Why the insurance industry is going to have to change to keep up with tech giants
The insurance industry has been struggling to keep pace with a changing technology landscape.
The number of companies offering health insurance plans has grown by about 60% since 2009, according to the Kaiser Family Foundation, a research group based in the San Francisco Bay Area.
This has forced insurers to develop a whole new way of offering coverage.
The new offerings include mobile apps and cloud-based tools to help manage the insurance company’s operations.
And they are all designed to keep the business of insurance running.
“It’s very challenging for insurance companies to keep a business going,” said Ben Leventhal, chief executive officer of the National Association of Insurance Commissioners.
Leventhals company, the National Federation of Insurance Agencies, said insurers are increasingly reliant on the cloud to manage their operations.
The cloud, however, has a few serious flaws.
One is that it can be difficult to use, because it is typically located in a separate location.
And it can also be hard to understand.
The other major flaw is that companies can lose their data in the cloud and not know how to retrieve it, said Brian A. Cogan, an associate professor of insurance administration at George Mason University.
Insurance companies have tried to solve these problems by using cloud-computing technologies such as Microsoft Azure, which offers services that include file storage and analytics, and Google Cloud Platform, which is designed to be able to run apps on the web.
In addition, some companies have begun to adopt the technology to manage medical records, which would make them much more secure, said Eric Guggenheim, senior vice president at research firm Avalere Health.
In the future, insurers will be able buy and sell health plans in their own cloud, and they will be better able to make sure the health insurance is being offered in a timely fashion, he said.
The companies that are moving into cloud-hosted offerings have not done so for several years now, and the insurers are having to adjust their business models to deal with this new reality, he added.
“Insurers are seeing that the cloud has been a big part of their business for a while now,” he said, “so they’re really looking at cloud as the next step.”
The new models can also result in lower costs for insurers, because they can use more data to help improve the business model.
In some cases, this has resulted in lower rates for consumers, who have more to lose by switching to a cloud-managed plan.
Insurance industry experts say that as more companies adopt cloud-centric strategies, insurers can look at their business model as a more sustainable one.
“You have to think about the economics of your business,” said Mark J. Foti, an assistant professor of economics at George Washington University.
“I think it will be good for your business if you can have that flexibility.”
The trend towards cloud-backed plans has also had some positive effects for insurers.
Insurance agencies are seeing the benefits of cloud-focused offerings, said Cogan.
“If you look at the impact on premiums, cloud is not necessarily going to be a negative,” he added, “but if you are doing the risk management on the individual side, you’re probably not going to see the big benefits.”
One of the main reasons insurers are moving towards cloud is to increase efficiency, said Gugglenson.
“We’re trying to get a business to operate more efficiently,” he explained.
“This is the next phase of the business that’s going to make the big bucks.”