Insurers find themselves much more comfortable doing business with the private cloud services available on the market today because these services offer a controlled environment that doesn't have the public perception that their customer data is being stored on servers that also houses data for hundreds of other businesses.
But that doesn't mean carriers should shy away from using some of the public cloud services, such as Amazon Web Services (AWS), which offer customers nearly unlimited computing power that can be used on an as-needed basis.
Insurance companies also are using the public cloud for less sensitive issues, according to Chad Hersh, a partner with the analyst and consulting firm Novarica. For example, Hersh explains that carriers can run actuarial models in the public cloud as long as they have scrubbed the data to the point where it no longer has any private or sensitive information.
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