With all the talk around ChatGpt and generative AI, it’s important to remember that the cloud is the foundation. Insurance companies will need to reorganize by moving to the cloud to enable innovation and growth through these new technologies. At the same time, they are looking closely at their legacy blocks and determining the business value of transforming them. Doing so could eliminate legacy systems and reduce technical debt. While some airlines use their company’s enterprise cloud initiatives, other carriers have taken a hosted approach that can accelerate product innovation. And others are taking it a step further, leveraging their DevOps team to host and manage them Policy Management System (PAS) Example. Common threads between these carriers are Reform into the cloudhas helped to devalue by enhancing the digital core and effective features.
Replato form for flexibility, innovation and growth
For example, one major insurance company has used its company’s enterprise cloud migration to modernize its core policy management system (PAS) and migrate it to its company’s AWS cloud. The move provided the company with flexibility to better serve its customer needs through product and service innovation. Within a year, carriers integrated decades of product innovation (insurers’ “secret sources”) from four legacy platforms into new PAs in the cloud. In addition to reducing technology debt, they are now able to build, test and launch new products on a large scale. This is a competitive advantage in meeting the rapidly changing needs of consumers.
Cloud flexibility addresses changing business needs
But how about business needs changing? With many insurers offering multiple business lines, each with different priorities, cloud flexibility improves management of operational costs and leverages skilled resources. For example, we’ll take a tier 2 multiline carrier. They have their own AWS instances along with the enterprise team of people at DevOps. Additionally, the team responsible for Core PAS has a unique DevOps team that manages specific instances of PAS and supporting platforms such as .NET and OpenShift, as well as classic WebSphere JBoss. Simply put, connect the platform of your chosen vendor to the PAS. Additionally, PAS uses a containerized architecture, allowing efficient and effective scaling using the platform as a service model.
Cloud for business agility and competitive advantage
Cost isn’t the only factor insurance companies are considering in the cloud transition. According to Aite-Novarica ReportInsurance companies have less emphasis on reducing the costs of their cloud strategies. Instead, they see the business agility and new features that the cloud offers. These factors can provide a recent competitive advantage, especially when a powerful digital core supported by the cloud is combined with data and AI. Enterprise’s Full Reinvention Report. It’s where insurance companies can truly leverage cloud power. This flexibility is revitalized in the form of new innovative products launched through new distribution channels, expanding the market footprint of insurers.
Therefore, while insurers continue to assess the possibility of moving legacy blocks to reduce some of their technical obligations and reduce costs, they are leveraging the power of the cloud to promote new opportunities. See how our three life insurance companies are approaching the cloud Future-Ready Insurance Company Webinar.
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