With all the hype surrounding ChatGPT and generative AI, it’s important to remember that the cloud is the foundation of it. Insurers must transform their platform and migrate to the cloud to enable innovation and growth through these new and emerging technologies. At the same time, they examine their old blocks to determine the business benefits of their conversion. This opens up the possibility of decommissioning the legacy systems and reducing their technical debt. Some carriers leverage their company’s enterprise cloud initiatives, while others take a hosted approach that allows them to accelerate product innovation. Others take it a step further and use their own DevOps team to host and manage theirs Policy Management System (PAS) Example. A common thread among these carriers is Transition to the cloudwhich has helped them add value by strengthening their digital cores and associated capabilities.
Renew the platform for flexibility, innovation and growth
For example, a leading insurer used its company’s enterprise cloud migration to also modernize its central policy management system (PAS) and migrate it to the company’s AWS cloud. The move gave the company the flexibility it wanted to better serve its customers’ needs through product and service innovations. Within a year, the carrier consolidated decades of product innovation – an insurer’s “secret sauce” – from its four legacy platforms to the new PAS in the cloud. Not only are they reducing their technical debt, but they are now able to develop, test and bring new products to market at scale – a competitive advantage when it comes to meeting the rapidly changing needs of consumers.
Cloud flexibility meets changing business needs
But what about the changing needs of the business? Because many insurers offer multiple lines of business, each with different priorities, cloud flexibility helps them better manage operational costs and leverage skilled resources. Take a Tier 2 multiline carrier, for example. They have their own AWS instance, as well as a corporate team of DevOps people who ensure the right technologies are in place and properly deployed across the organization. In addition, the team responsible for the core PAS has a dedicated DevOps team that manages specific instances of the PAS and supporting platforms such as .net and OpenShift, as well as classic WebSphere JBoss. Simply put: you connect any provider’s platform to your PAS. And their PAS uses a container architecture that allows them to take advantage of a platform-as-a-service model for efficient and effective scaling.
Cloud for business agility and competitive advantage
Cost isn’t the only factor insurers consider in their cloud migrations. According to one Aite Novarica ReportInsurers place less emphasis on cost reduction in their cloud strategies. Instead, they focus on business agility and the new capabilities that the cloud offers. These factors can provide a much greater competitive advantage, particularly when a strong digital core, underpinned by the cloud, is combined with data and AI, as our recent results demonstrate Total Enterprise Reinvention Report.. This is where insurers can really take advantage of cloud performance. We are seeing this flexibility translate into new and innovative products being introduced through new distribution channels, expanding insurers’ market presence.
So as insurers continue to explore the feasibility of migrating legacy blocks to reduce some of their technical debt and reduce costs, they are also leveraging the power of the cloud to unlock new opportunities. See how three life insurers are approaching the cloud in our Webinar for future-proof insurers.
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