What's the difference between cloud-based and on-premise underwriting platforms?

The difference between cloud-based and on-premise underwriting platforms in insurance is that cloud-based platforms are hosted on remote servers and accessed virtually, whereas on-premise platforms are located on-site and are managed by an internal IT team.

Cloud-based underwriting platforms like Gratex’s UPM+ Cloud offer:

·         Lower upfront costs and a subscription-based model.

·         Maintenance and updates are handled automatically through end-to-end platform management.

·         Heightened accessibility with services available anywhere, at any time.

·         Easier scalability of services and the ability to adjust resources as required.

·         Increased flexibility and adaptability as business needs change.

·         A reduced administrative burden on internal staff.

On-premise underwriting platforms offer:

·         Higher upfront infrastructure costs.

·         Hosting on local servers with data stored in a physical location.

·         Absolute control over data at a granular level.

·         Reduced likelihood of disruptions or downtime due to external factors (e.g. internet outages).

·         Control over internal infrastructure and frameworks.

Cloud-based underwriting platforms are highly accessible and scalable. They use a pay-as-you-use model that makes them more affordable; especially in the beginning as there is a lower upfront cost compared to on-premise platforms. However, with services managed via third-party cloud hosting service provider and reliant upon the internet, cloud-based platforms do expose insurers to:

·         Potential technical issues that disrupt day-to-day workflows.

·         Downtime if there are problems with the internet connection.

As on-premise underwriting platforms are installed on a company's local servers, they provide greater autonomy over data security and workflows but require significant upfront investment and internal IT management. The insurer needs an in-house IT team to perform these tasks manually, requiring the right talent, resources, and budget allocation. On-premise platforms also tend to:

·         Rely on legacy models that lack the scalability of cloud-based platforms.

·         Reduce the insurer’s adaptability to change.

·         Be cost-heavy and resource-intensive.

Choosing the best-fit deployment model for your insurance underwriting software is vital for optimising operations, data security, resilience, and adaptability. Both cloud-based and on-premise underwriting platforms have pros and cons. The best option for you depends on the unique business requirements of your insurance underwriting agency. Overall, Gratex recommends the automation, innovation, flexibility, and scalability offered by cloud-based underwriting platforms such as UPM+ Cloud.

How can Gratex help?

At Gratex, the mission is to drive digital transformation for insurance underwriting agencies across Australia and New Zealand. Gratex provides customers with the freedom to grow and the agility to innovate.

Find out how Gratex can help your underwriting agency get ahead with tailored service offerings:)