Insurers find themselves much more comfortable doing businesswith the private cloud services available on the market todaybecause these services offer a controlled environment that doesn'thave the public perception that their customer data is being storedon servers that also houses data for hundreds of otherbusinesses.

But that doesn't mean carriers should shy away from using someof the public cloud services, such as Amazon Web Services (AWS),which offer customers nearly unlimited computing power that can beused on an as-needed basis.

Insurance companies also are using the public cloud for lesssensitive issues, according to Chad Hersh, a partner with theanalyst and consulting firm Novarica. For example, Hersh explainsthat carriers can run actuarial models in the public cloud as longas they have scrubbed the data to the point where it no longer hasany private or sensitive information.

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