In Their Own Words: Insurers Talk Cloud
May 4, 2015 11:32 AM
From public to private cloud, or software- or infrastructure-as-a-service, there are nine key reasons more insurance carriers are turning to cloud deployments of core systems software. For more information, see Why Berkshire Hathaway, Hiscox Eschew the Mainframe
1. Starting Up
The cloud computing model has given me comfort, because I know Im dealing with people who are not only [supporting] me, but also other clients, says Berkshire Hathaway Specialty CIO Jamie Roser. The whole production support process has been more efficient because Im dealing with someone whos doing it as their profession.
2. Cost Structure
It defers or eliminates the costs of having any additional infrastructure or expertise to maintain the database, says Kevin Brannon, AVP of system architecture and technology for Canal Insurance.
3. Staffing
Before selecting a cloud solution, We explored the cost of running a co-location, the cost of extra equipment to run two systems during our migration, the cost of additional staff, says Eric Rhoades, SVP, information services for Co-operative Insurance Companies. Upkeep of running our core systems has always been a challenge for us."
4. Compliance
One of the big benefits was the coupling and integration with the ISO, says Adam Edelstein, COO for Hiscox USA. It gives us the benefit of staying relevant and up to date on all of the updates.
5. Software Updates
We get the benefit of those updates without having to go through the disruption and cost of incremental releases, says Hiscoxs Edelstein.
6. Security
Our security challenges and IT compliance audits are really difficult to keep up with, adds The Co-operatives Rhoades. The more I learn about security and audit compliance, the more happy I am that it is off-site.
7. Scalability
We enjoy the benefit of not having to incrementally invest in infrastructure as the product continues to scale, says Hiscox's Edelstein. "The ongoing economics of a cloud solution are quite attractive.
8. Ease of Use
Customers and agents "expect easy-to-use systems that are intuitive and always available, says The Co-Operative's Rhoades.
9. Disaster Recovery
Because of its California location, A primary hazard that we insure for is earthquake, says Jon Christianson, COO for Palomar Specialty Insurance. So right there it makes a lot of sense to not have all of our systems in an earthquake-prone area.