insurance industry trends 2015 and beyond: #3 cloud computing
TRANSCRIPT
INSURANCE INDUSTRY TRENDS
#3 CLOUD COMPUTING
1. Big data & analytics2. Mobility
3. Cloud computing4. Telematics/IoT
What’s hot in insurance
A few things about cloud
What the big guys say about cloud
Cloud benefits
Cloud Computing across insurance value chain
Deploying cloud computing in insurance
Cloud workloads functions
Cloud concerns
Specific use cases
Cloud computing in insurance
A few things about the cloud
Rapid deployment
Variable cost, price
per use model
Lower ongoing operating costs
than IT owned and managed in-house
Cloud enables insurers to reuse IT resources
more efficiently, extending into the complete business
infrastructure
Limited or no CAPEXHighly
adaptable and scalable
Best option in peak
moments
Cloud changes the way insurers create and deliver products and services, reach and interact
with customers, collaborate with partners, manage their value chains, assess and manage
risk, and generate revenues.
“Cloud computing is part of our growth strategy. It could materially change how we develop applications and apply technology to business, especially when it comes to cost structure, investment and agility...Cloud computing is not just an external service, it is also internal. We are looking at evolving a hybrid model and developing our own internal cloud computing capabilities”. Vincent Cohan, SVP & Chief Technology Officer and Sauro Nicli, Global Information Officer, AXA
Cloud in Insurance Facts
Lower-cost and/or higher-
efficiency
Capture real-time intelligence about an
accident situation through mobile devices and mobile applications
Customer centricity through unified customer data
Sales enablement - place email and whiteboard applications in the cloud so sales agents,
employees, field representatives and developers can collaborate in real time, regardless of the
device they use
Provision and scale computing resources to meet periodic demand for actuarial and
financial workloads.
Support agent management, including sales
document
Support critical functions such as
billing and underwriting
Enables a service oriented business models and applications that give access to new
customers and markets & increase customer loyalty and retention
Support for the integration with
third parties/agency
systems
Preserve data for audits
ING is very keen to deploy cloud computing technology — essentially the separation of applications from the underlying infrastructure — and to get to a point where technology is a service easily, efficiently and effectively provided to the company, regardless of location. In order to persuade the business that virtualization and cloud computing is the way forward, we have had to focus strongly on the business benefits — scalability, flexibility and cost” Tony Kerrison, Head of Infrastructure Services, ING N.V.
Cloud computing across insurance value chain
Source: Capgemini Analysis
Cloud computing opportunities for insurers
Source: Accenture
BPO offerings from various vendors
Various solutions from vendors
SAP ERPOracle AppsMS Office/Exchange
Windows/.NETLinux/SolarisJ2EE
Buying hardware
Salesforce.comWorkdayOracle on DemandGoogle AppsMicrosoft Dynamics CRMForce.comWindows AzureGoogle Apps Engine
Buying computing timeAmazon EC2vCloudIMB Blue Cloud
Traditional solutions
Cloud solutions
Deploying Cloud computing across insurance value chain
Insurers use a mix of cloud services delivery models based on price, risk and standardization
Source: Capgemini Analysis
Cloud Workloads Characteristics for insurers
Workload/functionsBusiness Processes
as a ServiceSoftware as a
ServiceInfrastructure as a Services
Private Infrastructure as
a Service
Development & testing
Information sensitive
Mission critical
Collaboration
High data volume & analytics High compute volume & analytics Relatively disconnected functions
Suitable Average Bad
Cloud concerns
Security
Interoperability of
analytics
Data governance - quality control discipline for assessing, managing, using, improving, monitoring, maintaining and
protecting your organizational information
Application integration Reliability
Data aggregation and integration - The information needed for analytics is often stored in multiple databases within your enterprise,
on the cloud and in different geographic locations.
How insurers use the cloud?
Windows Azure
Disaster Protection - Generali US Branch wanted better disaster protection for its business due to local weather extremes. The insurance provider is using Microsoft Azure Site Recovery to replicate its virtual servers and data to the cloud, eliminating disaster-caused interruption, reducing disaster recovery (DR) costs by 65%, and can easily test its DR setup.
