Underwriting insurance is tough enough; most agencies wouldprefer not to wade into the fog of IT, especially given just howobtuse the tech world has become.

Related: Pressing tech issue: Enterprise software vs. cloudcomputing

For those insurance brokers making the shift from an in-housesolution to the cloud, getting the language right is Job One.Familiarizing yourself with some basic terminology won't turn youinto a tech expert, but it can provide a grounding in thefundamentals. That, in turn, can make agents and brokers wiser ITconsumers, and perhaps a more even savvier users.

With that in mind, here are a few cloud terms and concepts forinsurance agents and brokers.

Public cloud vs. private cloud vs. hybrid cloud 

As the cloud has expanded, it more or less subdivided into thefollowing three segments:

Private cloud service is, proprietary orinternal to one organization;

Public cloud service providers makeapplications and storage available to any business overthe Internet, typically for a monthly usage fee;

Hybrid cloud providers blend both services.

These days, the hybrid cloud is ubiquitous. The majority oforganizations rely on servers and computers, and some data resideson various desktops; some is stored with Apple or Dropbox orMicrosoft, and some organizations haveembraced Infrastructure as a Service (IaaS)or Software as a Service (SaaS). I'll get intothat in more detail below.

The smart question for insurance agents, brokers and businessesisn't: Should I opt for the hybrid cloud, the public cloud, ora private cloud?

The question that people in the insurance business should beasking is: Strategically, what's best for myorganization?

When you frame the query in that manner, you can determine whereto place your computing power, and you begin to gain control overthe dynamic.

Want to reduce costs? Increase efficiencies? Achieve some otherobjective? Go back to basics. First, decide what yourmetrics are and how they serve the business. Then, selectthe technology. 

SaaS, IaaS and PaaS

At its most basic level, Infrastructure as aService (IaaS) enables insurance agencies to move all orpart of their compute environment to the cloud — that is, offpremises — and make the migration without modifying any of theirexisting applications. The market is now awashin IaaS tools and technologies, empowering insurancebrokers who may lack traditional computing resourcesto benefit from robust products and platforms. 

In the mushrooming world of the cloud, IaaS is distinguishedfrom two other "as a service" models: Software as aService (SaaS) and Platform as aService (PaaS).

SaaS is essentially a software rental model, where individualapplications are hosted — again, off-premises — for a monthlysubscription fee.  All users need is a web browser andthey're good to go.

Platform as a Service (PaaS) is somewhat more ambitious whileremaining steadfastly user- (and application-) specific. PaaS isideal for insurance agencies writing applications that are specificto their business. They don't need to build and maintain theinfrastructure usually required to develop and launch an app. PaaSmakes it possible, even easy, to develop applications rapidly withlittle technical know-how — applications that aren'tintended to be sold but that run on a single, captive platform.

Related: 16 of the coolest P&C insurer mobileapps

There's just one catch: If the platform for which the app waswritten changes or ceases to exist, users are out of luck. WithPaaS, internal development teams may need to ride the ITrollercoaster, forever investing and reinvesting inplatform-specific application development.

The question that people in the insurance business should beasking is: Strategically, what technologies are best formy organization? (Photo: iStock)

The mnemonics of information security

For insurance brokers operating in today's cyber minefield, security is process,not an event. It's a mindset, not a matter of checkingboxes and moving on, as one might on a claim form.

Related: Protectingagainst cyber risks

Sound security planning requires assessing threats,choosing tools to meet those threats, implementing those tools,assessing the effectiveness of the tools implemented — andrepeat.

At minimum, what steps must insurance agenciestake?

They might consider such measures as clustered firewalls,multi-factor authentication — that is, 'layered passwords' —intrusion detection and prevention systems (IDPS), which go aboveand beyond traditional firewalls.

Increasingly, threats are emanating from Distributed Denial of Service(DDoS) attacks on hosting providers and frommassive volumetric attacks. These attacks are somethingnew and particularly troubling, and no single firewall can stopthem, especially when the attacks originate from connecteddevices.

Related: 6 ways cybersecurity changed in2017

This summery served as more of a tech teaser than a properprimer. But it does provide insurance agents and brokers with asampling of the jargon that typically separates the IT realm fromthe world of policies and premiums.  The more you know,the more you're in a position to bring those worlds together, forthe betterment of your agency and for your clients.

Adam Stern is founder and CEO of InfinitelyVirtual, a Los Angeles-based cloud serviceprovider for clients in the insurance space. He can be reached bysending email to [email protected].

See also:

Customer expectations: 4 digital technologyimplications for insurers

5 high-tech challenges (and solutions) for today'sindependent agents