Insurance Cloud Migration – The solution to the industry’s challenges


Leverage the power of data and eliminate your challenges

Every year the insurance industry continues to expand all over the world. Here are some facts: in Germany, the Gross Written Premium data was reported at 220 million EURO in 2020. And in the United States alone, there are more than $1 trillion in net insurance premiums written per year. So, the insurance industry is a big money machine with much at stake. That we can be sure of.

But, despite the industry’s seemingly positive outlook, the insurance industry has a lot of challenges. For instance, insurance fraud costs the insurance industry more than $80 billion annually. And that is not the only challenge. Today, many insurance companies face the following challenges and problems:

From the CEO’s business perspective, they have a hard time to:

• Fraud analysis and fraud prediction
• Security and data protection
• Get a 360 view of their customer
• Churn prediction
• Customer rating and personalized offering
• Teams’ knowledge of new technologies (investments needed to upscale)

And from the CTO’s technical perspective, they have problems with:

• Complexity and time (legacy infrastructure)
• Legacy solutions holding historical data
• Performance concerns (data governance, data silos, untapped data due to the limitation of legacy solutions, infrastructure cost, data quality issues)

But unfortunately, the challenges do not stop there. Insurance companies have a wide ecosystem of different core applications to run their business CRM (sales and marketing), call center system, a core system for finances, Life-cycle management, agent and broker management, portfolio management, claims handling system, document management… With no physical products to manufacture and sell, data is arguably one of their most important assets. No matter what kind of data it is – financial data, actuarial data, claims data, risk data, consumer data, producer/wholesaler data – it is the basis for virtually every important decision an insurer

Insurers often deal with large consumer and commercial customer populations, each with specific data types and attributes. And while the industry has made progress over the past decade in capturing and analyzing much of the structured information associated with their products and policyholders, there is even more valuable unstructured and semi-structured information that remains untapped. So, what should the insurance industry do to overcome these challenges and to take advantage of the data they have? The answer lies in what many companies have
already started to do – they turn to data analytics.