Is the insurance industry a follower or a leader? When it comes to cloud computing, the industry has taken a cautious approach while watching the corporate giants blaze the trail. However, this is changing and the insurance industry now seems poised to take advantage of cloud computing to gain a competitive advantage.

Cloud Technology

According to Capgemini, a leading consulting, technology and outsourcing services firm, there are four primary influencers pushing the insurance industry’s need to adopt cloud-computing services:

    1. Increasing Cost Strains

    2. Need for Better Business Agility

    3. Call for Fast Deployment

    4. Expanding Global Footprint

Can cloud computing really address the #1 bottom-line pain point? Published reports seem to indicate that cloud computing certainly holds cost-savings promise.

According to a IT Spending Priorities Survey in InformationWeek, 58 IT pros using or adopting public cloud services were optimistic that cloud computing could lower costs: “While 59% think cloud computing will raise costs short term, 74% say it’ll lower costs long term. Fifty-nine percent think it’ll lower operating costs long term, and half think it’ll lower capital costs.”

If tackling and keeping down costs tops your IT priority list, cloud computing may be the right platform for you.