Everybody thinks they know what Software as a Service is all about. But ask five software professionals, and you may get five different answers. With that in mind, I thought I’d address a few of the more common questions, concerns, and opportunities I get from customers and prospects.
Insurance carriers first want to know the technology differences between our SaaS and on-premises products. At a glance, and from the end user’s perspective, they are very similar. But, in fact, SaaS technology generally, and Duck Creek On-Demand specifically, is intended to be a holistic technology offering. SaaS gives carriers regular and immediate access to Duck Creek’s latest product upgrades, keeping your business current with features and functions while eliminating the difficulties of maintaining networking and computer infrastructure, security, and application upgrade efforts.
Typically, insurance carriers’ objections to SaaS stem from concerns related to their most recent due diligence on cloud providers, and it’s relative to their comfort level with their own data center, which is a known entity for compliance and security. Completely understandable. What is remarkable is the degree of investment and change that has occurred over the past two-to-three years by cloud providers to address enterprise concerns and scale. When they sit with our suppliers, like Microsoft, which supplies us with Azure, Duck Creek customers and prospects come away with a highly confident view of hyper-scale cloud and our On-Demand model. Many tell us that we are more secure than what they already have. We have never had anybody come back to us and say, “You’re not ready.” Universally, it’s been the opposite.
Value vs. Pricing for SaaS Models
These conversations typically move to pricing very quickly, and SaaS models generally tend to be less expensive than conventional models. Rather than purchasing the hardware, software, implementation and integrations, SaaS models are akin to a lease, which will appeal to financial people, for whom the phrase: “never buy depreciating assets” is a kind of mantra. Duck Creek On-Demand is no different in that it provides carriers with a business solution that is ready to run and priced based on usage. And there are many different starting points carriers can select in the migration of their core system. Like ordering à la carte, insurers can select a full solution but roll out only to a subset of their business. This allows for a test-and-learn process while the business adapts and scales by adding locations and/or lines of business.
Our customers get it. Insurance execs who have selected On-Demand recognize they are leveraging a technology that provides speed to market both upfront and on an ongoing basis.
For those eager to move off their current system… we understand: You have sunk costs into your data centers and core systems and need to proceed in such a way as to effectively manage change, all while refocusing technology resources to improve data-driven decision making and the customer experience as well as streamlining business processes.
Customer Experience and the SaaS Model
The biggest surprise for those insurers who have made the switch is just how up to date SaaS systems are and what a big difference that can make. Consider this: In many cases, we have found that the systems being targeted for replacement have not been updated for many years. Contrast that with our On-Demand customers, who receive continuous updates, both major and minor, starting the moment they subscribe. This could translate to as many as a dozen or more updates a year. The result is a dramatic change in the expectations of the innovation cycle time. It quickly becomes the “new normal.”
This speed, combined with higher service levels, resets baseline expectations across all suppliers. In short, opportunities to innovate increase, not just because of the software’s capabilities, but because of the pace of change. Our clients and end users are more energized, engaged, and actively benefiting from that engagement, as are the insureds. That agility translates into higher retention and satisfaction levels.
Lastly, when our customers combine frequent updates with SaaS’ ability to scale for business demands of all sizes, it allows them the flexibility to grow their business proportionally to the costs of running that business. Duck Creek On-Demand leverages that elasticity to benefit insurers of all sizes. The ready-to-run solution, inclusive of mobile and self-service experiences, electronic rating content, and our solution partner ecosystem, all scale technically and commercially.
That’s a positive customer experience.
Duck Creek Technology is the only insurance SaaS provider that offers a full-featured end-to-end insurance solution, which, together with our On-Demand partner ecosystem, is designed to help your company become more competitive. When the core competency of hosting a platform and owning all of the innovation associated with that stack moves out of your shop, your IT staff is freed up to work on business-focused projects.
If you’re ready to discuss the impact that SaaS-based P&C core systems can have on your business, shoot me a message. I have a direct connection to one of the best options in the industry.
Bill Bond, Chief Technology Officer, william.e.bond.jr@duckcreek.com
