Insurers' mood for the cloud is increasing - it-daily.net

Insurers’ mood for the cloud is increasing

A good 60 percent of German insurance companies use a cloud. The biggest challenges are regulation and compliance.

More and more insurance companies in Germany are making the move to the cloud. As the study “Cloud Computing in the Insurance Industry 2022” by the auditing and consulting firm PricewaterhouseCoopers (PwC) shows, 58 percent of the 90 IT decision-makers surveyed in the industry expect cloud use by insurers to increase over the next two years , especially in larger institutes. Currently, 61 percent of German insurers rely on cloud solutions. A further 31 percent want to relocate their IT architecture to cloud computing environments in the coming year.

According to those surveyed, the relevance of the technology for both the industry (58 percent) and their own insurance companies (43 percent) will increase over the next five years. IT managers currently see unclear regulatory requirements (47 percent) and the risk of compliance violations (45 percent) as the greatest challenges for moving to the cloud.

“When using the cloud, particular attention should be paid to compliance with regulatory requirements, since the security of the data in the cloud and the responsibility for compliance requirements remain with the top management of the insurance company,” says Dirk Klevenhaus, partner at PwC Germany.

Tendency towards the private cloud

Almost half of the insurers (47 percent) use a private cloud via the company’s own server, followed by hybrid (27 percent) and external public (24 percent) cloud solutions. Software as a service models (SaaS) are used most frequently (42 percent).

So far, insurers have mainly used cloud solutions in policy management (55 percent), in customer relationship management (CRM) and in claims management (42 percent each). From the point of view of those surveyed, switching to the cloud is particularly worthwhile for mobile solutions (42 percent), CRM (40 percent) and Office applications (38 percent).

According to the managers surveyed, the main advantages of a cloud include greater flexibility (78 percent) and improved security, availability and additional support functions (76 percent).

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Compliance and cloud strategy in focus

The topic of compliance is also moving into focus: 65 percent have already created an overview of all regulatory requirements. However, only 40 percent have stipulated mandatory contractual clauses for cloud services – for example for agreements on the location of data processing (91 percent) and the right of the insurance company to check cloud service providers (82 percent).

“Particularly in the area of ​​public cloud, there is still a lot of catching up to do in the insurance industry when it comes to the strategic embedding of cloud computing services. Many insurers have not strategically considered the issue, or have only partially considered it,” says Sven Kilz, a partner at PwC.

Only 64 percent of insurers have defined processes for monitoring and controlling cloud risks. 23 percent said their cloud providers are not fully certified.

Further information and the study “Cloud Computing in the Insurance Industry 2022” are available here.

www.pwc.com

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