An increasing number of property and casualty insurance firms have switched to a “Software as a Service” (SaaS) management platform and other SaaS products for their core systems.
Strategy Meets Action research showed that these companies transitioned to cloud computing for their core systems since 2015. Their move has been considered to be a business strategy to outsmart competitors, as the technology for the cloud continues to become more updated.
Safe & Secure
Security issues have mainly caused P&C insurers to think twice about using SaaS for their core systems, but cloud providers have constantly worked to address this concern by investing in security features. This has been evident in recent years, and as a result, more companies have finally realized that going digital is the best way.
Aside from security, SaaS has become more popular for the P&C industry due to its ability to hasten production without sacrificing efficiency. Since on-premise systems require significant costs and months of implementation, insurers are finding it easier to use SaaS in launching new products and save costs at the same time.
As global spending on IT security would increase 7% to $86.4 billion in 2017, the adoption of SaaS as a safer solution will partly lead to slowing growth in hardware support services, according to Gartner. The research firm’s forecast showed that this trend within the industry somehow reflects business leaders’ acknowledgment of investing in information security products.
For P&C firms, using SaaS for their core systems has become an attractive solution because of service providers’ efforts to make it more secure and reliable.
SaaS can be a good way to replace on-premise systems whether or not you engage in the P&C business. As the digital era shows no signs of a slowdown anytime soon, it’s best to consider how using SaaS can leverage your business to greater heights.