The Great Equalizer: Cloud-Based Tech Allows Small Carriers to Think Big
Written by: John Sarich is Vice President of Strategy at VUE Software.
While the mere mention of the cloud might raise concerns among insurance professionals, cloud technology offers smaller carriers an ability to compete for business on a much larger scale by increasing efficiency and reducing costs.
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For mid-tier insurance companies, the application-deployment options that are available to their larger brethren simply do not exist. Today, the largest insurance carriers often exceed $10 billion in revenue while the industry’s smallest companies may write less than $100 million. Since the top-tier carriers have significantly higher budgets, resources, and experience, insurance-software companies often cater their products to meet the needs of these carriers with the highest revenue numbers.
This reality results in an increased burden for smaller providers that are already struggling to compete for business with companies that can be 10 times their size. The question on the minds of many smaller insurance company CEOs is: “Why can’t I get the same functionality that my larger competitors have, and do it on my budget?”
The short answer to that CEO’s question is simply “you can.” And not only can you get it, but it could very well surpass the feature and functionality of that “big” system.
Cloud technology has the potential to become the “great equalizer” within the insurance industry. Small and mid-size companies are able to compete in a significantly larger arena with this type of enterprise system.