How to create cloud-based insurance software: A concise guide 

The contemporary insurance sector is a highly competitive business niche. Hundreds of players in this field go to great lengths to outstrip their rivals, reach as many consumers of their services as possible, and provide a top-notch customer experience to their clientele. In our IT-driven world, this is impossible without harnessing a full-scale digital transformation of insurance workflows.  

Yet, since all insurance companies with big-time aspirations utilize IT innovations, you should leverage the most cutting-edge technologies to stand out among the rest. So, if you want to win in this success race, you have to use the power of artificial intelligence, optimize your insurtech environment for mobile, and hydrate the cloud.  

This article will explore the assets of cloud software for insurance, outline the most popular use cases of cloud-based platforms in the realm, enumerate obstacles the development of cloud-based insurance software is likely to face, and suggest tips on how to build cloud insurance software of the topmost quality.  

What is a cloud-based insurance software?

Cloud-based insurance software refers to systems, applications, and tools used by insurance companies to manage their business and customer-related processes in the cloud. These applications are hosted on remote servers, allowing users to access them via the Internet.

Key features of cloud-based insurance software include the following:

• Accessibility – users can access software from anywhere, whenever they need it
• Scalability – insurers can scale the usage of their software if their needs grow
• Data security – cloud providers offer robust security measures, data backup, and recovery plans
• Integration – cloud solutions can be easily integrated with other tools like CRM systems, claim management software, accounting modules, and more
• Automation – cloud solutions usually offer features that can automate routine tasks

Below is more about the advantages of implementing cloud-based solutions for insurance companies and agencies.

The benefits of cloud computing in the insurance industry 

Cloud technology is one of the disruptive IT advancements penetrating an ever-growing number of domains, experiencing a steep CARG spike of 32% until 2025. The insurance field is following this global trend, with numerous organizations onboarding cloud computing insurance products. What boons can insurance cloud solutions bring to institutions employing them? 

• High flexibility and scalability. Cloud-based insurance agency software can be easily adjusted to the needs of the organizations at any particular moment. In peak seasons, companies can enhance their storage capacity and computational power to meet the demand, whereas in shoulder seasons, the resources can be scaled down to optimize cost. And if you envisage a steady expansion of your business, your cloud insurance software can grow with it unhindered by any hardware constraints. 
• Reduced cost and increased ROI. By hydrating the cloud, you can forget about expenditures for acquiring on-premises servers, data centers, and other big-ticket hardware and its maintenance. Besides, the cloud subscription model grounded on the pay-as-you-go approach allows you to pay only for the facilities and services you use, avoid wastage, and optimize resource allocation, thus increasing your profits. 
• Compliance assurance. When you move your digital shop floor routine to the cloud, you delegate adherence to industry-specific regulations to service providers. Most of them follow GDPR, HIPAA, and other legal norms all insurance agencies must comply with to protect the privacy of customer data they operate. 
• Maximum data security. One more perk cloud providers offer is protecting the data stored in their facilities. Thanks to data encryption (both in transition and at rest), robust access control, regular security audits, and the employment of advanced security protocols, cloud-based insurance solutions are the last word in cyber security. Moreover, service providers have dedicated security teams in place who perform continuous monitoring of the digital perimeter and update protection mechanisms the system relies on. 
• Reliable backup and disaster recovery. You don’t have to worry about the risk of data loss that may result from system failure or physical damage to the equipment. The backup environment hosted by the cloud guarantees regular automated data duplications, which allow companies using cloud solutions for insurance to resume their functioning shortly after the accident, thus minimizing downtime and suffering no disruption of business continuity.  
• Improved personnel efficiency. Since regularly updated mission-critical information stored in the cloud is always available to insurers, they can access it via their professional mobile apps wherever and whenever they need to. Consequently, it will take them seconds to view client data, process documents, collaborate with their colleagues in real-time, and settle all issues in remote mode.  
• Augmented customer experience. Cloud insurance platforms’ ability to draw data from multiple sources (including third-party ones) allows agents to obtain a 360-degree view of customers. With such analytics at their fingertips, insurers can provide their clientele with personalized services and tailored products, anticipating their unique needs. Besides, such platforms’ features usher in broad self-service opportunities, enabling clients to manage their policies and track claims.  

Given such weighty perks, cloud-based solutions find numerous applications in the insurance pipeline.  

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Use cases of cloud-based solutions for insurance

As a vetted IT vendor with in-depth competence in insurance software development, DICEUS understands that the power of the cloud can boost the following aspects of insurance routine.  

Underwriting 

Cloud-based platforms allow agents to evaluate customer demographics and claims history by retrieving all available information about them. Thus, insurers form an accurate and comprehensive picture of their potential clients and make a more informed decision as to insuring their life or property. Plus, the software facilitates and streamlines collaboration between all stakeholders of the underwriting process, boosting efficiency and productivity immensely.  

Claim management 

Claim management is the core pipeline activity the industry relies on. Cloud solutions automate a fair share of the processes it comprises, maintain their transparency, reduce manual work, centralize document handling, and accelerate claim processing. Besides, cloud storage facilities promote secure and efficient claim-related data management, which contributes to workflow optimization and drives customer satisfaction. 

Risk assessment and mitigation 

In case it is reinforced with AI mechanisms, cloud-based insurance software enables access to a vast amount of customer data. When properly analyzed, it offers valuable insights into emerging trends, patterns, and risks, allowing agents to make knowledgeable decisions. Moreover, cloud solutions can respond to shifting risk landscapes (like during a natural disaster) and enable companies to step up their impact assessment routine.  

