Asia Pacific (APAC) is one of the fastest-growing economies, driven by the growing digitization in the region. Technology-driven solutions have become an indispensable part of businesses in the developed economies and are now rapidly penetrating emerging markets like APAC, and the insurance industry is no exception. Insurtechs strive to follow innovative approaches to boost customer engagement and overcome the critical challenges in the insurance sector, data management being one of them.
Cloud adoption in APAC insurance companies increased exponentially in the last twelve months, with a 79% adoption rate expected in 2020. In the next six months, companies expect to invest an average of 13% across all cloud technologies and 22% on SaaS products alone.
Cloud computing has become inevitable for industries in this data-driven world. It helps insurers manage and handle four significant areas of their business- back office, front office, investment, and compliance. Besides providing security and flexibility, cloud solutions also offer rapid provisioning, robust data governance facilities, and better asset visibility. Cloud computing can significantly add value to the insurance industry in multiple ways.
Most APAC insurtechs struggle to maintain their operating costs and strive for cost-efficiency after some time. Cloud solutions are one of the best ways to control both external and internal process costs. By creating a secure cloud infrastructure, a lot of money can be saved on data management and establishing an automated workflow. Cloud solutions enable insurance companies to scale their existing IT services, including storage and actuarial computation. It helps insurers minimize the processing time and optimize their service levels with dynamic provisioning. Also, cloud services can be utilized on a pay-per-use model so that insurers need not pay a hefty amount upfront like they need to pay for mobile applications.
The insurance sector in the APAC region is still in the developing phase. Seeing the distribution channel pressures and increased demand for customized products and services, insurtechs need agile deployment methodologies. Cloud computing facilitates insurers to streamline their product development processes and build a robust structure for faster product deployment and improve agility. Leveraging cloud computing, insurers can easily share and access essential data and information within one working environment, saving the time required to adopt and integrate new things into the business workflow.
Increased carbon emission from computers has become a potential risk for the environment. The APAC insurance industry is full of challenges, but the environmental risk is the latest addition to the list. Insurers are now more focused on sustainability, as Environmental, Social and Governance (ESG) compliance in the APAC region has become more prominent. APAC insurtechs ensure the technology they use falls under ESG compliance and doesn’t harm the environment.
Green cloud computing is one of the latest trends that has seeped into the APAC insurance industry. It is one of the best ways for businesses to meet their ESG goals. These advanced solutions are not only known to save energy and reduce carbon dioxide emission but also cut operational costs by reducing extra usage of energy and resources.
While heterogeneity in demographics across the APAC region causes divergence in digital strategies, all businesses aim for one thing: they see digital transformation as an essential approach towards improving revenues and upgrading operations. APAC insurtechs have started to recognize the importance of integrating cloud solutions as not only can it resolve their business process issues but also help companies grab future opportunities. With scalable and robust cloud infrastructure, insurance companies now focus on process automation like claims, billing, and underwriting, improving customer experience, and providing easy access to any data within their working ecosystem.
At PureSoftware, we empower companies from various industry verticals, including insurance, with advanced cloud solutions and help them optimize their internal processes. If you are also looking for cloud solutions and services, talk to our experts and explore how cloud computing can digitally transform your business.