INTELLIGENT BRANDS // Cloud
SaaS set to transform
the insurance industry
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S
Future-proof
oftware as a Service (SaaS) and
the cloud have become essential
components to grow a business in
the digital environment. Patrick Ashton,
Managing Executive of Cirrus, a subsidiary of
the SilverBridge Group, believes that insurers
across Africa will significantly benefit from
this shift in approach.
Given that software, services, and
applications are increasingly virtualised,
organisations are realising how
advantageous this is to keep their focus on
core business functions.
“Many assume the adoption of SaaS to
be all about technology. And while there
is some truth to it, the broader impact on
the enterprise cannot be ignored. SaaS has
the power to fundamentally change how
an insurer not only develops solutions but
also services customers in a more connected
environment,” says Ashton.
To remain competitive in an increasingly
complex business environment, with a more
demanding customer base, insurers need to
ensure they can deliver innovative solutions
to market rapidly and adapt those offerings
as feedback is received. SaaS is one of the
mechanisms to achieve this.
Instead of businesses waiting for ICT to
provide infrastructure or software solutions
to support the new initiatives, businesses can
now use tailored SaaS offerings.
Data-driven
Even though insurance (and other financial
services industries) has always been data-
driven, SaaS takes this to a more advanced
level. Business intelligence and real time
analytical tools are no longer the exclusive
domain of the largest insurers with the
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INTELLIGENTCIO
Patrick Ashton, Managing Executive of Cirrus
biggest budgets. Instead, there has been a
democratisation of solutions, thanks in part
to the popularity of cloud-based offerings.
“Insurers no longer have to spend vast
amounts of money to better understand the
data they have. You just need to consider
what insurtechs are doing to innovate and
analyse the information. The incumbents are
learning from this. And while the migration
from a legacy approach to a more SaaS-
driven one is not without its challenges, it is an
inevitability for the digital era,” says Ashton.
While SaaS provides for the development
of more sophisticated or differentiated
insurance solutions, it does not mean that
only the most connected customers will
benefit. Instead, products and services are
delivered which meet a broader cross-
section of market requirements or can take
advantage of niche market opportunities.
Ashton says, “In Africa, there is a significant
disparity between the banked and the
unbanked. The same holds true for those who
are insured and those who are not. Being
more open to innovations brought about by
SaaS and the cloud, also results in a willingness
to experiment with different payment models
given the challenges of collected stop or debit
order on the continent.”
From data management to reporting
and marketing, SaaS is already starting to
transform insurance globally and Africa is
sure to follow. The burning question though
is how quickly will historic dependence
on in-house ICT teams be replaced by
business-driven solutions enabled by SaaS
sourced product and service offerings?
Even though cost-effectiveness and ease of
implementation are used as departure points
to begin implementation, the benefits quickly
scale as the market demands can be serviced
more effectively in much shorter time frames.
“The competitive landscape sees insurers
looking at ways to try and future-proof their
business. SaaS is one of the elements in
this as it provides the flexibility needed to
become more productive and offer tailored
services in ways previously unimaginable,”
concludes Ashton. n
SAAS HAS THE
POWER TO
FUNDAMENTALLY
CHANGE HOW
AN INSURER NOT
ONLY DEVELOPS
SOLUTIONS BUT
ALSO SERVICES
CUSTOMERS IN A
MORE CONNECTED
ENVIRONMENT.
www.intelligentcio.com