Digital networking is one of today’s most powerful trends – for consumers, but above all for businesses. And of course that applies to the insurance industry too. While the fintech scene disrupts the business models of the financial services sector, insurgent insurtechs are bringing new digital ideas to the insurance market. So insurance companies are driving their own digital strategies all the faster. Cloud computing plays an important role as a vital component of a digitisation strategy.
Cloud computing provides an opportunity to access storage, databases, programs and applications via Internet and intranet, regardless of place and time. Apps, services and data are no longer installed on a local computer, but are provided as a service, via either a private or a public cloud. Whereas private clouds run over a company’s own servers or data centres, public clouds are hosted by external providers. Users no longer buy IT in the form of software or servers – they simply rent it.
IT from the cloud is already mainstream, according to a recent study by Bitkom Research on behalf of KPMG, an advisory firm. It shows that more than half of all insurance companies in Germany make use of cloud computing: 53 per cent of the company’s surveyed used cloud services last year, according to the study. The cloud is now seen as a key driver for the digitisation of business processes, reports the paper, which was published in May 2016. What insurance companies find particularly interesting is the Internet of services, above all software as a service (SaaS): SaaS licensing models give users access to software via the Internet – they pay a fee to cover use and operation, which in some cases saves on acquisition and operating expenses.
In a period where new regulatory requirements have to be implemented permanently, interest rates generate virtually no return and both cost pressure and competition keep getting tougher, one thing is right at the top of insurance companies’ agendas: savings. SaaS offerings can help, because they have enormous potential, especially in terms of cost control, productivity and reaction times. The use of SaaS can substantially reduce the cost of IT. There is no need for expensive purchases and investment in hardware and software. Savings are only offset by the variable costs for the effective use of services. Costs are transparent and can be calculated in advance. This results in greater cost and planning security.
And that’s not all: maintenance and administration work is no longer required, which enables companies to focus even more sharply on their core business. Furthermore, SaaS offers great flexibility, since every service can be provided separately and tailored precisely to the client’s requirements.
Looking at customer relationship management (CRM), there is again a clear trend towards cloud computing: a survey by analysts Techconsult reveals that one in two companies think that Internet services make sense for CRM and have already looked into the topic. The advantage is that depending on their access rights, employees, brokers and clients can all retrieve data quickly in the office, on the road or at home – and across all national borders.
Among the most important criteria when deciding for or against cloud solutions are data protection, data security, standardisation and storage location. Because in the financial and insurance industries many countries have strict rules about where customer data can be stored and who can have access to it. So security solutions for the cloud have to meet additional requirements, above and beyond those that apply to conventional solutions. Insurance companies should therefore only choose cloud solutions and software architectures that meet their standards and specifications in terms of security, compliance, risk management and data integration.
The complete solution msg.Insurance Suite is your entry point to the cloud: This holistic management platform for insurers and pension funds consistently exploits the advantages of cloud computing and offers the highest quality and security standards at the same time. It is a technologically sophisticated system that covers all insurance operations across all business lines and automates all the necessary business processes.
msg.Insurance Suite and its many add-on modules are the benchmark when it comes to standardising processes and making them accessible online, expanding digital customer contact and customer service, and ensuring better integration and compatibility between new and existing technologies. The solution maps all core processes from product development, sales and policy management through to payment processing, loss provisioning and payments. It is made up of various components, which come largely pre-assembled and can be combined depending on the client’s requirements. This reduces the time to market significantly. Transactions are not only available to the back office, but also to brokers and consumers by means of online portals or apps.
msg.Insurance Suite can be run as a cloud solution in a high-performance data centre, either as individual elements or an entire platform. Security and data protection have the utmost priority. Operations run according to established processes in line with the applicable data protection policy and which meet all international security and quality standards. In accordance with the SaaS model, every functional unit available on the platform can be provided separately as a service. Regular software updates also ensure compliance with all regulatory and legal requirements and guarantee that the latest system release is used. A flexible cost structure, high service quality, less work for your own IT function, strict security criteria and compatibility with existing systems – why not discover msg.Insurance Suite for yourself and boost the productivity and efficiency of your insurance operations.
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Complete solution for fully digitised insurance business msg.Insurance Suite