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Digitisation strategy

Insurers depend on cloud solutions

Cloud computing plays an important role as the driver of the digitisation of companies. Insurance companies too are aware of the advantages of cloud solutions. They use the flexible SaaS model in particular.

Cloud computing is largely here

Cloud computing plays a key role in digitisation. This also goes for insurers who are pressing on at full speed with their digital strategies. Around eight out of ten companies in the financial and insurance sectors use cloud computing, according to Cloud Monitor 2022, a recent study carried out by Bitkom Research on behalf of KPMG. ‘Cloud users in the financial industry have understood the relevance of cloud computing to their future competitiveness’, remark the analysts at KPMG.


Cloud computing means that instead of being installed on a local computer, applications, services and data are available as a service on the cloud. The public cloud, where software applications are provided as a service (SaaS), is the typical cloud computing model. The user no longer purchases the software for a fixed licence fee: they use it straight away and pay a usage-based fee, often in combination with fixed basic fee components. In practice, other models such as private clouds, community clouds and hybrid clouds are used to provide digital services.

Cloud computing is enabling new business models

Numerous studies underline the importance of cloud technology as a driver of digitisation. Instances of this within the insurance industry include the creation of new ecosystems, the development of new business models and their integration into platforms, and new ways of collaborating with various partners in particular.

Powerful and flexible

The disruptive power of the cloud is becoming a key characteristic of changing IT landscapes, as cloud solutions are also becoming usable in the field of core or policy administration systems for the first time. Complex, customisable standard software for administrating insurance contracts can now be operated and used without a dedicated data centre. This results in significantly lower development costs for insurers – hardware-specific maintenance and operating costs can also be lowered and the lower administrative costs per contract can be passed on to the end customer.


This is exactly what it boils down to; with rising cost pressure and new regulatory requirements having to be implemented constantly, insurers have to do one thing first and foremost: save money. Cloud solutions can help them do this, as they offer flexibility and a fast time to market, but also enormous opportunities in terms of cost reduction and control, performance and reaction speed.

Insurers are interested in SaaS models in particular

According to the PwC study entitled ‘Cloud computing in the insurance industry 2022’, most insurers prefer software-as-a-service (SaaS) models. The use of SaaS provides insurers with a range of advantages. Usage-based pricing models are transparent and offer excellent planning certainty. As maintenance and operation are the responsibility of the SaaS provider, they do not incur any additional costs. Small and medium-sized insurance companies can profit too as they can participate in complex systems in line with their requirements and without the need for large, risky investments.

SaaS models make life easier in terms of regulatory requirements and compliance

Data protection, data security and storage location, IT security and operational resilience are some of the most important factors in a decision for or against the cloud. Compliance with the duties and requirements (VAIT, DORA, C5 etc.) is a time-consuming and cost-intensive endeavour. SaaS models offer relief here as the operator of the cloud, with appropriate processes and resources at its disposal, assumes responsibility for implementing all the requirements in a lawful manner.


Regular security updates from the cloud provider also ensure that vulnerabilities and security flaws are dealt with quickly. Cloud providers offer high data protection and security standards and have the certificates to prove it. Insurers should only choose cloud solutions that meet their standards and specifications in terms of IT security, compliance, risk management and data integration.

Secure, flexible and precise

The complete solution msg.Insurance Suite is your entry point to the cloud: This holistic management platform for insurers and pension funds consistently exploits the advantages of cloud computing and offers the highest quality and security standards at the same time. This technologically sophisticated and standardised solution covers all insurance operations across all segments and automates all the necessary business processes


msg.Insurance Suite can be operated on your premises or in a cloud environment of your choice on the basis of a traditional licensing model. In cooperation with a strong partner, msg insur:it also provides the standard solution in the form of software as a service. msg.Insurance Suite can be customised in close cooperation with the specialist departments. You, the customer, remain in functional control. Additionally, msg insur:it uses continuous delivery in combination with cloud technology. This allows for a thoroughly automated software development and deployment process. This way, msg insur:it is able to provide a fast time to market as well as powerful yet reliable cloud operation.