The insurance industry is evolving rapidly, driven by the need for data-centric transformation in how policies are created, managed and delivered. This shift to cloud-first approaches and advanced analytics has positioned cloud providers as essential allies to the insurance sector, particularly in enhancing operational resilience and customer experience.

Recognizing the potential of this tech-forward trajectory, Amazon Web Services Inc. and Guidewire Software Inc. joined forces to leverage AWS’ cloud infrastructure and Guidewire’s expertise in property & casualty insurance technology. Together, they aim to deliver advanced solutions that modernize policy management, optimize claim processes and expand customer engagement across global insurance markets.

“Guidewire is a leading technology provider to the property and casualty insurance industry that supports about 25% of the direct written premium of insurers globally,” said Will Murphy (pictured, left), vice president of marketplace and technology alliances at Guidewire, following a recent interview with theCUBE. “We provide core systems for claims, billing and policy administration … [and] analytics and AI for the property and casualty insurance industry.”

Murphy and Maria DeGrandis (right), global lead of financial services strategic technology partnerships at AWS, joined theCUBE’s Rebecca Knight, during a CUBE Conversation from SiliconANGLE Media’s livestreaming studio. They discussed AWS’ cloud infrastructure and Guidewire’s software expertise as key to enabling seamless core systems management, compliance alignment and AI-driven insights, which support insurers in delivering improved customer experiences. (* Disclosure below.)

A collaboration that drives data-centric transformation in insurance

As the insurance sector modernizes, data-centric transformation and cloud-based ecosystems are essential for integrating services and boosting efficiency, according to DeGrandis. Guidewire and AWS combine strengths to offer a unified, cloud-centric environment where data, core business processes and customer interactions are synchronized.

Guidewire’s shift to a software-as-a-service platform running on AWS stands out among ISVs serving the financial services and other industries, according to DeGrandis. Rather than simply hosting its on-premises solution on cloud infrastructure, Guidewire reengineered its core services to leverage AWS’ cloud capabilities, focusing on scalability, resilience and adaptability.

“They didn’t just lift and shift their existing application,” DeGrandis explained. “They refactored it and reengineered it to take advantage of AWS foundational services.”

At the heart of this ecosystem approach is a commitment to interoperability, according to Murphy. Guidewire collaborates with over 220 technology companies and 43 consulting partners, providing customers with a wide range of solutions that integrate into the core insurance platform.

“We don’t want to do everything,” Murphy said. “We want to work with the best-of-breed solutions and consulting partners from around the world.”

By building this robust partner ecosystem, Guidewire aims to simplify the complexities of insurance operations. AWS enables Guidewire’s ecosystem to offer end-to-end solutions that cover everything from document management to advanced data analytics. This technology infrastructure, paired with AWS’ global presence, ensures customers in diverse regions can access the tools they need to enhance business outcomes, according to DeGrandis.

“It makes complete sense that we would partner with [a company] like Guidewire, who brings that core functionality and also looks at the entire ecosystem,” she said. “Running an insurance business isn’t just about one application. When we’re looking at delivering for our customers in the insurance industry, how do we give them best-of-breed … across the end-to-end workflow, from acquiring their customers to paying out a claim?”

A collaborative approach to AI, compliance and smooth transitions

As AI and generative AI gain traction in the insurance industry, regulatory concerns continue to shape how these technologies are adopted. Guidewire and AWS are addressing these challenges head-on with a shared commitment to balancing innovation with compliance in a data-centric transformation approach, according to Murphy. By proactively engaging with regulators and aligning its solutions with local requirements, the company provides insurers with the flexibility to adopt new technologies without compromising on compliance.

“We very intentionally built our cloud platform with privacy and security regulations in mind and with the global customer in mind,” Murphy said. “Working with AWS, we’re able to have country-specific data centers and disaster recovery and all the things that have come to be expected.”

Guidewire’s approach to AI and machine learning takes advantage of cloud-enabled compliance and operational resilience considerations. By running on AWS, Guidewire can offer region-specific data centers and disaster recovery solutions, supporting regulatory requirements across diverse geographies, according to Murphy.

“We’ve leaned into talking to the regulators [and] to leading law firms across the EU,” he said. “[We’ve discussed] how we can best prepare customers to not ignore the massive amount of innovation and efficiencies they’re going to get by using AI and machine learning.”

AWS plays a crucial role by providing a mix of cloud, industry and regulatory expertise, especially as insurers adopt more complex AI-driven solutions. This support helps both Guidewire and its customers better understand possibilities and constraints for adopting this technology, easing the path toward a cloud-first strategy for insurance companies, according to DeGrandis.

“AWS supports 143 different security standards, compliance certifications and regulations,” she said. “We help satisfy compliance regulations for virtually every regulatory agency around the globe. At a financial services industry level, we also have a compliance and regulatory organization with specialists … who collaborate with our partners like Guidewire … to address their specific needs in jurisdictions around the world.”

Here’s theCUBE’s complete video interview with Will Murphy and Maria DeGrandis:

(* Disclosure: Amazon Web Services Inc. sponsored this segment of theCUBE.)

Photo: SiliconANGLE