Cloud offers silver lining to insurance industry
Insurers who choose to adopt a software-as-a-service (SAAS) model will reap the benefits of this investment very quickly… it ensures a much lower cost per policy in the short to medium term by negating the need “to throw tin and processing power” at the problem.
Hardware and staffing costs are the two biggest line items on any CIO’s budget. By doing away with the need for huge ‘tin’ upgrades and outsourcing the day-to-day “running” of the environment, CIO’s will be able to “halve their IT budgets” in a way that will ensure business continuance and competitiveness in an overtraded market.
Susan van Zyl, Head of Marketing and Sales at JMR Software, adds “Implementing a cloud-based insurance platform enables the organisation to remain focused on its core business while, at the same time opening up a new world of opportunities. A SAAS offering should help to eliminate the traditional CapEx approach to technology, by moving instead to an OpEx model, thanks to the pay-as-you-go delivery model. At the same time, such an approach should also assist in optimising sales, underwriting, and claims efficiency and effectiveness, thanks to rules-based workflows and self-service offerings.”
Life insurance and pension companies are fully aware of the many hidden costs associated with the use of manual processes and inefficient systems, but while the desire to improve is there, many of these organisations remain uncertain as to how to optimise their processes and reduce their cost per policy.