Insurance Networking

[patricia.speer]

Where does it make the most sense for insurers to employ a cloud-based strategy?

[> BlueCod_Guru]

Studies by leading analyst (Forrester, Celent, etc.) show the use of cloud computing or SaaS on the rise across all industries including insurance. These studies show that cloud computing has a lower TCO over 5 years vs. an on-premise solution. I’ve specifically studied and modelled the 5 year TCO for a hosted vs. on-premise Policy Admin, Claims, Billing & Rating solution. My findings indicate that a SaaS insurance solution provides a lower TCO over 5 years where the cost benefit increases as the carriers DWP volume increases. A small carrier with ~$30m in DWP can realize the equivalent of 1.5 - 3 FTE growth without adding any additional headcount as one key component of overall cost benefit.