The rise of the cloud - FIS
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The rise of
the cloud
PRODUCED BY
Rise of the cloud? Rise of the cloud?
SKY’S THE LIMIT:
come out with a range of possibilities. of their existing applications as they start-up companies starting to rely
One solution was to purchase more can as quickly as possible. For insurers, more on the cloud.”
hardware, but the obvious winner the question isn’t ‘if’ anymore – it’s how
INSURERS OPEN UP TO
was to move to the public cloud. The fast they can move and what are they Best of both worlds
beauty is you can tap that capacity going to move first? While we recognise One possible means of navigating the
when you need it and switch it off when that there is no one size fits all, we are data-protection and data-sovereignty
CLOUD COMPUTING
you’ve finished the calculation, so it’s a seeing a few major patterns emerging challenges is a hybrid cloud solution.
lot cheaper.” amongst our customers.” Insurers that want the ability to tap into
Cloud computing also provides the “Cloud adoption for compute the scalability and cost efficiencies of
most up-to-date hardware and delivers continues to be strong in the insurance a SaaS model can develop dedicated
IT resources to users as services over industry,” says Jonathan Silverman, resources alongside this in which to
In a bid for scale, more insurers are transferring their reporting a network. “We always work with the a director in Microsoft’s worldwide place secure customer data.
latest versions, only now we don’t need commercial industry sector. “The insurance industry is very
capabilities to the cloud, creating possibilities for smarter to exchange servers and hard drives “Customers are recognising the value conservative when it comes to modern
operational models all the time,” explains Werner Matula, of having access to unlimited compute technology,” explains VIG’s Matula.
head of VIG Actuarial Services. “The capacity for risk modeling. Overall “The cloud was pretty new to us and
cloud provider will ensure they have we’ve seen triple-digit growth year the discussions went deep, from a
the latest hardware. And the software over year in cloud adoption among data security and regulatory and
provider takes care of ensuring the insurers, who are making substantial legal point of view. At the end of the
s a data-rich industry, Craig Beattie, a senior analyst with software is up to date, and makes sure cost savings with infrastructure related day it was about this specific pocket
the ability of insurers to Celent’s insurance practice. “From a we receive regular updates and that to the risk-modeling workload.” of risk modelling. We do not work with
extract value from their modelling perspective the simple fact everything is optimised.” personalised data and we don’t move
data using advanced is that it’s an opportunity to shift things For VIG, a decentralised multi-line A question of trust any of our clients’ data to the cloud –
analytics has become critical to out into the cloud, particularly for insurance group with a strong Insurers’ main concern historically we just move numbers that would have
staying ahead of competitors, as well financial modelling.” presence in central and eastern has centred around data security no meaning to anyone else.”
as a regulatory imperative. These But if you look at the insurance Europe, the cloud also offers the and residency (with laws in many Such an approach keeps confidential
pressures have increased the need industry globally, the majority of customer opportunity for some of the group’s jurisdictions surrounding whether private data encrypted and internal
for insurers to carry out stochastic and policy data will be on-premise.” smaller players to benefit from data can be moved across borders). to the organisation, while allowing
capital modelling, requiring them to analytics and software usually only There has been a particular fear the insurer to tap into the scalability
perform more model runs of increased Bigger, faster, cheaper available to tier one and tier two over “the security of the ever-growing and computing capacity of the cloud.
complexity and size, stretching in-house Among the advantages offered by insurers. “Many operations can volumes of data that insurers As AIA’s Yuan explains: “We needed
IT resources to the limit. cloud computing are scale, efficiency simply access this central or umbrella hold in cloud-based storage to get approval from all our country
The computing capacity now and cost-effectiveness. From an platform, which is not a possibility for systems”, according to one report regulators to reassure them [that] any
required by many insurance actuarial modelling perspective, the in-house solutions,” Matula explains. last year by PwC. data we were putting into the cloud
companies is a significant factor that ability to pay-per-use and scale up “It’s a service we can provide to the This is a concern that is not did not have PII [personal identifiable
has led pan-Asian life insurer AIA when needed is a significant benefit. whole group: the standard is the same particularly well founded, according information].”
