Toronto, ON (Sept. 3, 2013) – Insurance Business Analytics consultancy InEdge has completed its analysis of Software as a Service (SaaS) and its impact on Business Intelligence for insurance companies, revealing unexpected repercussions for insurers considering enterprise-wide Business Intelligence under an SaaS deployment model.
SaaS is a software deployment and delivery model typically associated with centralized, remote architectures, cloud computing, and applications or results delivered via the Web and accessed via Web browsers. Access to the software is on a subscription basis, with SaaS vendors offering the enticement of lower deployment costs, and pricing based on usage rather than outright ownership.
Two fundamental aspects of SaaS are in opposition to the needs of the insurance industry. These are the twin needs of the SaaS vendor to maximize user volume while minimizing deployment costs. The less customization there is, the more profitable the SaaS model becomes, for the vendor. However, from an enterprise customer perspective, customization is central to the competitive advantage, regardless of whether an application is delivered under the SaaS model or not.
InEdge has determined four main potential impacts of SaaS on insurance Business Intelligence. First, customization in SaaS is costly, if not altogether impossible, since the business model precludes it. Second, because customers are driven towards the use of �standard� applications under the SaaS model, business processes must be remodeled to fit what�s on offer. Third, SaaS applications cater to vertical business processes, which can result in functional �silos� of reporting with little integration of data sources from different areas of the enterprise. Fourth, the insurance industry traditionally favors the acquisition of the source code for key operational support applications, a difficult objective under SaaS.
For further details, read the full article: Top 4 Impacts of SaaS BI on Insurance Companies.
InEdge is a consultancy specialized in Business Intelligence and Analytics for the insurance industry. Expert at quickly leveraging data, InEdge seamlessly and powerfully creates business advantage for its clients. Over $10.25 billion Property & Casualty direct written premiums are analyzed through solutions designed and implemented by InEdge’s experienced team. InEdge is headquartered in Montreal and has offices in New York and Toronto. Visit www.inedge.com for more information.