MGA : TPA
“THE INSURANCE INDUSTRY CLOUD TRANSITION STARTED THROUGH INFRASTRUCTURE AND DATA MIGRATION … BUT IS GRADUALLY TRANSITIONING TO THE CORE PLATFORMS FOR DATA-CENTRIC CUSTOMER AND PRODUCT DEVELOPMENT ”
DANIEL COLE SENIOR MANAGING DIRECTOR FOR FINANCIAL SERVICES , PUBLICIS SAPIENT
Publicis Sapient ’ s Daniel Cole continues : “ Cloud-native platforms , together with welldefined architectures , the right tools and ways of working , have the potential to help insurers move quicker and cheaper whilst providing operationally resilient , scalable and secure solutions , so long as they are used in the right way .
“ The insurance industry cloud transition started through infrastructure and data migration , as in many other industries , but is gradually transitioning to the core platforms for data-centric customer and product development . The development of new cloud-native insurance platforms , coupled with the plethora of digital and data platforms for the cloud , is gradually unlocking the potential – but there is still a long way to go .”
What ’ s the future of the cloud in insurance ? Last year , EY surveyed the CIOs , CTOs and cloud strategy leads at more than 70 European insurers to gauge their approach to cloud migration – both now and for the future . At that time , it found that half of respondents had migrated less than 10 % of their operations onto the public cloud , with only 7 % of insurers migrating more than 90 %. This suggests that , even with the progress that will inevitably have come during the pandemic , there may still be an adoption gap among insurers in relation to cloud technology .
Summarising the findings of the survey , EY ’ s EMEIA Financial Services Insurance Technology Leader , Chris Payne , says : “ Most insurers want to execute their public cloud roadmap . However , there ’ s also a substantial portion of respondents who want to develop a public cloud strategy as their number one near-future initiative . Our initial analysis shows that 80 % of insurers that only offer life insurance have the execution of a public cloud roadmap in their top-three public cloud initiatives , much higher than insurers that operate in other lines of business like non-life and health .
“ The second priority – building new , cloud-native applications – requires extensive technical knowledge . Insurers must be prepared to build capabilities in serverless computing and Infrastructure as Code ( IaC ), for instance , if they are to deliver on these initiatives .
“ Almost 40 % want to migrate legacy systems to the public cloud , which may require a rethinking of the strategy to benefit from cloud-native services . Large insurers comprise 80 % of this group , which is not surprising given how legacy constraints limit digital transformation efforts .”
70 January 2023