The Future of Insurance
Keep Your Feet on the Ground and Head in the Cloud
May 16, 2016
Has weather ever kept you off the roads and away from the office? Have you ever feared that your data and clients’ data has been exposed to external threats? If the answer is yes to either question, it is more important than ever for your organization to develop a business continuity plan to ensure your business remains financially and operationally viable regardless of external factors or unforeseen events.
Market intelligence firm IDC’s 2015 survey reported that 72% of small and medium-sized businesses (SMBs) expect to increase their investments in business continuity over the next 12 to 24 months. And 81% of SMBs are considering improvements to their existing business continuity strategies. Business continuity plans require you to assess and adopt technology, tools, and processes that ensure your business continues to operate at all times – particularly when customers need you the most.
From a systems standpoint, the cloud enables agencies and brokerages to protect important data in a secure online environment within off-site data centers. The cloud is a delivery mechanism for IT services and data exchange over a secure network, providing on-demand, remote access to information. Data centers deliver a high level of security and also provide redundancies for power and back-up sites, so in the event a data center is in a disaster location, the redundant site will take over to ensure business continuity.
Moving core software applications to the cloud is fundamentally a decision about how to maximize your investment in the people, systems and strategies to grow your book of business more profitably. With a cloud solution, agencies and brokerages can increase their return on investment as applications and supporting software update automatically, so your business continually runs the latest software without incurring delays or extra expenses that may be required for manual updates.
5 Reasons Why You Should Adopt the Cloud
With spring weather season in full swing and cyber threats on the rise, I encourage you to consider adopting the cloud for these five reasons:
- Improve your business continuity
With the cloud, your critical applications and data reside in a secure data center, which provides redundancy for power, Internet access and a physical infrastructure that offers greater protection from natural and man-made disasters and other unpredicted business interruptions. The ability to remotely access and use your core business systems in the event of a disaster enables your agency or brokerage to maintain operations and continue to serve your clients anywhere, anytime.
- Reduce costs to maintain and manage IT infrastructure
The average agency or brokerage staff has .5 dedicated IT personnel, meaning that many insurance agencies and brokerages operate without dedicated IT personnel and lack the expertise to deploy and manage multiple IT applications required in business today, as well as the hardware and software needed to run these systems. Cloud technology eliminates many requirements for hardware and software on-site and can significantly reduce your budget and capital costs for IT. It also reduces the need for personnel to manage IT infrastructure, freeing up time and money to focus more on core insurance activities.
- Increase information security and data management
With weekly news stories on the latest corporate data breach, maintaining data protection has become table stakes for business success and client loyalty. In the cloud, you gain an extra layer of data defense by maintaining critical business information in secure data centers. In addition, your business benefits from implementing more efficient data management and data access processes. The cloud ensures you are running the latest version of your software applications, including any antivirus programs. By offering an exponential amount of data storage, the cloud allows you to focus on growing your business and clients without the concern of running out of storage space.
- Provide better customer service
If weather keeps you at home or travel has you on the road, the cloud provides you and your employees remote access to up-to-date client and policy information using virtually any connected device, enabling you to reach and service clients at any time regardless of location. Instant access to information enables agents, CSRs, producers and others to provide clients faster service that can lead to higher productivity. In addition, reduced staffing for IT allows you to assign more employees to client-facing activities that improve customer service and satisfaction.
- Increase your ability to grow fast
The flexibility of a cloud solution can be ideal for insurance agencies and brokerages that need to scale their business quickly to meet changing needs, such as a business acquisition or rapid growth, without the time and expense of adding or integrating new IT capacity. Since applications are hosted remotely in data centers and accessible via the Internet, new users can quickly connect to systems of record and gain access to data across your business enterprise, improving collaboration and productivity.
Today’s insurance marketplace continues to move at an accelerated pace, requiring you to provide information in a more timely and effective manner in order to enhance your competitive value and serve as a trusted resource. Integrating cloud solutions and emerging communication channels enables businesses to increase their operational flexibility and security while reducing downtime and bolstering connectedness to both an agency or broker’s internal operations and clients, enabling you to uphold your role as a trusted advisor and better service clients at times when you are needed the most.
How is your agency using the cloud for business continuity? Share your thoughts below.
Kris Hackney, executive vice president of customer experience, is responsible for Applied’s customer delivery strategy and operational execution for the company’s Professional Services, Support and cloud-based solutions. She is the former vice president of Worldwide Enterprise Solutions & Services for Chicago-based SPSS Inc., a leading global provider of predictive analytics software and solutions, now part of IBM.