Streamlining the Future of Life Insurance: How Our Collaboration with AWS is Pushing the Industry Forward

Streamlining the Future of Life Insurance: How Our Collaboration with AWS is Pushing the Industry Forward

Many large life insurers are considering or embarking on migration of core technology into cloud services. While no carriers will be completely cloud-based anytime soon, some are much closer to this goal than others.

Actuarial modeling, valuation and financial projections are some of the slowest adopters of cloud-based services, with industry estimates of cloud adoption for these core services at just 5-10 percent. Considering the incredible amount of compute power actuarial models need to run (we know many insurers with over 500 models running constantly), to not fully harness the power of cloud compute for these workloads is a major deficit.

There are hundreds, if not thousands, of articles detailing the many benefits of cloud computing, written by people far more experienced than myself, so I will get right to the point. For life insurance and actuarial modeling, here are the key benefits:

  • Data warehousing. Store all actuarial models in one location and make the data easily accessible by actuarial platforms to run actuarial models.
  • Increased compute capacity. Deliver far more granular and actionable insights through the ability to run exponentially more scenarios.
  • Reduction and transparency in compute spend. Today, life insurance carriers cannot track how much compute on-premise systems consume. Cloud-based actuarial services enable insurance carriers and actuarial teams to deeply understand and manage their consumption.
  • Effective use of actuarial talent. Becoming an actuary is a massive commitment, requiring hundreds of hours of study, annual recertification, and resulting in an average annual salary of USD$175k. Using this talent to re-run and fix errors in models or move data around is simply a waste of resources. Utilizing cloud computing, actuaries can operate more effectively and deliver insights which help improve financial projections - and impact the balance sheet.

All this to say, there’s a massive opportunity here to connect cloud capabilities with core actuarial processes. Montoux and AWS provide the tools carriers need to seize it.

Why AWS and Montoux together? AWS is the largest, most capable cloud provider in the world and the leading supplier of cloud-based services to the financial services industry, including insurance. This is thanks not only to its excellent compute capability, but its extensive network of partners which deliver the real value of cloud services to large enterprises. 

Montoux is the only cloud-native actuarial automation platform focused on improving actuarial efficiency and effectiveness. Our platform harnesses cloud services to speed up actuarial workflows, enabling insurers to deliver increasingly granular results, run more scenarios, and ultimately improve decision making. When financial projections can impact an insurer’s bottom line by billions of dollars, there’s a lot at stake in these decisions. No other actuarial platform harnesses cloud capabilities like Montoux. To put it in perspective, an insurer leveraging Montoux’s platform will reduce the time it takes to migrate from one actuarial platform to another from 5-10 years to under six months. 

Together, this powerful partnership combines best-in-class cloud compute technology and services with a platform specifically designed to help actuaries optimize their skills and time. Not only does this give insurers a competitive advantage in the market, it transforms actuarial teams from a compliance cost center to insights-driven, value-generating divisions in the business.

Cloud adoption in financial services is accelerating, including within life insurance. Leaving actuarial modeling and valuation behind the adoption curve is to leave money on the table. Existing limitations in traditional technology platforms makes harnessing the cloud a challenge that large insurers must tackle themselves, as no actuarial system has truly cloud-native capabilities. We’re here to change that. Utilizing cloud computing for actuarial modeling is a no-brainer; it improves actuarial teams’ effectiveness and efficiency, delivers the insights to improve financial projections, and provides transparency over compute spend. Our cloud-native platform, supported by the vast array of AWS services and unlimited cloud capacity, makes this transformation possible today. Are you ready to get started?

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