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Software expert Sai Nitisha explains how the cloud is changing the insurance industry for the better
As the industry continues to evolve with further tech advancements, the cloud will become an integral factor in staying competitive in this new insurance landscape
Traditionally known for being cautious, the insurance industry is breaking free and undergoing a revolution powered by cloud technology. The adoption of cloud computing has ushered in a new era of efficiency, innovation, and customer-centricity within the sector, projected to grow by 21 per cent CAGR by 2026.
Sai Nitisha Tadiboina, one of the country’s foremost cloud computing and insurance experts, helped create one of the first amalgamations of AI, cloud computing, and insurance. The real-world implementation of that technology helped the insurance industry to transition into its next phase.
Nitisha is a senior developer at one of US’s largest insurance companies, and advocates for the revolution in the insurance sector by pooling in the ability of cloud computing in the domain. She is also a featured expert on Criya (YC W22), mentor, keynote speaker, and researcher in AI, specifically machine learning. Nitisha’s research focuses on the applications and uses of AI in healthcare and has recently expanded to insurance.
As more insurance companies invest in cloud capabilities, we sit down with industry thought-leader Nitisha to discover how cloud technology is changing the insurance industry for the better.
Streamlining and Improving Efficiency
According to the expert, Nitisha, the cloud has been critical in automating operations and boosting turnaround. Traditionally, insurance companies relied heavily on complex, on-premises IT infrastructures that required significant hardware, software, and maintenance investments .
Cloud computing has shifted the paradigm by offering scalable, pay-as-you-go solutions that eliminate the need for large upfront investments. Research estimates that moving core operations to the cloud can potentially decrease IT spending by upto 40 per cent over five years.
Unlimited by physical infrastructure, insurance firms gain numerous benefits, including:
- Greater storage capacity and easier access to vast amounts of data.
- Faster claims processing, policy underwriting, and risk assessment.
- Better allocation of resources more effectively cost savings.
- Enhanced data analytics for better trend identification and risk prediction.
Scalability, Flexibility, and Innovation
Nitisha also notes that the cloud's scalability and flexibility have helped insurance companies respond to changing market demands, which pre-cloud required substantial time and effort. Now during peak times that see a surge in claims processing demands, firms can quickly adjust their computing power based on immediate needs.
Beyond operational agility, cloud technology allows firms to experiment more easily with new business models, partnerships, and collaborations. This flexibility, in turn, is a catalyst for innovation in the industry, enabling the creation of offerings such as:
- Usage-based insurance models through real-time data, e.g., premiums tailored to an individual's driving habits.
- The integration of third-party services, enabling insurers to offer bundles that enhance customer value.
- Development of parametric insurance products that monitor specific triggers, such as adverse weather conditions or natural disasters, for accurate and prompt payouts to policyholders.
Enhanced Data Security and Compliance
For the insurance industry, customer data security and regulatory compliance are paramount, and contrary to popular belief, cloud computing enhances efforts, Nitisha explains. She reveals how cloud service providers adhere to strict compliance standards and must invest heavily in state-of-the-art security measures and data encryption protocols.
As a result, cloud-based solutions offer multiple layers of security that many insurers find superior data security compared to on-premises systems and reduce the risk of non-compliance issues.
Enhanced Customer Experience
Cloud technology doesn’t just help insurance firms. It also benefits the customers. Nitisha notes the significant shift in how the industry views customers post-pandemic, giving rise to a customer-centric approach via advanced customer relationship management (CRM) systems.
Leveraging these cloud-based platforms, insurers can offer personalised experiences tailored to each customer's preferences. Moreover, this technology allows for better customer data analysis, such as past claims, policy history, and interaction patterns, further developing customised insurance solutions that resonate with individual needs.
Nitisha also points out that cloud-powered chatbots and virtual assistants are also finding their place in customer service strategies. Not only do these AI-driven cloud-based tools provide real-time assistance answering queries 24/7, improving customer satisfaction, but they also free human agents to focus on more complex tasks – the ultimate win-win scenario.
The Future of Cloud-Based Insurance
Like so many other industries, the cloud is transforming the insurance industry, driving positive change across various facets, from streamlining operations and driving innovation to heightened data security and enhancing customer experience.
But, according to the experts like Nitisha, this is just the beginning. As the industry continues to evolve with further tech advancements, the cloud will become an integral factor in staying competitive, adaptable, and customer-focused in this new insurance landscape.
— Shagun Sharma is a business journalist.
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