According to a recent survey, 4 out of 10 insurers allocate 70% of their technology budget to run and maintain existing operations. This leaves a rather small chunk for innovation and development, which may result in insurers struggling to keep pace with the fast evolving market.
When it comes to the competitive insurance industry, technology is a key market differentiator. With customers’ rising expectations, it is imperative to offer the latest in insurance technology.
1. Modern Technology
Implementing a cloud-based solution that is regularly updated and upgraded by a cloud-service provider (CSP), allows your internal IT team to focus on implementing innovative ideas to improve claim management processes. An InformationWeek survey recently reported that 65% of respondents would move to the cloud to give them the ability to quickly meet business demands.
With technology continually being upgraded, when new technology innovations are introduced to the market it’s easier to improve time to market. With big data, portals, and analytics becoming more popular among insurance carriers, it won’t be long before they are considered the norm.
2. Scalability and Flexibility
As your business grows, cloud based technology offers you the opportunity to expand your software to cater to an increase in customers or claims administrators. So even if you are starting off small, the licensing requirements can be adjusted to meet your needs. And even better you only pay for what you use, so costs can be minimized when productivity is low.
Surveys regularly show that security is a barrier to cloud adoption, but in fact, CSP’s have overly secure data centers for storing sensitive data. Consider where your data servers are currently stored; is it safer than a secure data center or do you simply prefer having full control of your server? A recent survey conducted by Microsoft found that 94% of businesses that recently converted to cloud technology actually reported seeing an improvement in security after switching.
Another great perk associated with cloud technology is the ability to log in from any device with an Internet connection. So if your computer crashes you haven’t lost all of your data; you can simply log in using a different machine.
If you are interested in seeing a demo of the latest in claim management technology, feel free to contact us for a demonstration.