In SAP Financial Services Industry Live, Bob Evans sits down with SAP executives, customers, and partners to gain insights into cutting-edge innovation in the banking market and the insurance market. In today’s episode, Bob talks with Toni Tomic, global head of insurance, SAP SE; Dariush Shoja, vice president and corporate CIO, Sun Life; and Andy Hefti, partner, financial services, Deloitte Consulting. The four discuss how the insurance industry is moving into the cloud and the role generative AI (GenAI) will play in its future.
SAP, Sun Life, and Deloitte | Innovating Insurance
The Big Themes:
- Cloud adoption challenges and benefits: Cloud adoption has been relatively slow because insurance companies and financial institutions tend to act conservatively, but now it’s picking up. A core cloud enabler has been the need to standardize and centralize systems in order to increase speed, bring down costs, and bring in more data quality and transparency.
- Generative AI integration: GenAI is the next step after the movement from on-prem to cloud is completed, although some companies have already begun integrating it. Gen AI, along with the cloud, will dramatically change insurance so that ten years from now the public might not even recognize where insurance is bought from or where it is included.
- Regulatory compliance and localized requirements: Global companies like Sun Life must make sure they meet many different countries’ regulations and requirements. Regulations can go beyond countries and regions and come from different companies or governments. Regulatory compliance for insurance often necessitates data centers in specific countries.
The Big Quote: “The objective is to further simplify, standardize, in the end, the core systems, because only by doing that [will] companies . . . be able to go into a public cloud now. The end goal … is not the private cloud. It’s the public cloud, and in the public cloud, standardization is a key topic. And in the public cloud, SAP is offering [the] right services.”