It seems like everybody in the insurance world is talking about the cloud. As insurers are undergoing digital transformation, the cloud is becoming a necessity. But what is the cloud really? And why are insurers looking to integrate it into their systems and operations?
Cloud native software is an API-based application that is hosted in the cloud and is accessed via a web browser. Cloud based software opens up accessibility that can elevate and upgrade carriers capabilities for the long term. According to S&P Global’s 451 Research, “More than 90% of businesses use or expect to use a multi-cloud environment”. Being cloud native has many benefits and allows us to extend our services to clients and open the possibilities of innovation.
Breathe Life’s platform is hosted entirely on the cloud, meaning that our carrier clients access the platform through API’s and without any need for hardware or software installations. According to Celent’s North American Life Insurance Priorities and Pressures report, “CIOs have little interest in on premise installations, especially not enterprise solutions; only 5 to 10% of CIOs voiced any interest in on premise.” This also means that the platform is highly accessible to both our clients and our engineers from anywhere. This allows for real time interactions with the platform, facilitating communication which allows us to streamline the decision making process and fine tune the platform to the carrier’s needs. We are able to be extremely detail-oriented and our clients are able to work with us on an elevated scale, improving and speeding up the build process. This has a large impact on overhead costs by minimizing the need for hardware storage and maintenance as well as by increasing efficiency.
Even after the launch of the platform, Breathe Life handles all upgrades and maintenance of the software to ensure that functionality is always maximized and carriers continue to have the most up-to-date and innovative platform and tools. We are able to continually implement new technologies and features throughout the partnership, and likewise quickly mend any issues that may arise, ensuring continual optimization. Carriers have no need for an internal team to handle the platform as our team is always available to help, upgrade or fix, thereby alleviating this responsibility from the carrier and allowing them to focus on their customers. The accessibility that the cloud brings to us and our customers also extends to external vendors which allows our platform to integrate with any external solutions our customers require. The cloud allows further flexibility of partnerships and enables smooth communication which brings carriers more options and capabilities to serve their end-consumers. This is all enabled by easy remote collaboration, powered by our API capabilities and cloud technology.
Data is increasingly becoming the business world’s most valuable resource, and as insurers are starting to leverage analytics, integration into their core systems is crucial. Cloud technology enables our platform to do exactly that, giving carriers access to important data and analytics to better understand their customers and business. The cloud allows storage of large amounts of data (otherwise known as big data), to a degree that would be impossible using hardware storage. Carriers are able to produce more detailed and higher quality insights that are accessible only through cloud computing and they can use this data to analyze their consumers: dive into their needs, their buying behaviors and profiles to identify patterns and connections. This is then leveraged to optimize underwriting and customer questionnaires, and significantly improve risk management for higher accuracy. The cloud enables data to be accessed wherever and whenever they choose.
The adoption of cloud technology also has significant implications on information safety and security as cyberattacks and data breaches become more prevalent and concerning. Highly available cloud infrastructure has the ability to add additional data protection measures and enforce more secure backups; thus ensuring the integrity of customer data and the confidentiality of proprietary business information.
As life insurance carriers are undergoing large digital transformations, cloud technologies are being leveraged to lower costs and increase efficiency while integrating data analytics into the core of the business. Combined, these benefits strengthen a carrier’s ability to create strong customer relationships and optimize life insurance processes beyond what has been done in the past. The industry is evolving into a new era and the cloud is at the core of that change.