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☁️ '''Cloud migration''' is the process by which an [[Definition:Insurance carrier | insurance carrier]], [[Definition:Reinsurance | reinsurer]], [[Definition:Broker | broker]], or other insurance organization moves its applications, data, and IT infrastructure from on-premises data centers to [[Definition:Public cloud | public cloud]] or hybrid cloud environments. In an industry historically characterized by [[Definition:Legacy system | legacy systems]] — many built on mainframe or monolithic architectures decades ago — cloud migration represents one of the most consequential technology shifts underway, reshaping how insurers manage [[Definition:Policy administration | policy administration]], [[Definition:Claims management | claims processing]], [[Definition:Actuarial analysis | actuarial modeling]], and [[Definition:Regulatory reporting | regulatory reporting]].

🔧 A typical cloud migration in insurance proceeds through several stages: assessment of the existing application portfolio, classification of workloads by complexity and regulatory sensitivity, selection of a migration strategy (often categorized as rehost, replatform, or refactor), and phased execution with rigorous testing. Insurers must navigate specific constraints that other industries may not face to the same degree. [[Definition:Data protection | Data protection]] regulations such as the EU's GDPR, sector-specific supervisory expectations under [[Definition:Solvency II | Solvency II]], and guidelines from regulators like the European Insurance and Occupational Pensions Authority (EIOPA), the Monetary Authority of Singapore, and US state [[Definition:Department of insurance | departments of insurance]] all impose requirements on data residency, third-party outsourcing, and operational resilience. Consequently, insurers often adopt a hybrid approach, keeping the most sensitive workloads — such as [[Definition:Reserving | reserving]] engines or [[Definition:Personally identifiable information (PII) | PII]]-heavy claims databases — in private or on-premises environments while moving analytics, development platforms, and customer-facing applications to public cloud providers.

📈 Beyond cost optimization, the strategic payoff of cloud migration lies in the agility it unlocks. Insurers that successfully migrate can scale [[Definition:Catastrophe modeling | catastrophe modeling]] computations on demand, deploy new [[Definition:Digital distribution | digital distribution]] channels faster, and integrate with [[Definition:Insurtech | insurtech]] partners through cloud-native APIs rather than cumbersome point-to-point connections. For [[Definition:Managing general agent (MGA) | MGAs]] and smaller carriers, cloud-based infrastructure dramatically lowers the capital threshold for launching new [[Definition:Insurance product | products]] or entering new markets. The shift also supports real-time data sharing with [[Definition:Reinsurance | reinsurers]] and regulators, improving transparency across the value chain. However, migration failures — often caused by underestimating the complexity of legacy interdependencies or neglecting organizational change management — remain a significant risk, making careful planning and experienced [[Definition:System integrator | system integrators]] essential to successful execution.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Public cloud]]
* [[Definition:Legacy system]]
* [[Definition:Operational resilience]]
* [[Definition:Insurtech]]
* [[Definition:System integrator]]
* [[Definition:Data protection]]
{{Div col end}}

Definition:Cloud migration - Revision history

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