Windows Azure
Disaster recovery - Microsoft Azure StorSimple helps them meet compliance requirements of keeping one set of data backup image offshore at a low cost. The solution integrates SAN storage on-premise with automated data protection in the cloud, while enabling geo-replication of data both locally and from Microsoft’s datacenters overseas.
Windows
Azure
High performance - Milliman uses Windows Azure to distribute highly complex, mission-critical computing tasks across cloud-based resources. The result is supercomputer-level processing capability that is enormously scalable and powerful, yet can be delivered at a lower cost and with fewer IT resources than through traditional on-premises IT deployments.
Amazon WS
Traffic spikes support - The company built its health insurance platform and analytics solution on AWS in just three months. By using AWS, the company can scale to support the traffic spikes of open enrollment season as well as support more than 125 production changes a day that continually improve customer experience.
Amazon WS
Cost control - In an effort to control its IT costs, the company turned to AWS as part of a hybrid computing environment, using the AWS cloud in combination with data centers in California and Nebraska to run actuarial tasks that are used to set pricing and create new products. Using AWS, Pacific Life can quickly scale up additional compute capacity with less cost and IT overhead than by adding to its own data center assets, while benefitting from built-in security features in AWS products that help Pacific Life with compliance issues.
INSURANCE EXPERTISE
• Broad experience in delivering complex services and solutions that integrate sales, marketing, customer service and other processes to large insurers and brokers
• We have developed and successfully deployed a complete insurance solution, with modular architecture, available on premise & on Cloud, bi-directional integrated with SAP, Microsoft & Oracle
Insurance expertise
INSURANCE EXPERTISE• Website/intranet development • Self service portals • Online policy selling • Online claims management • Enterprise e-learning and intranets• Employee management & training • operations support systems development
and deployment• Mobility:• Mobile apps development, SFA, document
management• Big data and BI solutions• CRM/ Sales Force Automation • Business Process Management
EITG SOLUTION• Product management• Policy Management• Accounts & intermediaries• Underwriting• Actuarial reports• Billing and collection• Financial Accounting • Reinsurance
CLOUD EXPERTISE
EITG Cloud Expertise• Cloud & Virtualized ecosystem configuration & administration• Amazon EC2 cloud based solution deployments, virtual
environments provisioning & administration
• Most important Windows Azure partner in an Eastern European country with more than 5.000 end-users accessing cloud based web and mobile solutions
• Azure Enterprise Agreement (EA) signed with Microsoft in order to offer customers the benefits of cloud outsourced data centers
• Multiple migration o the cloud projects for start-ups, SMEs and large multinational corporations • The complexity of the migration projects covered a large
array of server clusters:• from several small machines to more than a hundred
machines per application • Migrations covered both open-source and proprietary
technologies, single cloud and multi-cloud setups, single-region and multi-region setups
Cloud Decision & Implementation ProcessPH
ASE
CONS
IDER
ATIO
NSEI
TG SE
RVIC
ES
InitialThoughts
Evaluating
OptionsCommitte
dImplemen
tOptimise Run
Platform Vendors
Scalability
T.C.O./R.O.I.
Timescale
Considerations
Business case
Why Cloud?
Is it right for me?
Is it secure?
Business impact?
Typical cost?
Time to implement?
Application review
Performance analysis
Further Cloud enabled
opportunities
Benefits realisation
Scale
Continuous improvement
Cost management
Vendor management
Service delivery
Independent advice
Analysis & Design
Technical Services
Support Services
Business case approved
Cloud platform selected
Contract process
Implementation planning
Project planning
Greenfield or Migrate
Business Impact
Risk Analysis
Architecture
Testing
Rollout
• Cloud Computing for Insurance, Inside the drive toward new business model, IBM
• How cloud computing will transform insurance – Using cloud to help drive future high performance in the insurance industry, Accenture
• Sizing the cloud, Forrester Research• The Future of Cloud Computing, Expert Group Report, European
Commission• Gartner, “A Quick Look at the cloud in the insurance industry”• Cloud Computing in the Property & Casualty Insurance Industry, Capgemini
Resources