Why moving to a cloud-based CMS could strengthen your business

For some P&C (re)insurers in the London market, the idea of transitioning from an on-premise claims management system (CMS) to a cloud-based solution may still seem daunting. Concerns about regulatory compliance, data security, system integration and potential disruption can make some carriers hesitant to take the leap. With today’s technology, however, moving to the cloud is not only manageable, but a rapid route to gaining strategic advantage.

Regulatory compliance

One concern for insurers thinking about cloud adoption has been regulatory compliance. The London market operates in line with strict rules like GDPR, Solvency II and Lloyd’s standards, all of which require careful handling of claims data. But leading CMS providers ensure their platforms are continuously updated to align with the latest regulatory changes. Unlike on-premise systems that require manual updates and IT intervention to remain compliant, the better cloud-based systems now available are set up to adapt seamlessly. This gives carriers peace of mind, and reduces the burden of compliance.

Cloud security

There is a widespread perception that data stored in the cloud might be more vulnerable to cyber threats than data kept on-premise. In reality, the opposite is often the case. Many insurers now use cloud platforms for multiple aspects of their business, from underwriting systems to financial reporting tools. Cloud providers invest heavily in state-of-the-art security measures, including encryption, multi-factor authentication and continuous monitoring, to protect data from any breach. Modern cloud-based solutions also provide advanced disaster recovery capabilities, ensuring that data remains safe and accessible – even in the event of an incident.

Customisation without complexity

Another concern for carriers moving to the cloud is that they might somehow lose the flexibility to customise their CMS. While some cloud solutions may adopt a one-size-fits-all approach and attempt to enforce standardisation for commercial reasons, others have been built, from the ground up, with adaptability as a key consideration. Newer SaaS-based CMS solutions enable carriers to configure workflows, automation rules and reporting functionalities to meet their unique needs — without the need for complex coding or intervention from the vendor. API integrations can allow carriers to connect their claims systems seamlessly with external tools, maintaining functionality while gaining the benefits of a cloud-based platform.

Integration

Concerns about integrating a new cloud-based SaaS CMS with underwriting platforms, policy administration systems (PAS), and other internal and third-party services are often overstated. Many carriers today actively seek better API-driven integrations to improve operational efficiency. A good cloud-based CMS will support robust connectivity, enabling carriers to synchronise claims data across multiple platforms with minimal disruption.

Competitive advantage

The London insurance market has a reputation for being cautious when it comes to technological change. This presents an opportunity for more forward-thinking insurers. Those who transition to a modern cloud-based CMS can gain a significant advantage over competitors still relying on older on-premise systems. Enhanced automation, real-time data insights, and improved workflow-efficiency translate into faster claims processing and a better overall customer experience.

Migration

Migrating years’ worth of claims data from an on-premise system to the cloud might sound logistically challenging. It doesn’t have to be. The better technology providers have teams available who can help carriers apply structured data validation and cleansing processes to make sure only relevant and reliable data is transferred, reducing inconsistencies and improving overall data quality. With the right provider, you can expect minimal disruption during the transition.

Switching over

Anxieties over potential operational disruption during a CMS transition are understandable. But experienced vendors mitigate these risks with detailed transition plans and contractual service guarantees. It’s important to choose a cloud CMS that’s designed to deliver high availability and reliability, with safeguards in place to minimise downtime and ensure business continuity.

Testing

Testing and validation are critical to ensuring a successful CMS transition, and cloud platforms excel in this area. A good cloud-based CMS will undergo continuous testing, far beyond the levels seen in traditional on-premise environments. Frequent updates, automated testing frameworks, and agile development cycles can ensure that carriers benefit from ongoing improvements without the risks associated with bigger, less frequent system upgrades.

Long-term value

Some initial concerns over migration costs, training expenses and pricing over the longer term may be understandable, but the reality is that cloud-based CMS solutions tend to be more cost-effective over time. With a cloud-based claims solution you need pay only for what you need. Unlike on-premise solutions that require costly hardware investments and ongoing maintenance, cloud-based models reduce infrastructure costs, freeing internal resources for value-adding activities.

Reputational protection

Maintaining a good reputation in the London market is crucial, so any disruption to claims processing could be damaging. But with a well-structured plan and a trusted provider in place, any such risk can be reduced close to zero. With the robust security, minimal downtime and enhanced operational efficiency, that comes with a SaaS-based CMS like DOCOsoft Vew, carriers can expect to enhance their reputation, not risk it.

The future of claims management

For London market carriers, the shift to cloud-based claims management is no longer a question of if but when. DOCOsoft Vew is designed to make the transition as seamless and pain-free as possible. So, there’s no reason to hesitate. Advantages like improved compliance, enhanced security, smoother integrations, and greater operational flexibility far outweigh any perceived challenges. Those who make the move now will not only ease their operational burden but also acquire a new competitive edge in a rapidly evolving market. Moving to the cloud is not just achievable – it’s the right thing to do for your business.