Cutting IT Costs in Insurance: Benefits of US Cloud’s Microsoft Support Service.

In Q3 of 2024, a wave of insurance companies missed their quarterly earnings goals. In light of this alarming trend, insurance companies are looking for ways to cut costs strategically to make the next financial quarter a better one.

The good news is that there are several opportunities for cost management that can make these goals a reality. One of these strategies is to significantly increase operational efficiencies while reducing Microsoft support costs. That’s where US Cloud comes in.

Read through to the end to see how US Cloud can support your team’s efforts to make a comeback for next quarter’s earnings by resolving your Microsoft support issues—AND how much you already may be paying for that support.

The swath of insurance companies with missed earnings has prompted a renewed search for cost management in the face of continually changing insurance industry conditions. This year, insurance companies experienced a wide variety of issues that impacted their bottom line. These factors include:

• Challenges in the Medicaid sector
• Higher utilization costs
• Increased operating expenses

These circumstances (among others) have noticeably decreased insurer’s profitability this year. And it’s not just for one variety of insurance—this hit to Q3 earnings transcends life insurance, vehicle insurance, life insurance, and health insurance. See the list below to find out how Q3 went for some of these institutions.

• UnitedHealth Group (UNH)
  In their Q3 call, UHC reported a projected 2025 performance below Wall Street expectations by about $1 per share.
• MetLife (MET)
  Their reported earnings for Q3 missed the Zacks Consensus Estimate by 10.7% due to their adjusted operating earnings for this period of $1.93 per share.
• State Farm (STFGX)
  Even though State Farm is not a public company, this company reported underwriting losses in both homeowners and auto insurance for 2023, which almost certainly carried into 2024 (it hasn’t exactly been a light year for that kind of thing).
• Co-Operators General Insurance Company (CCS-C)
  Co-operators General Insurance Company reported a consolidated net loss of $45 million year over year (YoY) for their Q3 quarterly earnings. In Q3 2023, their net loss was only $0.2 million.
• Selective Insurance Group (SIGI)
  The Zacks Consensus Estimate for this company was $1.69 per share, but the company reported Q3 earnings of $1.40 per share, missing the estimate by $0.29 per share.
• Centene Corporation (CNC)
  Despite exceeded earnings expectations, Centene faced challenges with rate issues and a decline in Medicaid enrollment, which more severely affected other insurers.
• Markel Group (MKL)
  At 21% below the Zacks Consensus Estimate, Markel Gorup reported a Q3 net operating earnings of $17.34 per share.
• The Hartford (HIG)
  After their Q3 earnings call reported missed goals, shares dropped by 6%.
• Globe Life (GL)
  Global Live beat earnings goals but missed the mark on revenue ambitions. Falling short of the Zacks Consensus Estimate by 0.52%, they reported their Q3 operating revenues at $1.4 billion.

Q3 2024: Insurance sector faces widespread earnings challenges.

What can insurance companies do if Q3 numbers (or Q4 numbers, for that matter) are less than ideal? Below are a few strategies other companies are utilizing to keep their finances trim without sacrificing quality or services.

CIO and CFO Collaboration

Technology investments are crucial to any company’s survival, progress, and growth. Therefore, many companies are cultivating a direct collaboration between Chief Financial Officers (CFOs) and Chief Information Officers (CIOs).

Not only does this high-level partnership help teams evaluate the return on investment (ROI) on necessary technology initiatives, it also helps leadership find space for the innovations that matter.

Ask US Cloud for Cost-Effective Microsoft Support

US Cloud offers a game-changing alternative to Microsoft Unified Support. When something goes wrong with any tool across your Microsoft suite, you need quick application of industry best practices. As the only third-party provider capable of fully replacing Microsoft Premier/Unified Support, that’s where we come in.

Cost-effective tech support: An alternative approach to traditional Microsoft enterprise services.

Due to the nature of legacy systems and compliance requirements in the insurance world, most companies in this industry opt for Microsoft products. Wherever Microsoft goes, the need for support will necessarily follow. That goes for any type of software—problems happen!

Enterprises need a team behind them to eliminate these Microsoft issues. Without that support, even small incidents can become obstacles to operational efficiency. Insurance companies that haven’t considered how team optimization is just as central to serving customers might need to take a closer look. Increasing operational efficiency allows insurance companies to move the needle on cost control and profitability.

Our team of experts offers businesses several ways to ensure that their Microsoft tools work for them, not against them. Below are some the ideas about what you can expect from service through US Cloud.

• Significant Cost Savings
  Reduce your annual Microsoft support expenses by 30-50%. Depending on your average spend, you could be saving millions of dollars. For insurance companies facing earnings pressures, this could be a reasonable solution.
• Brisk Response Times
  Tickets of all severities have a guaranteed 15-minute response time through US Cloud. This rapid solution generation outpaces traditional support models in the interest of minimizing your downtime and maximizing your company’s productivity.
• Exceptional Expertise
  US Cloud’s team of domestic engineers boasts an average of 15+ years of Microsoft support experience. This noteworthy service quality guarantees you support that matches or exceeds Microsoft’s own offerings.
• Flexible Contract Terms
  US Cloud provides adaptable support contracts that evolve alongside your business needs, accommodating more agile financial management on your end.
• Comprehensive Coverage
  Streamline IT operations and enhance overall efficiency: experts at US Cloud support all Microsoft software and cloud services, providing a unified support experience.
• Increased IT Availability
  If your IT team is frequently tied up with Microsoft concerns before attending to other technological initiatives, then US Cloud’s service is the right choice for you. Not only does your team gain access to support from United States-based Microsoft specialists, but your IT team can also use their time for the projects that increase company progress and profitability.

