The combination of business intelligence (BI) and Software as a Service (SaaS) is generating interest among insurers looking for a fast, secure solution that generates a greater return on investment.
Insurers’ growing frustration with traditional “on-premises” software implementations is fueling greater interest in SaaS BI solutions. Despite new technological advances, the common perception of on-premise solutions is that they take longer, cost more and end up being more complicated than expected.
SaaS speeds time to value by removing many of the traditional steps of software implementation. Rather than designing and building a BI solution from the ground up, SaaS-delivered BI leverages an existing platform.
The time savings afforded by this solution is especially evident with insurance-specific SaaS BI applications where insurance business content is already inherent in the solution.
Lowering the Total Cost of Ownership
While the costs associated with the traditional software model (i.e., buying software, completing a complex implementation and absorbing the ongoing cost of labor to support and maintain the software) have improved slightly over time, SaaS BI solutions can significantly reduce the total cost of ownership.
The ability to share the technology investment and human resources across multiple clients allows SaaS applications to deliver high-quality service at lower prices.
“We concluded a build approach would be cost prohibitive looking at the ongoing maintenance and learning curve required,” says Joe Scollo, chief operating officer for American Safety Insurance.
SaaS requires no software purchase or infrastructure and offers rapid deployment and subscription pricing, resulting in an immediate and positive impact. SaaS subscription fees also include ongoing support, upgrades, access to a help desk and enhancements.
American Auto Guardian, Inc., an administrator of VSCs and other aftermarket products for auto dealers throughout the United States, selected iPartners, a provider of “on-demand” management information and analysis solutions, to serve its BI needs.
“Our business model is not to develop software internally due to the expensive start-up and maintenance costs,” says Jim Devers, American Auto Guardian’s chief operating officer. “Our philosophy is to find a business partner who has a proven track record and expertise and develop the software solution with them.”
Ensuring Effective Security
New technology inevitably leads to discussions about security. Insurers considering a SaaS-delivered solution should feel confident that the SaaS provider has a good solution fit, a track record of success and the appropriate measures in place to provide effective data security.
“Without data security, there is no SaaS. It is our No. 1 priority,” explains Tom DiMarco, vice president of operations for iPartners. “We have implemented security measures at every level of our solution and are open to sharing our strategy with our customers and prospects.”
Effective security requires attention to detail and should involve a multi-layered defense in the infrastructure, applications and communications. An insurer’s SaaS provider should invest in SAS 70 Type II audited hosting facilities, high-availability hardened networks with intrusion detection and prevention systems, frequent third-party penetration testing, encrypted redundant data storage, segregated customer databases, strict data access permissions and disaster recovery.
“We know our data is in good hands with iPartners, our SaaS provider,” says Rob Shoenfelt, chief information officer for Celina Insurance. “Security is one of its priorities and core to the ongoing success of its business.”
