Cloud Strategy for P&C Insurance Companies

Having the right cloud strategy can drive more innovation, growth, productivity, and digital agility. It is a proven framework for future success.

Nobody likes to be treated like a number.

A great customer experience with real people showing they care feels good. Sometimes it can even create a customer for life. In the P&C insurance industry, this becomes even more poignant for clients who contact us when they need it most.

At the same time, it is difficult for property and casualty insurers to process large batches of claims with speed and personal attention. The use of on-premises systems may increase claim processing times. A strong cloud strategy strengthens digital agility and the customer experience. For me, this is where insurance companies want to operate: at the crossroads of technology and humanity where customers are the raison d’être.

The challenge for insurers: change

Challenges_in_Industry.png

Source: PWC

What has brought insurance companies to this point will not move them forward. The world has changed.

Aging infrastructure, the rise of remote working, latency issues, growing customer expectations for immediacy and online access, and the rise of distributed devices demand a cloud strategy that offers companies property and casualty insurance a scalable network architecture.

At the center of the conversation is the customer experience. Financial services organizations using cloud technology are positioned to deliver faster response times to policyholders and bring new products to market faster.

A cloud strategy for businesses of all sizes

The cloud strategy is a concise view of the role of the cloud within the organization. It is a living document, designed to bridge a high-level business strategy and an implementation/adoption/cloud migration plan.

Cloud_Strategy_Process.jpeg

Source: Avenge

I saw the power of cloud transformation for small insurance companies on a recent visit to Panhandle Farmers Mutual Insurancelocated in West Virginia.

The business sat on a hill with beautiful old trees lining the street. Inside the modest red-brick office building, inefficiency and an excessive amount of paperwork plagued the business. As Panhandle President Art Meadows showed me around, I saw stacked boxes of paper, ledgers, paper claims, and agency cards in the basement. Until they partnered with BriteCore to implement a central cloud-based platform, employees manually processed complaints.

Now Panhandle’s work is digitized and there is greater availability. The company has increased revenue by 200% since automating processes.

Can the cloud lead to greater engagement?

As the use of artificial intelligence (AI) grows, the need for human interaction becomes even more important. This means using the right balance between automation and empathy. In a blog written by Nusrat Atta, Industrial Solutions Specialist, AT&T Business, titled “6 ways insurers can use technology to build human empathyAtta says relying on automation “too much can undermine the trust and peace of mind benefits that are fueling demand for insurance products in the first place.”

Cloud_Strategy_Engagement.png

Source: Microsoft

A cloud strategy enables faster response time for policyholders and streamlines services. The article suggests having a deeper understanding of the customer journey in order to strike the right balance between technology and interaction. I predict that a cloud strategy will actually free people up to add a greater human touch to customer relationships.

Concrete example: Citizens Bank

Cybersecurity building 876

Let’s take a look at a global company that’s been there, done that. Citizens Bank, in partnership with AT&T, has improved its operations and provided a better customer experience through the cloud.

I set aside time to attend the AT&T Business Summit, where AT&T Associate Director Jason Levisee spoke with Stephen White, senior vice president of network services at Citizens Bank.

Citizens Bank, with $187 billion in total assetswanted to offer more agile functionality to its customers and internal team. AT&T provided a custom solution that White said helped his organization achieve strategic results and “transformed 900 branches on this model” in less than 18 months (approximately 80 branches per month).

The financial institution was plagued with an aging network infrastructure, with no Wi-Fi, T1 support or 4G backup. It could not meet the demands of a digital experience. They have since moved from an outsourced operating model to an in-house operating model relying on a custom operating model co-managed with AT&T. Of paramount importance to White’s team: controlling the company’s service levels. To meet this demand, AT&T also built a custom onshore Integrated Service Center (ISD).

My biggest lesson was how Citizens Bank integrated its technology into the company’s business strategy. White said it well when he mentioned that moving to the cloud meant better access via direct access. His initial expectation was to replace equipment and provide Wi-Fi, and position the company for DIA around its cloud strategy. Instead, the company went much further.

Considerations for your cloud strategy

5 Cloud Computing Trends Playing a Major Role in 2021 Beyond

If you are considering adopting a distributed infrastructure using multi-cloud solutions, here are some things to consider: Use a highly secure data infrastructure to store near real-time customer data, Obtain all certificates of compliance needed and provide training before you begin. the migration process. AT&T SD-WAN solutions incorporate security mechanisms online, parallel and in the cloud.

Beyond tactics, perhaps the best path to the cloud is to be open to the possibilities. Many people might think of AT&T as a major provider of home Wi-Fi and mobile services. But the nearly 40-year-old company is actually the largest telecommunications company in the world, working alongside global companies to get them where they need to be. For Citizens Bank, White said AT&T’s efforts “fundamentally changed our ability to support our business.” This is the kind of transformational change and impact that the right cloud partner can bring.

Where to look for answers? The universe of your customers. In a PwC article, author Ellen Walsh summarizes where insurance companies have been and the shifting sands they face. “For decades,” she writes, “we’ve seen insurers emphasize reliability — often in correlation with size. But as attitudes change, flexibility and responsiveness are becoming more important for your wholesale and retail customers, as well as for your employees.

This means it’s easy for consumers to access information, buy insurance products and get the personalized service they need and want. The era of “this is how we do things” does not fly in an era where consumer expectations are high. A solid cloud strategy is the path to digital agility and, with it, a more dynamic customer experience.

Kristan F. Talley