By now, many of you have been hearing all the grand talk about cloud computing: how it enables companies to get rid of their IT costs and instead pay by the drink for capabilities provided by an outside vendor—who assumes the worries about upgrades, bugs, versioning, provisioning and all that other nasty stuff.

But let's face it—insurers are not going to abandon the systems (and processes embedded within) that they have spent years building and refining. In many cases, these internal systems provide competitive advantage. And, there are many concerns about data security and customer privacy.

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