The P&C insurance industry is approaching a cloud adoption tipping point. Insurers are migrating strategic applications to the cloud in addition to non-core applications such as email and web conferencing that have become commonplace. The potential for cloud-based claims technology to create new value and competitive advantage is emerging. The potential for insurers to misfire and select second-rate technology looms.

According to Aite Group, a $36 billion opportunity exists for American P&C insurers to embrace innovative claims technology. Advances in mobile devices, wireless connectivity and cloud software including mobile apps, all combine to present P&C Insurers with the opportunity to re-think and re-define the claims settlement experience in 2014.

Some early adopters of cloud-based claims technology are already tapping into the billion-dollar opportunity through automation, real-time collaboration, re-wired processes and integrated mobile working. However, some insurers are experiencing sub-standard services as established P&C claims software companies migrate legacy platforms to the cloud. Technology companies that have traditionally realized success in the P&C claims sector are struggling to roll out cloud services–showcased by repetitive downtime and reverting to earlier software versions.