How Can Cloud Technology Help Insurance Companies to Innovate?

Like other sectors, insurance companies can benefit from leveraging cloud-managed networks services. Some of the common advantages found in Cloud Computing include lower capital costs (Capital Expense or Capex), faster deployment, and lower IT operating costs than using your infrastructure.

All these advantages are certainly enough to encourage companies to adopt cloud technology services. However, Cloud services can also provide other benefits, namely making it easier for insurance companies to create innovations to be more competitive and provide better service to their customers.

The latest digital technologies such as AI (Artificial Intelligence), ML (Machine Learning), IoT (Internet of Things), and Big Data Analytics have opened new opportunities for insurance companies.

Previously, this latest technology required a large initial investment. However, thanks to cloud technology services, insurance companies can explore and use the latest innovations at affordable costs.

Claim Processing

Fraud claim detection is also something that can be done more effectively by utilizing Machine Learning (ML) techniques. These false claims can make up 10% of all claims in an insurance company. The ML algorithm can flag suspicious claims that need further investigation.

Compared to traditional predictive models, detection using ML is faster and more accurate, because it can take advantage of unstructured data. More accurate counterfeit claims prevention can reduce company losses, and faster processing can improve customer satisfaction.

Risk Assessment

Insurance companies can also use ML techniques to assess customer risk. The company can estimate losses and determine a suitable premium. This more accurate risk assessment can, in turn, increase company profits.

Retaining Customers

With Big Data Analytics insurance companies can formulate better strategies in retaining customers. For example, companies can find products suitable for specific regions and demographics through an ML approach that can identify relationships, trends, and patterns from the available data. Analysis of the dataset of customers can also determine the best distribution channel to increase sales productivity.

Cloud managed sdn networks services enable enterprises to quickly access powerful computing devices without going through a complicated procurement process. Insurance companies no longer have to buy expensive servers and storage, but can implement innovative solutions by utilizing cloud services.