Support cost increases from Microsoft United are consistently on the rise, with some companies citing what appears to be an increase by 50% or more. This trend doesn’t show any signs of stopping: the cost for Microsoft services could increase by as much as 97% by 2027.

With third-party support from US Cloud, you can maintain the same level of service and support without managing the steep price increases on Microsoft Unified Support. In other words, you can have the same level of service for a 30-50% lower price. Collectively, that’s a calculated savings of $5 billion through 2027.

Reactive M365 and Azure Support

When things go wrong, you can count on US Cloud for efficient solutions. This matters because faster fixes for your Microsoft problems means that your team is back on track sooner.

This is still important if you already have an internal IT team: US Cloud’s service can free up valuable time for your existing IT department. Not only would your team save money on the cost for support, but IT members also enjoy a boost in availability to solve your team’s custom IT issues.

Insurance carriers seek Microsoft support alternatives amid rising costs.

Proactive Microsoft Support

If your team can stop problems from happening in the first place, then significant amounts of time can be saved on fixing those problems. Proactive support through US Cloud can help you encourage a healthy Microsoft environment bereft of time-exhausting issues.

For example, several insurance companies are stepping into the Microsoft Azure environment and machine learning to enhance fraud detection, customer service, and operational efficiency. However, a bulky Azure environment costs more to maintain. US Cloud’s Azure Excellence bundle helps clients ensure that their accounts are sized (and, therefore, priced) correctly. This cloud optimization also affords teams a more optimized user experience.

In just one year, over 30 financial institutions (including a selection of insurance companies) switched from Microsoft Unified to US Cloud. The sizes of these companies ranged from mid-sized institutions to Fortune 500-sized enterprises. All companies were looking for ways to compensate for or recover from extremely high IT costs that were impacting profitability. They also needed Microsoft support that accommodated their complex Microsoft licensing and configurations.

After choosing US Cloud as the industry’s only full replacement for Microsoft Unified, these companies saved 30-50% of the costs they had been spending on Microsoft support. For one company, that was a savings of $1,125,000 in the first year alone.

Insurance carriers' path to recovery: From Q3 earnings dip to projected growth.

Insurance carriers are in the business of helping people develop contingency plans for when things go wrong. US Cloud is your company’s insurance against operational issues with Microsoft suite products. We see where you’re coming from, and we’re here to help.

Partner with US Cloud today to come back from missed Q3 earnings (and beyond—we can help you year-round!). To start paying less to keep your team on track in spite of Microsoft incidents, contact us today!

How can insurance companies cut operating costs?

Among many other strategies, one option for insurance carriers is to evaluate the operational efficiency of the company’s internal teams. That’s where US Cloud can help: for 30-50% less than Microsoft Unified Support, you can eliminate Microsoft incidents as time-exhausting occurrences. When your team is optimized for productivity, more can be achieved with the same amount of time and resources.

How can US Cloud support insurance carriers?

Since large companies often tend toward Microsoft suite due to compliance and legacy concerns, it is only logical that such institutions would need support to keep that software running in spite of any unforeseen issues. US Cloud is built to keep your team collaborating effectively regardless of any Microsoft incidents that pop up.

Can US Cloud still help an insurance carrier save money if the company already has an IT team?

Yes. In fact, it is an ideal situation for a large company to have their own IT team as well as cost-effective Microsoft support from US Cloud. With this configuration, companies can enjoy a more available IT team alongside expert support from technical professionals who specialize in Microsoft products.

What is third-party Microsoft support and how does it differ from direct Microsoft support?

Third-party Microsoft support refers to services offered through external IT firms that specialize in managing and troubleshooting Microsoft products and services. This support configuration can offer more personalized and cost-effective solutions than Microsoft’s direct support.

How can third-party support reduce costs for an insurance company?

Outsourcing Microsoft support means that insurance companies may be able to avoid the high costs of hiring even more full-time IT staff, reduce downtime, and improve system efficiency. Together, these efforts ultimately lower operational expenses.

Is third-party Microsoft support safe for an insurance company?

Yes, third-party support providers must adhere to strict security protocols and compliance standards, especially in regulated industries like insurance. US Cloud, for example, makes a concerted effort to ensure that sensitive customer data is protected.

Can third-party Microsoft support help with data security and compliance?

Absolutely. A reputable third-party support provider will have expertise in managing security updates, ensuring compliance with industry regulations (e.g., GDPR, HIPAA), and providing solutions that help mitigate cybersecurity risks.

How quickly can an insurance company see cost reductions after implementing third-party Microsoft support?

Cost reductions can be seen almost immediately in areas such as streamlined workflows and optimized software use. However, significant long-term savings will be generated over time as processes are fully optimized and technology is leveraged more efficiently.