With all the talk about ChatGPT and generative AI, it’s important to remember that the cloud is the foundation. Insurers must move to the cloud and replatform to enable innovation and growth with these new technologies. At the same time, they are combing through legacy blocks to determine the business value of converting them. Doing so opens the door to decommissioning legacy systems and reducing technical debt. Some carriers are leveraging their enterprise cloud initiatives, while others are adopting hosted approaches that can accelerate product innovation. Some companies go a step further and leverage their own DevOps teams to host and manage it. Policy Management System (PAS) Illustration. What these carriers have in common is: Replatforming to the cloudhelped unlock value by strengthening the digital core and the capabilities it enables.
Re-platforming for flexibility, innovation and growth
For example, a major insurance company used its enterprise cloud migration to modernize and migrate its core policy administration system (PAS) to the company’s AWS cloud. The move gave the company the flexibility it needed to better meet customer needs through product and service innovation. Within his year, the company integrated decades of product innovation (the insurance company’s “secret sauce”) from his four legacy platforms into his new PAS in the cloud. In addition to reducing technical debt, we can now build, test, and launch new products at scale. This is a competitive advantage in meeting rapidly changing consumer needs.
Cloud flexibility meets changing business needs
But what about changing business needs? With many insurance companies offering multiple lines of business, each with different priorities, the flexibility of the cloud can help improve operational cost management and It helps you take advantage of the resources you have. Consider the example of a Tier 2 multiline carrier. They have their own AWS instances and an enterprise team of DevOps personnel to ensure the right technology is deployed and used properly across the enterprise. Additionally, the team responsible for the core PAS has its own DevOps team, which manages specific instances of the PAS and supporting platforms such as .net and OpenShift in addition to traditional WebSphere JBoss. Simply put, they connect the selected vendor’s platform to his PAS. Additionally, the company’s PAS uses a containerized architecture, which allows it to leverage a platform-as-a-service model to scale efficiently and effectively.
Cloud for business agility and competitive advantage
Cost isn’t the only factor insurance companies are considering when moving to the cloud.according to Aite Novarica Report, insurance companies place less emphasis on cost reduction in their cloud strategies. Instead, they are focusing on the business agility and new capabilities that the cloud offers. These factors have the potential to deliver far greater competitive advantages, especially when a strong digital core backed by the cloud is combined with data and AI, as evidenced by our recent research. There is a gender. Comprehensive Corporate Reinvention Report. That’s where insurance companies can truly harness the power of the cloud. We are seeing this flexibility play out in the form of new and innovative product launches through new distribution channels and increased market reach for insurers.
As such, insurers continue to evaluate the feasibility of migrating legacy blocks to alleviate some of their technical debt and reduce costs, while leveraging the power of the cloud to drive new opportunities. Masu. See how three life insurance companies are tackling the cloud. Future-ready insurance company webinar.
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