Cloud Computing is the Winner in a World Impacted by COVID-19
New SMA Blog by Karen Furtado, Partner, Strategy Meets Action —
Through the countless discussions that have occurred this past two weeks with many insurers, there have been winning strategies that have shone through as insurers have been executing their business continuity plans. And there have been certain challenges on the other side. Were you a company that needed the support of people to be in the office to “load the tapes” making sure all those batch jobs on the mainframe computer kept running? Did you have challenges making applications available to your now-remote workforce? Were your call centers still able to fully support agents and policyholders?
One of the greatest successes in this market has been the performance of cloud computing. I remember, back in 2012, discussing the advantages of cloud computing. As an industry, there was just experimental acceptance of this capability – usually relegated to sandbox environments and testing. Jump forward to 2020 – and we see that 84% of all core system buying transactions were cloud based. Not only have we leapt forward in our use of cloud, but we are now in mainstream acceptance that core systems – some of the most critical systems in the enterprise – are now being commonly deployed in the cloud.
Let’s consider for a moment some of the advantages of systems that are deployed in the cloud – just to name a few that have been experienced over the past two weeks:
- Cloud provides a virtual computing environment which also enables virtualized managed services.
- New environments can be created to dynamically test changes.
- Access is available – for all that need to utilize the applications regardless of physical location.
- Cloud decreases the need for “onsite” resources – elimination of tape loads, etc.
Investments that insurers continue to make to transform their organizations are bearing fruit today (even though we do not want to have to go through a pandemic to realize this truth). The digitally enabled experiences that insurers are providing to their customers and distribution partners are critical. Never before has it been more important to provide full transparency to the customer. For some, you are experiencing the world as it was before COVID-19 – a world of transformation that was moving forward, understanding the importance of the digital experience, and looking at ways to provide these capabilities. Today we are in a state where these digital experiences are a reality.
If the events of the past few weeks find you considering cloud deployment for your applications moving forward, refer to our recent research report, Cloud and Core Systems: Top Ten Strategic Considerations, for insights on buying cloud deployed software solutions. Cloud will be one of the levers that insurers can utilize to meet the digital mandate that is no longer for the future – but is here today.
About the Report
Cloud computing has become a fundamental requirement in the digital world and will play an even greater role as we move further into the new era of computing. Core systems have been swept up in this trend, and many new implementations are being deployed in cloud environments. This SMA Research report tracks the trends for core systems in the cloud over the last four years and identifies ten strategic considerations for core systems in the cloud.
The ten considerations fall into two categories, one that has implications for planning and implementing, the Design/Build phase of cloud adoption, and the Run/Manage phase, with implications for putting to use the actual capabilities once adoption and implementation are complete.
Click here for the table of contents or to purchase the report.
About The Author
Karen Furtado, a Partner at Strategy Meets Action, is a well-known authority on insurance technology and how it fuels transformation within insurance companies. Her focus is helping insurers prepare for the future of the industry through the decisions they make today. Karen’s deep understanding of how to effect change guides insurers in the development and implementation of their transformation roadmaps. Her comprehensive knowledge stretches across core systems, the implications of InsurTech, and enhancing adaptability and flexibility in a changing market. Her commitment to promoting innovation, encouraging the exploration and adoption of new technologies, and developing proactive ways to plan for the future draws those seeking an edge. In a highly competitive world, Karen brings exceptional knowledge and experience to the challenges of connecting solutions to business and IT requirements.
During her career in the insurance industry, Karen has leveraged her business and technical experience to enable insurers to meet a wide variety of challenges. Many insurers have benefited from her advice that spans a broad field of expertise including enterprise application strategies and implementations, the influence of a rapidly changing business and technology landscape, and outsourcing services.
Karen’s opinions on insurance, technology, and transformation are highly regarded and often sought after by the press. She contributes to a number of insurance trade journals and is also a frequent keynote speaker at major industry conferences.
About SMA
Exclusively serving the insurance industry, Strategy Meets Action (SMA) is an advisory services firm offering retainers, research, consulting, events, and innovation offerings to both insurance companies and solution providers. Learn more about SMA at www.strategymeetsaction.com.
SOURCE: Strategy Meets Action (SMA)