and central European carrier Vienna The, adapt the environment to from everywhere and it’s easy to to Celent’s Beattie. “Today if you The benefits witnessed by those
Insurance Group (VIG) to tap the evolving business needs model, also handle and maintain,” he continues. talk to people in western Europe and insurers that have taken a hybrid
capabilities of the cloud. While these means that the insurer is not paying “For our smaller operations especially, North America, where they’re most approach to the cloud have
insurers are most definitely first movers, for infrastructure to sit around while this is a huge advantage because it familiar with cloud and IT outsourcing, increased the level of comfort in the
they are not alone. stochastic calculations are not being might not be affordable otherwise.” cloud hosting providers are more opportunities it presents. As cloud
While heavily regulated industries carried out. A number of insurers are already likely to have better security than technologies mature, some insurers
like insurance and banking have These economies of scale and using public clouds (services offered [insurance companies] do in their are experimenting with cloud to drive
been more hesitant to expand their flexible sourcing were key factors by Amazon, Microsoft and Salesforce, internal data centres. revenue, improve collaboration, gain
cloud initiatives than less regulated that drove AIA’s decision to move among others) for their non-core office Beattle continues “we’re certainly customer insight and reduce time to
industries such as retail, media and its actuarial modelling functions and support functions such as email, seeing some of these insurtech market for products.
manufacturing, at least 16 per cent of into the cloud, explains Rick Yuan, back office accounting and customer
insurers polled by analyst, Celent say head of actuarial modelling and relationship management. However,
software as a service (SaaS) will be a
big part of their core systems strategy
transformation at AIA Group. “In the
past we only needed to project a single
until recently, most were reluctant to
consider the cloud for mission-critical
The benefits witnessed by
moving forward. A further 58 per cent best estimate scenario based on a infrastructure. those insurers that have
acknowledge that it might be useful in
the future.
number of different assumptions, such
as mortality rates, persistency pattern,
According to David Elliott,
Architecture Manager for Financial
taken a hybrid approach to
“Today most CIOs and executive expense levels, etc. Services at Amazon Web Services, the the cloud have increased
boards have moved beyond the “Recently it came to a need to report cloud has become “the new normal,
knee-jerk fears over security, and the economic capital,” he continues. as companies of every size are now the level of comfort in the
challenges surrounding cloud adoption
have become more practical,” explains
“Basically, we needed to run [a]
projection tens of thousands of times to
deploying new applications to it by
default, and looking to migrate as many
opportunities it presentsRise of the cloud?
Cloud computing CLOUD TECHNOLOGY TECHNIQUES CLOUD BENEFITS
Key facts
Cloud computing services can be: Insurers are taking
advantage of the cloud to:
Gain access to new markets
Hybrid Public and new customers, increase
companies can run a third-party customer loyalty and retention
MATURITY OF CLOUD ADOPTION Private mission-critical
workloads or sensitive
provider delivers and enable new business
delivered from the cloud service models and applications
a company’s applications on the over the internet,
data centre to private cloud, while selling it on
More than 12-24 6-12 Will go to market in using the public cloud demand, by the
internal users
24 months ago months ago months ago the next 6 months for busy workloads that minute or by the
must scale on demand hour
Shift transactional
workloads to lower-cost
and higher-efficiency
service providers
North America
70% 15% 13% 2%
Capture real-time
intelligence about an
accident situation nd a
INVESTMENT IN, AND IMPACT OF, CLOUD better understanding of the
Cloud
Financial and professional services due to catch up risks, e.g. telemetrics.
Latin America
65% 13% 22%
Maturity
Level of investment in clouds (/S)
Place email and whiteboard
Impact of cloud on competitive landscape (/S) applications in the cloud, allowing
Europe, the by Region sales agents, employees, field
representatives and developers to
collaborate in real time, regardless
(n=41)
Middle East Tra
and Africa
59% 24% 17% nsp of the device they use
li or
ta 4.19 t&
Re lo
3.28
gi
Provide and scale computing
sti
c
resources to meet periodic
APAC 4.06 demand for actuarial and
59% 24% 17% 3.59
financial workloads
Source: Celent Vendor Cloud Survey, 2015
Financial & p
Support agent management,
BIG NUMBERS 3.93 3.23 including sales document
management and
application submission
$
187.3 $
204 M ed
ia
r
3.40
ofess
3.70
ion
a
Support critical functions such
l se
billion billion
as billing and underwriting
rv
ic
es
3.23
3.43
Ma ls
ica
nuf
acturi eut
ng & pharmac
Total expected IT Total expected spend on global
insurance spend in 2016 cloud services in 2016 Preserve data for audits
3.53 TOTAL 3.69
Source: Gartner, Forecast 2013-2019 Source: Workplace 2020, Google Source: Cloud Computing for Insurance Report, IBMAbout FIS’ Prophet solution FIS’ Prophet solution is a leading enterprise-wide actuarial modeling system that helps insurance and financial services companies meet reporting responsibilities, improve risk management, and develop more profitable products faster. Prophet uses customisable actuarial libraries for all major product types, including regional variations. It provides the transparency, performance and control required by today’s actuaries and risk managers through integrated financial modeling and data management capabilities. Prophet is used by more than 10,000 users at over 850 customer sites in over 65 countries. For more information, please contact insurance.info@fisglobal.com
You can also read