Real-time reporting 

This functionality ensures that personnel receive vital information as soon as it becomes available to promote prompt decision-making. Being presented in an easy-to-comprehend visual form with trends and patterns singled out to pay attention to, such analytics can be interpreted effortlessly. Having such reports on the table, insurers will swiftly adapt to the changing market situation. 

Customer relationship management 

The value of CRM systems utilized by insurance agencies increases manifold if they are hosted in the cloud. In such a case, they not only become a unified data bank and a single source of truth concerning customer data. In fact, they turn into a powerful tool for enhancing interaction with the clientele, improving retention rates, curtailing customer churn, driving user satisfaction, and boosting business growth.  

Marketing campaigns 

Custom cloud insurance software can be equipped with a range of tools geared toward streamlining campaign management. These tools are highly instrumental in segmenting target audiences based on their preferences and pain points, tailoring services and products to resonate with certain consumer groups, and delivering personalized experiences to each client. As a result, you will be able to reach out to the right audience and tap new markets, thus stepping up conversion rates.  

To make the most of cloud-based insurance software, companies leveraging them should avoid pitfalls they may encounter during the implementation. 

Zooming in on cloud insurance solutions challenges

Having delivered dozens of projects in the niche, we are well aware of typical obstacles insurance agencies face while embracing the cloud.  

• Resistance to change. Very often, both rank-and-file workforce and top managers are reluctant to onboard new technologies. Their fear of the learning curve and job displacement can cause unconscious or deliberate obstruction and friction among personnel engaged in harnessing cloud technology. To combat this, the company’s executives should create a universal buy-in across the organization and pinpoint the benefits the adoption of the technology will yield. 
• Failure to understand the needs. What you should start with is identifying workflows and areas that require bolstering and prioritizing them during the implementation process. When you know the answers to all whys and what-fors, you can align the anticipated improvements with the organization’s business goals to make sure you don’t solve the existing problems by creating new ones. Realizing what to aim for, you should come up with a list of mission-critical features for your future cloud platform. And only if the size of your wallet allows it can you take thought for nice-to-have capabilities. 
• Integration with the existing ecosystem. As a rule, legacy on-premises IT infrastructure an insurance company utilizes in its shop floor routine doesn’t see eye to eye with the cutting-edge know-how the cloud offers. To make sure the two play well with each other and guarantee unhindered data flow between them, you should modify, modernize, or upgrade your current high-tech environment.  
• Handling data migration. This is one of the most serious challenges in implementing cloud solutions in insurance. If not properly planned and executed, the movement of large masses of data can result in inconsistencies, loss, or distortion, hampering the system’s reliability and functionality. That is why you should ensure data security, integrity, and accessibility during and after the migration and opt for a gradual transition with old elements phased out and new ones introduced step by step.  

Now that you know what mistakes to avoid, you can get down to creating cloud-based insurance software.  

How to build cloud-based insurance software: Essential tips

The SDLC in the insurance niche isn’t much different from the development pipeline in other fields. It covers such stages as the discovery phase, establishing solution requirements, identifying the tech stack, determining the team roster, performing UI/UX design, coding, QA and testing, deployment, maintenance, and support. Yet, as our decade-long experience in cloud technology consulting tells us, there are some best practices you should consider while building such products.  

• Set clear goals. You should understand the ultimate business objective of your initiative, such as boosting customer satisfaction or enhancing operational efficiency. This will condition the choice of the roadmap for the process and consequently increase your chances for success. 
• Win over decision-makers. The insurance organization’s managerial staff should understand the benefits and implications of harnessing cloud-based software as well as realize the risks related to it. Armed with such knowledge, they will be better able to act as transformation drivers and select the optimal implementation plan. 
• Train the personnel. Effective use of cloud insurance software is the province of rank-and-file employees, who will eventually utilize the solution in their workflow. That is why they should be taught to acquire adequate skills and a theoretical base for leveraging the solution and maximizing its value for the company. 
• Prioritize data security. Customers entrust to insurance agencies a lot of personal and sensitive data necessary for obtaining their services. Insurers should understand that the customers’ top concern is to keep it safe from compromise. Companies should institute robust security measures (such as access limitations, data encryption, regular risk assessments, and efficient security protocols) to guarantee regulatory compliance and instill trust and confidence across the clientele.  
• Find the right cloud provider. You should conduct thorough niche research and compare the providers’ industry expertise, privacy policies, pricing options, scalability opportunities, and support capabilities. You should cooperate with a company whose pros outweigh the cons and whose service list dovetails into your business and technical requirements.  

Evidently, onboarding a reliable and scalable cloud-based solution that will satisfy your needs is a tough row to hoe for any insurance organization. DICEUS has expertise both in creating insurance software of different kinds and working with cloud-based solutions, which makes it a perfect choice as a consulting partner and software developer in this domain. Contact us to harness the power of the cloud and give your insurance business a compelling efficiency boost.  

Summing it up

Cloud computing is a powerful business tool and competitive differentiator for the insurance sector that improves operational efficiency, guarantees regulatory compliance, provides utmost data security, optimizes expenditures, and drives customer satisfaction. Cloud-based insurance solutions have a wide application range in the insurance pipeline, revolutionizing underwriting, claims processing, risk assessment, marketing efforts, and customer relationship management.  

If you address the challenges of implementing such products and follow the best practices of their creation, you will gain a strong competitive edge by boosting your workflow, improving customer experience, and increasing ROI. 

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