The number of insurers using cloud computing has tripled in the last few years, from less than 20% to more than 70%, according to our new research from a study of 89 insurer CIOs. As cloud computing has gone mainstream, most insurers are incorporating cloud into their technology architectures, and they are seeing significant benefits in speed, flexibility, and capacity from using cloud over traditional architectures.
Cloud security is now seen as an advantage, rather than a disadvantage. Many carriers are wary of handing control over to a third party as they are used to controlling their own environments. However, there is a sense that the greater security capabilities of the leading cloud providers actually offer an advantage for those who have already adopted cloud.
While the benefits of adopting cloud are many, it is understood that this adoption is not a magic bullet. As with any new beneficial technology, getting the most out of cloud and realizing cost advantages requires a mix of careful planning, evaluation, management, and upskilling.
The growth of cloud computing, also known as Infrastructure as a Service (IaaS) or Platform as a Service (PaaS), has come out of the growing acceptance of Software as a Service (SaaS) adoption in insurance. SaaS is especially used for applications like customer relationship management or financials. In a recent brief, Best Practices for Evaluating SaaS Core Systems, we predict that by 2020, over half of new core application purchases by insurers will be SaaS systems.
More on cloud adoption in insurance can be found at: https://dev-novarica.pantheonsite.io/cloud-adoption-insurance-trends-issues/.
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