October - 2016 - issue > CEO Insights

Cloud Technology Enables Small Insurance Carriers To Compete With The Larger Carriers

Anil Annadata
Founder & CEO-CodeObjects, Inc
Thursday, October 13, 2016
Anil Annadata
In a traditional insurance systems project, companies spent significant time and resources acquiring software and hardware, installing the system, customizing the platform to fit their needs, building interfaces with third party providers, and testing and launching the system. Then, they needed to continually apply resources of staff, time, and money to maintain and upgrade the platform.

In contrast, cloud-based insurance business process management built on Software as a Service (SaaS) frees insurers from these tasks. SaaS solutions are fully configured and pre-integrated-ready to use in a fraction of the time of traditional installation projects and with a pay-as-you-go pricing model that any company can afford. These solutions are not stripped-down offerings: today's SaaS insurance systems go beyond the core of policy, billing, rating and claims to deliver all the ancillary functions required for true end-to-end insurance processing. This allows small and mid-sized insurers in particular to level the playing field with larger carriers, to respond quickly and nimbly in a rapidly evolving insurance marketplace, and to gain competitive advantage over their peers.

The advantages of cloud-based insurance business process management solutions fall into five key areas:

1. Low-Risk of Deployment, High Speed-to-Market

Traditionally, deploying insurance systems has been a major undertaking, requiring an army of internal staff and external consultants and many months or even years of customization, integrating, and installation of the platform. Long project times and significant customization significantly increases risk, and the annals of insurance project history are filled with stories of failed implementations.

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