Software as a Service: how it can benefit insurance companies - Curacel

Software as a Service: how it can benefit insurance companies

October 5, 2021

What is SAAS?

Software as a service (SaaS) is a software distribution model in which a cloud provider hosts applications and makes them available to end-users over the internet. It represents applications hosted on the cloud (e.g Curacel Claims Automation) and accessible via a smartphone or web interface.

It’s no surprise that the Software as a service (SAAS) model has dominated the software service delivery methods. This can be seen in how it’s driving insurance growth globally. Insurance companies in Africa are also witnessing this sporadic growth caused by the SAAS model and how it has helped in speeding up innovation discovery and delivery.

According to an available report on global SAAS; The global Software as a Service (SaaS) market size is projected to reach USD 307.3 Billion by 2026, from USD 158.2 Billion in 2020, at a CAGR of 11.7% during 2020-2026.

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For example, when an insurance company embraces the SAAS model, they don’t have to build everything – from infrastructure to solutions, themselves. The insurer can outsource, partner, or collaborate to deliver value to its customers. A perfect analogy would be how insurance companies are partnering with Curacel to speed up their claims processing and detect fraudulent claims.  

Read: Using Technology to Tackle Insurance Fraud in the Booming African Market

It’s easy to acknowledge why the SaaS model has had such a significant impact because of the convenience that this operating model has ushered in. 

SaaS is :

  1. Enables insurance companies cater to their client needs.
  2. Reducing hardware and software costs.
  3. Offering data protection.

According to McKinsey, the African insurance market was expected to grow, before the COVID-19 pandemic, at 7 percent from 2020 to 2025. The pandemic has sped up the shift toward digitalization, which McKinsey researchers hope is a promising trend for augmenting insurance distribution.

SaaS benefits to insurance providers:

· Accessibility: it gives insurance companies the ability to operate from the cloud – anywhere. run via an internet browser from any device.

· Cost-Effective: there will be no or minimal hardware costs and flexibility in payment methods.

· Storing data: data is routinely saved in the cloud.

· Analytics: accessing data for reporting and intelligence tools has never been easier.

· Security: SaaS encourages providers to invest significantly in security technology.

A typical example of how SAAS enables insurance companies growth can be best described with the ease provided by Curacel Health Claims and Auto Claims that allows for efficient and reduced human intervention during claims processing. Health insurance (and HMO’s) firms benefit from Curacel’s AI (Artificial Intelligence) system, which processes claims in a short time with less cost.

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