Insurers can’t postpone migration to the cloud, not if they want to thrive in a competitive market. Customer expectations continue to evolve, and it is apparent that only the insurers that can meet customer needs can keep their market share
What is Guidewire InsuranceSuite?
Guidewire InsuranceSuite is an industry-leading insurance software that helps in improving operational efficiency, faster-to-market products, and enhanced customer experience.
Insurance companies have made some progress in moving off legacy applications but are challenged by monolithic systems, impacting their agility and profitability. Many companies are yet to take advantage of the cloud. But, the realization across the industry is that moving to the cloud can garner greater benefits, such as cost reduction, agility, and scalability. The COVID-19 pandemic has been a wake-up call to insurance providers as they faced a decline in revenues and an increase in claims payouts, even as they moved to a remote working model. Meeting customer needs while being homebound also became a challenge. Moving to the cloud infrastructure was a natural reaction to overcoming these hurdles.
Cloud infrastructure offers greater profitability and significant cost savings. It also opens the door to innovation and new product offerings to meet the evolving customer expectations. But to leverage cloud infrastructure for maximum results, the core insurance platform needs to be migrated to the cloud. Over 400 P&C insurance providers have adopted Guidewire InsuranSuite to support their business processes as it supports the end-to-end value chain – policy management, billing, claims, etc. Using the on-premise model of Guidewire has been replaced with Guidewire cloud to simplify the process, reduce costs, and accelerate innovation. However, insurers have a few challenges to overcome
Challenges faced by insurers
Pressure to increase top-line revenue: The economic downturn in the wake of the pandemic made an impact on specific segments and lines of business, adding pressure to increase revenue.
Sales and service model disruption: With the arrival of the new digital channels in the market, and some insurers working directly with the customers, there has been a disruption in the sales and service model that included third parties.
Higher liability and threat to the bottom line: Interest rates dipped and impacted the insurers’ investment income. Mre new regulations were put in place that increased liability and reduced margins.
The need to overcome these challenges and recover from the downturn led to finding new pockets of growth. Guidewire cloud infrastructure is perfectly placed to transform insurers’ standing and achieve business benefits.
Benefits of Guidewire cloud infrastructure
Migrating to Guidewire cloud can help focus on core competencies and access other capabilities through Software-as-a-Service. Guidewire’s SaaS offerings include:
- Simplified processes for software upgrades
- Agility and accelerated time-to-value
- Enhanced user experience
- Empowers insurers to broaden the ecosystem of value-add applications
Agility to accelerate time-to-value
Insurers have access to automatically delivered upgrades through the cloud that can replace costly in-house upgrades. The pre-built online capabilities are made available for insurers to use. Simple claims can be automated, enabling employees to provide better customer support with a clear view of their claims’ status. It also allows the in-house teams to focus on business growth and improving customer experience.
Guidewire cloud infrastructure helps innovation and create new products and services, add new features, and review and refine processes and policies without involving IT departments. The cloud model also helps insurers discover new partners and use APIs to integrate seamlessly with third-party solutions. Guidewire’s integration layer enables smooth updates to the core systems and integrations, builds new integrations, and moves between third-party vendors.
Guidewire cloud infrastructure to drive business value
Guidewire’s in-built services enable provisioning, authentication, and services along with other third parties. Provisioning can be driven to 15 minutes instead of earlier 20 days. More can be achieved by automating all connections between various services across the platform.
Guidewire also provides autoscaling across multiple services, making it easier for insurers to add innovations for faster-to-market. It also helps with scaling up with the needs of policyholders in real-time. Yet another advantage for existing customers is the data migration services with CloudDirect to help streamline the upgrading process to the Guidewire cloud.
Additionally, a centralized dashboard makes it easy to access all cloud applications. The Guidewire cloud console also acts as a control panel for your cloud services with automatic upgrades every six weeks with no downtime or disruptions for customers’ business applications. The self-service tools include provisioning, deployment, logging, etc.
Migrating existing Guidewire applications to the cloud is the first step to increasing business value. Staying with on-premise services will slow down the agility and scalability, and achieving cost reduction will be a challenge. Using Guidewire cloud infrastructure can help insurance organizations to become data-driven and take a cohesive approach to drive the business. It is an end-to-end solution for the insurance industry offering streamlined business growth.
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