Common Problems and Solutions to the Adoption of SaaS in Insurance
Fear of change can create barriers, but progress is always possible
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In this article, Darren Dempsey, Munich Re Automation Solutions Chief Cloud Architect, describes the common reservations and barriers to software-as-a-service (SaaS) adoption among insurers and how they can be overcome.
Many times, we hear concerns about data security, privacy, and compliance, and these are natural concerns. Any organization would typically thoroughly address these concerns as part of the due diligence process before selecting a new partner or vendor.
Indeed, the due diligence process for selling SAS is comprehensive. Vendors are typically subjected to a barrage of questions, required to complete I.T. security risk reviews, and expected to provide verifiable evidence of their security and data protection compliance.
Having done this with hundreds of clients, vendors will have experienced that many of the questions and concerns from insurers are the same.
Internal barriers
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Technical barriers
Data and vendor lock in
Some concerns insurance companies may have before adopting SaaS are related to the risk of vendor lock-in.
It's crucial to understand that the risk of vendor lock-in is not exclusive to SaaS adoption. However, SaaS providers are obligated to provide a clear path for the insurance company to retrieve their data from the service.
These data concerns would be typical: Is my data secure? Where is it stored? Is there a chance I lose it? Will I get locked into this vendor?
Fear of change
A lot of it can be fear of change, too. Your applications work. They're on-premise. You've got a great local team. Check, check, check.
Why change?
There are many benefits – see our article outlining these benefits in detail here.
The cost, increased security, increased access to the latest updates, and faster time to market are essential.
However, the only actual barrier to adopting SaaS is an organizational one.
The decision to adopt SaaS rests with the information security officer of the insurance company. Their choice can significantly influence the organization's technological direction.
It's important to acknowledge that concerns about SaaS adoption are universal. Having worked with numerous companies worldwide, I've found that these concerns are often shared, regardless of the company's size or location.
An experienced, confident, successful vendor will be able to show that they are a partner your insurance business can trust.