P&C insurers already are reaping the benefits of cloud-based software in segments such as damage estimating and medical bill review. However, when it comes to core processing, many continue with traditional on-premise deployment.

That's about to change. Today, P&C insurers have access to enterprise-grade systems for policy admin, claims and billing on a pay-as-you-go model in the cloud. The question for insurers is no longer, "Will cloud computing work for me?" Now it's, "What business do I want to be in, insurance or IT?"

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