Cloud offers ‘low risk’ solution for insurers

Cloud computing is offering the insurance industry a low risk way to deploy new solutions which will increase business value, according to Cisco’s Jeff Tumpowsky.

A senior advisor at the networking firm, Tumpowsky said that the insurance industry, and other financial services institutions, were struggling to find a business structure that provided the desired flexibility and market savings necessary to provide excellent customer service. 

He claimed that cloud computing was helping address this by changing the way organisations store and access applications and data. He added that this delivery method is allowing firms to increase capacity or add capabilities quickly without having to invest in new infrastructure or personnel.

“In order to achieve the business flexibility that insurers’ desire, investing in cloud computing may be the easiest solution. Through a traditional non-cloud-based transition, insurers are likely to spend millions of dollars upfront on on-premise hardware for the new infrastructure. Then, they must work around application development, which can turn into a lengthy customisation and implementation process.”

He added: “Cloud computing in the insurance industry is increasingly showing signs of being a necessity. One of the greatest benefits that internal cloud-based computing provides insurers is the ability to create a virtual server easily and deploy business-user-configurable cloud software solutions quickly. As a result, insurers can launch new products and services faster than ever before.”