A cloud solution could provide the answer to many of these challenges. Indeed, the benefits of cloud are nearly endless, with some of the key advantages being cost savings and the ability to handle large amounts of data.
Insurers who are wary about moving their whole organisation over to the Cloud also need not worry. A hybrid cloud approach allows organisations to migrate systems over to the Cloud gradually, giving insurers time to get to grips with cloud, and ensure that they are compliant.
Like all insurance customers, insurance companies are all different with different ambitions and constraints. To find out more about the future of insurance and what your organisation can do to modernise, download our white paper today, or contact us on 0845 2101 500.
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