Blogs & ArticlesSaaS for Insurance Companies – How SaaS is Transforming the Insurance Industry?

June 6, 2022

SaaS technology has penetrated nearly all industries, across all strata of businesses.  The SaaS industry has increased in size by around 500% over the past seven years. So, what is the role of SaaS in the insurance industry?

Firstly, it enables insurance companies and intermediaries around the world to improve productivity and reduce cost of operations. It also aids them in keeping policyholders happy and satisfied with their service.

Now, how does it work? How exactly can insurance companies benefit from it? Keep reading to find everything you need to know about SaaS for insurance companies.

What is SaaS?

Before going into SaaS for insurance companies, it is important to understand what exactly SaaS is and how it differs from on-premise software. SaaS or Software as a Service is a way of delivering applications over the internet. It works as a service where one can access the application via the internet.

SaaS customers need not buy, install, or update any software or hardware. The applications will run on the SaaS provider’s servers and the provider manages the application in terms of security, availability, and performance. Consequently, it will free the users from complex hardware and software management.

SaaS applications also have different names such as on-demand software, web-based software, and hosted software.

What is the Difference Between SaaS and On-Premise Software?

The main difference between SaaS and on-premise software is that SaaS is hosted and maintained by the provider.  On the other hand, the on-premise software is hosted and maintained by the in-house teams.

For better comparison on whether an insurance company should purchase a SaaS software or build on-premise software, follow this link – Build vs. Buy – Should You Build or Buy Insurance Software?

SaaS in Insurance

Today’s insurance market is highly competitive with customer expectations from companies at an all-time high. So, there is a need for a bridge that connects insurers and policyholders.

As it is evident in the increasingly digital world, software solutions are forming these bridges. For instance, a SaaS-powered chatbot can respond to customer queries saving a lot of time and internal resources for the organization.

By enabling SaaS insurance solutions, insurance companies can focus their time and energy on their core business instead of focusing on IT maintenance. Moreover, insurance companies can use SaaS configurations and templates that have already been set up by the provider. This can simplify the processes and reduce the time taken to execute new ideas.

Benefits of SaaS Insurance Solutions

SaaS insurance solutions come with numerous benefits such as enhanced speed, reduced overall costs, and easier scalability. They are listed below in detail.

1. Enables Innovation

In the ever-evolving insurance market, innovation is a powerful tool that helps insurance companies stay relevant and drive more sales.

By implementing SaaS software solutions, insurance companies can save time and resources on the maintenance and updating of systems. This way, they can strategize and direct their human resource to focus on developing innovative, relevant, and cutting-edge insurance products that exceed customer expectations.

2. Highly Scalable

One of the biggest benefits that come with SaaS is scalability since the software is easy to scale as the business needs change. With SaaS, insurance companies can upscale and add additional storage, servers, licenses, and bandwidth during an ongoing subscription. It is also possible to downscale.

In contrast, on-premise solutions are difficult to scale which requires the company to spend longer time to upscale/downscale and in many cases, expect roadblocks. That’s why SaaS applications are the best way for a growing business where flexibility is non-negotiable.

3. Enhanced Speed

The SaaS providers fully manage the software, insurance companies can focus their time and human resources on product configuration and push production. This way, they can go-to-market faster. Moreover, some SaaS offerings include extensive configuration and automation that will aid in faster product launch and sales.

4. Manage Costs

One of the main reasons for the proliferation of SaaS solutions is that it costs a fairly low budget. Since the insurance company will be renting the services, they need not spend a large amount of money up-front.

On the other hand, on-premise solutions are expensive to build, and in-house solutions require their own IT infrastructure, and staff for software maintenance and troubleshooting. Plus, the hardware maintenance and upgrades also require additional costs.

5. Improve Customer Experience

As with any other industry, customer satisfaction is crucial for companies. By implementing SaaS, insurance companies can significantly improve customer experience.

SaaS solutions are easy to scale and easy to update which can be leveraged to keep up with customers’ changing expectations.

6. Security

Personal details, payment information, and other customer data must be securely stored. This requires insurance companies to keep up with industry standards and ensure the latest security updates.

Contrary to popular belief, SaaS is not unsafe in comparison to on-premise ones.  SaaS can be far more secure since the providers will consistently provide updates and ensure to keep the security infrastructure intact. Furthermore, the company’s IT team need not focus on security threats and management.

Preparation – Is Your Business Ready for a SaaS Platform?

Typically, insurance companies will have an overall business architecture and a core system. A new SaaS product must be integrated into the existing system. Yet, it is imperative for insurance companies to carry out a self-assessment before planning the integration, and consequently, the transition.

Occasionally, companies can face a few roadblocks during the integration. However, by collaborating with technology partners like iNube, insurance companies can smoothly integrate SaaS solutions and get started with growing their business.

Additionally, insurance companies must examine their integration inventory and instruct the providers about applications that will offer them greater capability.

Closing Lines

From enabling innovation, enhancing speed, effectively handling business growth, and managing costs – the SaaS insurance solution presents itself as a significantly better option than on-premise software. Most importantly, it helps insurance companies keep up with the present market’s customer-centric approach.

iNube offers a wide range of SaaS solutions that caters to General Insurers, Life Insurers, Health Insurers, and Intermediaries. You can explore the platforms and solutions by following this link –  https://inubesolutions.com/

Alternatively, you can contact us by clicking here. Our team of experts will reach out you and answer your queries.

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