Having an established history and tradition is a point of pride for many insurance providers. Serving multiple generations is a firm testament to the stability of their businesses. However, it’s also an indicator that they’ve been quick to adopt modern technologies that address the specific needs of their current market. The cloud has been a major game-changer in that respect
Cloud computing, simply put, refers to delivering computing services over the internet. It’s an innovation that many forward-looking insurance companies depend on to make their processes more efficient and to deliver quality services to their clients. While moving from traditional computing systems to cloud computing is often a significant, multi-year undertaking, it’s important to acknowledge that shifting to a digital insurance platform is crucial to ensuring the survival of companies that cater to the needs of digital natives. To enjoy the full benefits of this technology, though, it’s not enough y to simply use cloud computing. Your business must also adopt a cloud-first strategy wherein its core systems are in the cloud and must prioritize cloud-based solutions over others.
One of the primary benefits of adopting a cloud-first strategy is that it can significantly reduce your average claims processing times. This is one of the key metrics for determining the quality of service within the insurance industry. Here are some steps you can take to accelerate your insurance business in the cloud:
Move core systems to the cloud
The first step in cutting down the time it takes to process and respond to claims is moving your company’s core systems online. This is a demanding, resource-intensive task, so understandably, many insurance providers are reluctant to take the leap. Instead of moving their core claims processing systems to the cloud from the start, these companies may start with peripheral functionalities, like managing memberships and products, so that they can mitigate the cost of the whole process. While convenient, this approach will not have a significant impact on making claim processing quicker and easier for clients. To reduce claims times, you have to move your processing online. Doing so will give you the capability to process claims as soon as they come in, cutting down the time you’ll need to provide your primary service to clients.
Strengthen data security measures while migrating data
Moving insurance information from an on-prem database to the cloud is a precarious task that must be undertaken with extreme care. Migrating personal health and insurance information to the cloud is a process that’s fraught with security risks: many organizations fear being more exposed to cyberattacks and legal liabilities. To prevent this, you can bolster your security systems in order to protect clients’ data. Data migration is an essential step, but it should be discussed properly with risk and security managers. There are steps you can take to mitigate these risks, such as making sure there’s a highly secure data infrastructure for storing client data, addressing all possible security issues, and getting all the necessary compliance certificates and training before starting the migration process.
Process claims in the cloud as they come
Once your core systems and client data are online, you’ll be able to accept and process claims as soon as they come in. Insurance providers that still depend on premises-based systems and solutions are often incapable of scaling their operations should a large batch of claims arrive, and this can cause delays in claims processing. Companies that rely on cloud-based claims processing systems, on the other hand, have the resources to scale up their operations according to their needs. These companies are no longer tied to batch processing systems; they can start processing each individual claim as soon as it has been filed.
Use cloud-based calculators to determine claims costs
Another slow step in claims processing is computing just how much the insurance company should compensate individual clients. There are, after all, so many factors that you need to take into consideration when crunching these numbers. This is no longer a problem for providers that leverage cloud-based claims processing systems that have been equipped with a claims calculator module. You can simply input the formula or key considerations that you use to calculate compensation for particular cases or insurance products. The claims calculator can then take care of computing how much these should cost relative to more conventional cases, speeding up claims processing. The claims processing system can also be programmed to forward more complicated cases to the insurance company’s staff members for closer scrutiny.
The many benefits of leveraging cloud-based systems to deliver quality insurance services
Cutting the time it takes to process claims is just one of the numerous benefits of relying on cloud services. You can also use cloud computing to improve your products, respond to the needs of the market in a timely manner, position your business to benefit from future trends, and even set up a safe disaster recovery program that will allow you to remain operational in the face of common calamities. The agility afforded by the cloud won’t just keep you afloat, it will enable you to pivot quickly to new needs and stay ahead of change.