Start breaking free
Stop limiting your operations
INSURANCE RISK MANAGEMENT WITHOUT COMPROMISE
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Rise above your operational challenges
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Get your head around the cloud
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What's wrong with running risk IT in- house?
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Why compromise insurance risk management?
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Insurance Risk Management without Compromise
WHY COMPROMISE INSURANCE RISK MANAGEMENT?
Did you know?
Jonathan Silverman Director of insurance solutions, Microsoft
Insurers are recognizing the value of having access to unlimited compute capacity for risk modeling and . . . making substantial cost savings with infrastructure related to the risk modeling workload.
But as the modeling environment gets more complex, models become more costly to build and run.
With more calculations to make and more detailed reports with shorter timeframes, actuarial models must be both sophisticated and efficient.
To deliver on all fronts, you need peak performance without driving up costs.
In today’s increasingly regulated and data-driven insurance industry, actuaries and risk managers have a tough job on their hands. Around the world, regulations are growing more demanding and complicated. IFRS 17 and Long Duration Targeted Improvements (LDTI) to U.S. GAAP are the most significant accounting updates to hit insurers in decades; and in parallel, many insurers are looking at solvency modernization. The pandemic will almost certainly lead to yet more changes and the acceleration of certain initiatives to ensure strong risk management and operational resilience.
Insurance companies are more aware than ever of the wealth of information at their disposal. Their ability to extract value from data using advanced analytics has become critical to competitive advantage.
For actuaries, the pressure is on to gain greater insights from big data and rapidly transform modeling results into business intelligence.
Rick Yuan Head of actuarial modeling and transformation, AIA Group
We needed to run a projection tens of thousands of times to come out with a range of possibilities. One solution was to purchase more hardware, but the obvious winner was move to the public cloud. The beauty is you can tap that capacity when you need it and switch it off when you’ve finished the calculation.
What’s wrong with running risk IT in-house?
75%
You could perhaps justify these costs if the servers were active throughout the year. But most risk and regulatory calculations happen at peak times, such as quarter and year ends, when systems may need five times more computing power than in quieter periods.
Since the earliest days of actuarial software, on-premise deployments have been the norm. You purchased not only the software license but also the servers to house and power your system. Responsibility for hardware, maintenance, security, upgrades and backups was yours. Increasing your computing capacity to improve model processing power meant buying more cores for your internal data center. That’s just how things were done. But as actuaries perform more model runs of increased complexity and size, the traditional operating model is struggling to cope. Insurers are stretching in-house IT infrastructure and resources to the limit. And with numbers of cores running into the thousands for large insurers, they’re pouring money into upfront capital expenditure.
Most risk and regulatory calculations happen at peak times, such as quarter and year ends, when systems may need five times more computing power than in quieter periods. Leaving infrastructure sitting idle for 75 percent of the time and charging you for the privilege.
And all the while, you’ll need to keep taking care of both the hardware and the software that it’s running, as well as managing all the operational risk. Plus, while your staff may get to know the system, when they move on they take their expertise with them.
With so much costly, inflexible IT to manage, your on-site infrastructure could be holding you back.
30%
43%
David Elliott Architecture manager for financial services, Amazon Web Services
For insurers, the question isn’t "if" (they will migrate existing applications to the cloud) – it’s how fast they can move and what are they going to move first?
Are you ready to join the highest flyers?
According to FIS’ research, 43 percent of the fastest-growing insurance companies have migrated one or more mission-critical applications to the public cloud, compared to just 30 percent of the rest of the industry.
As an insurance risk manager, where do you stand on the cloud?
If moving your IT infrastructure off premise strikes you as an exciting operational opportunity, then full marks for a pioneering spirit. But if the cloud sounds like a risk too far, you won’t be alone in thinking twice about making the switch. It’s fair to say that insurers have traditionally taken a conservative approach to technology. However, times are changing – and faced with a growing range of challenges, more insurance risk teams in particular are putting their reservations to one side and discovering the limitless potential of the cloud for actuarial modeling and risk management.
But beyond lockdown conditions, there are more reasons than ever to run your organization’s most powerful systems in the cloud.
In 2020, unprecedented global circumstances have shown us all the benefits of hosted IT for business continuity and remote working.
Chief risk officer Major insurance company
The accommodation of large data sets, highly demanding algorithms and the hardware for instant computational resources make the cloud ideal for large-scale data analysis.
Deliver speed and scale
Save time
Eliminate risk
Things are looking up. But there’s more than one kind of cloud service to consider.
The good news is that if you’re outgrowing your traditional, on-premise IT setup, you can easily remove many of its costs, risks and limitations by moving your insurance risk management platform to a managed cloud service. Imagine the ability to deliver both speed and scale in an elastic actuarial modeling environment you can bend to your will. Factor in the move from capex to opex, which will instantly reduce your total cost of ownership. And with software delivered straight from the cloud to the desktop, you’ll save tremendous time and risk by handing every aspect of complex modeling technology to an expert provider.
Managed cloud services give you the power and scalability of a sophisticated actuarial modeling and risk management platform, but reduce the challenges, costs and risks of provisioning infrastructure and managing the underlying IT.
Hand every aspect of complex modeling technology to an expert provider and you'll reep the benefits:
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About FIS
FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our more than 55,000 people are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS is a Fortune 500® company and is a member of Standard & Poor’s 500® Index.
