Enterprising Developments

Moving Transactions to the Cloud? How to be Ready

Joe McKendrick
Insurance Experts' Forum, August 6, 2010

Moving applications to the cloud can be disruptive. And if they are transaction-intensive applications, the process can be doubly disruptive.

That's because today's insurance companies need real-time interfaces to their customer interactions. Linh Ho, director of product marketing at OpTier, shared some of her observations with me on the challenge of moving transaction-heavy applications or processes to a cloud environment. It can be done, she says, but requires highly focused management that can look across all the stages of the transaction's execution chain—from the front-end input to the hand-off to back-end systems.

Linh calls this emerging area “business transaction management,” in which transactions are mapped to required technical components and tracked in real time across the execution chain.

Often, fear of losing control of transactions is a deal-breaker for cloud computing projects, she says. “So, claims, medicare, actuarials and any critical service that is either revenue-generating or client-impacting will just have to wait unless they have the ability to ensure minimal to no disruption to the business and their end-users’ experience.”

For a highly regulated industry such as insurance, she notes, “many are concerned with security, change impact, SLA compliance, losing sight of business transactions traversing through the cloud, provisioning and billing. So as an insurance company, where do you start and how do you start?”

Employing business transaction management practices help provides IT managers “a way to baseline application performance before, during and after cloud adoption,” Linh explains. Such practices also provide visibility in the event of service disruptions.

In an insurance company moving operations to the cloud, for example, a business transaction management dashboard and process would keep tabs on the availability of accurate and up-to-date information, as well as on customer, policy and claim information downloaded from carrier systems to agency systems.

The bottom line is that insurance companies are under the gun to be highly responsive to evolving market and customer demands, Linh says. “Becoming a 'real-time' enterprise is a necessity for survival. In order to improve customer acquisition and retention rates, organizations require availability of accurate and up-to-date information both online and at the contact center straight-through processing to automate external and internal customer-facing transactions. They require real-time integration between a plethora of in-house and external IT systems, spanning several generations of technology across many different platforms.”

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (2)

This is a great post about the emerging area of business transaction management. The new BTM industry portal has more information on many of these topics that may be of interest: http://www.businesstransactionmanagement.com

Posted by: Vishal M | September 25, 2010 3:53 PM

Report this Comment

Interesting article. Thanks, Joe, for your input on the topic. Nastel Technologies' Business Transaction Management (BTM) solution, AutoPilot, is used by a number of customers in the insurance and healthcare insurance industry to monitor their claims processing applications. AutoPilot is used specifically to reduce the mean time to know (MTTK) for problems that impact or might impact this key application. Most of these firms have strictly enforced compliance requirements including Service Level Agreements (SLAs). Not meeting their SLAs is directly related to revenue loss and customer dissatisfaction and could even mean loss of their license.

As providers like these move their applications to the cloud they, need three things: first, the assurance that they can instantly answer the question, "Where is my claim?" This means real-time deep-dive visibility. Second, the cloud also demands elasticity which is the capability to immediately and transparently handle increasing loads. Finally, new regulation for financial services and healthcare demands ever increasing transparency. A BTM solution is necessary in order to provide the deep-dive "evidence" that proves that the transactions executed were in the best of interests of claimants and compliant with government regulation.

Posted by: Megan P | August 10, 2010 8:51 AM

Report this Comment

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Why You Can't Take a Wrecking Ball to Your Legacy System

If you think of enterprises like collections of neighborhoods that need to be nurtured, you quickly see that architecture, not obliteration, is the key.

Ten Stats About Social, Mobile, Analytics, Big Data, Cloud and Digital

Deployment rates have grown in the year since Novaricaís last study on these topics.

The Apple Bounce: Are Wearables Truly this Big?

I just donít believe it; only 720,000 Androidwear watches were sold in 2014. Apple has been amazingly successful in so many markets. Were they always first? No, a lot of products before. Were they always best? Again, no, superior devices have fallen.

How Quote Data Can Deliver Powerful Business Insights

Quote data often is disregarded due to its volume, but properly managed can offer insights into product and pricing strategy, expense control, cross selling and upselling.

Product Configurators: Moving Insurers toward Self-Sufficiency

Insurers may like a vendorís full service model for updating policy content rules, but they donít want to be held captive if the vendor doesnít offer fast speed-to-market.

Trends in P&C and L/H/A Policy Administration Systems

Novarica research shows that nearly 40 percent of P&C and life/health/annuity carriers are currently replacing or planning to replace a policy administration system.