Improving Claims Management Through Cloud Computing

The idea of cloud computing or consuming information technology as a utility resonates a lot like the Application Service Provider (ASP) approach of the 1990’s. This ‘out of the box’ platform gives claim departments the opportunity to transition their business model to address 21st century market trends, and provide their customers speed and results.

What is Cloud Computing?

Cloud computing equips claims managers with hardware and software computing resources that are delivered as a service over a network (typically the Internet). Also known as Software as a service (SaaS) or Business Process Outsourcing (BPO), cloud computing essentially extends the idea centralized computing services first offered in the 1960’s with time-sharing and database storage.

How are claim departments benefiting?

The use of the cloud computing platform gives claim professionals several advantages, including:

The Future of the Cloud

The stage for the explosive growth of cloud computing in the claims management industry is set. Across all industries, cloud computing service revenues grew 15 percent in 2012, reaching $12.5 billion. In the insurance industry alone, cloud is already being widely consumed in non-core applications like bill review, damage estimating, and other peripheral processes.

The second significant driver in cloud growth is speed to market. Customizing, installing and maintaining insurance systems have historically been time-consuming undertakings regardless of whether the systems were installed in-house or deployed at a service bureau. The cloud’s considerable performance benefits even in its early life cycle includes flexibility, agility, scalability, reliability, cost savings, operating system support, and makes less and less financial sense for insurance companies to build core systems capabilities in-house.