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Cloud Computing Enables Digital Insurance

Cloud computing is the perfect enabler for Insurers to implement the digital version of their company faster and cheaper. Due to the current changes in the market, Insurers need to speed up their digital ambitions and deliver excellent mobile and online self-service functionality to their customers, distribution and service partners

Market challenges

It is “The End of Business as Usual” (Brian Solis), Digital is reshaping the landscape for Insurers fast and most Insurance companies have difficulties to adapt to these changes. Mobile and social media will change sales, distribution and operating models and require the adaptation of new marketing and service strategies and innovative technologies. New technologies and services are available for Insurers to change rapidly and become a full Digital Insurer. Online and mobile applications are delivered fast and cheap, social media are providing all necessary technical integration and services to integrate with the Insurance business, big data analytic tools, services and cloud computing are available to create a digital competitive edge and change the current paradigm.

Digital Insurance ambitions

Every Insurer has a strategy to become a Digital Insurer in the coming years. The result will be different for every Insurance company depending on the internal change capability. A Digital Insurer has digitalized the interaction with customers, distribution and service partners as far as possible using mobile and online applications for new Refurbished Laptops business, policy servicing, renewals, expiries, claims and enquiries. It includes digital and social marketing and big data analytics as well as for example rule-based claims management. The Digital Insurer has fully digitalized the internal processes, internal staff and management have access to online and mobile applications, are able to work from anywhere at any time and use their own devices. These changes will change the operating model from a traditional administrative organization to a sales and service driven organization. More employees will work in the sales, distribution and customer services compared to employees working in the traditional processing and administration departments. The Digital Insurer is able to create competitive products with a fast time to market, excellent services and will operate cheaper than today. The Digital Insurer is available anywhere in the world, anytime and on any device.

The benefits of digitizing the Insurance Company are:

    • Ease of doing business
      • Mobile and online applications providing new and renewal business functionality including illustrations, quotations and payment.
      • Advanced self-service tools for claims notification, endorsements and enquiries.
      • Minimized and fully automated underwriting referrals.
      • 24×7 availability on any device, anywhere in the world.


    • Fast business growth
      • Big data availability and analytics.
      • Personalized advertisements and offers.
      • Daily campaigns and pricing changes.
      • Digital cross and up selling.
      • Higher retention.


    • Reduced operational cost
      • Straight through processing.
      • Minimized and BPM controlled manual work.
      • Paperless organisation.
      • Digital integration with service partners.
      • Rule-based underwriting for simple mass products.
      • Rule-based claims management for simple mass claims.


    • Improve service to customers and partners
      • All information online and mobile available including advanced call center access.
      • Fast claim handling by digitalized notifications and rule-based decision making.
      • Claims service personnel “on the road” with mobile devices.
      • Up and download functionality.


Cloud computing

Cloud computing is distributed computing using the Internet as a real time communication network. Cloud providers offer integrated IT services charged based on usage. Cloud computing is provided by specialized IT service organizations providing public clouds out of data centers around the world. Applications, data storage and databases are provided as “Software as a Service” and are available anywhere, anytime and on any device using the Internet. There are many ways to use cloud solutions (SaaS, PaaS, IaaS) and implement cloud solutions in public, private, hybrid and multiple clouds. In Public clouds, infrastructure, platforms and software are shared with other clients of cloud providers, in private clouds these are only shared internally within the company. Theoretically, big global companies are able to implement a private cloud. However, the risk of failure is high due to internal governance, culture, insufficient knowledge and budget. If companies are not comfortable with a public cloud and want to implement a private cloud, the advice is to outsource the full IT infrastructure including applications to cloud-specialized IT companies and make use of their existing infrastructure in a hybrid cloud.

The Digital Insurer in the cloud

Cloud computing enables a Digital Insurer to implement a full digital service for customers, partners and employees. Cloud computing provides software as a service and infrastructure on demand and connects all sorts of online and mobile applications for doing business with the Insurer anytime, anywhere on any device. Online and mobile applications connected to the integration backbone in the cloud are made available for customers, partners and employees. The back end systems, databases and integration backbone of the Insurer are implemented in the cloud and protected with all necessary security measures and systems to prevent compliance problems. Cloud computing comes with flexible scalability and digital projects may start small and when successful fast and easily grow in bandwidth and storage without any issues with IT delivery times. Digital insurance and cloud computing together will reduce the cost of Operations and IT substantially.

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