Building a secure foundation for AI-driven insurance analytics

  • $500K Annual investment
  • 80% Potential maintenance savings
  • $1M Potential infrastructure savings
Aperçu

One of the oldest auto insurers in the United States partnered with Teradata and AWS to modernize its enterprise analytics platform and establish a scalable foundation for innovation. By migrating to Teradata VantageCloud Enterprise on AWS, the insurer created a secure, compliant, and high-performance analytics environment purpose-built for the regulated insurance industry. 

This joint solution combines Teradata’s advanced analytics capabilities—such as complex workload management and Bring Your Own Model (BYOM)—with the elasticity and security of AWS. The result is a cloud-native architecture that enables advanced AI and machine learning use cases while maintaining strict compliance with SOC 2 Type II and PCI-DSS requirements.

Défi

Modernizing analytics to enable digital growth—without compromising compliance

Known for its commitment to customer service excellence, the insurer set a strategic goal to enhance its digital offerings and improve customer experiences through advanced analytics, AI, and machine learning. However, achieving this vision required overcoming several challenges:

  • Legacy on-premises analytics infrastructure that limited scalability and innovation
  • Strict regulatory and compliance requirements governing insurance data
  • Data silos and slow analytics workflows that delayed insights and timetomarket
  • The need to operationalize AI/ML models without introducing costly data movement or security risks

The organization needed a modern analytics platform that could support enterprise-scale analytics today while enabling next-generation AI capabilities for the future. 

Auto Insurer Modernization
Solution

A secure, scalable analytics platform built for regulated innovation

The insurer implemented a hybrid cloud analytics architecture built on a joint Teradata and AWS solution, designed to modernize its on-premises corporate network while meeting regulatory requirements. 

The solution leverages Teradata’s compliance certifications and AWS’s secure infrastructure to align with state insurance regulations, SOC 2 Type II, and PCI-DSS standards. Key architectural elements include: 

  • AWS Direct Connect to securely link the on-premises data center to AWS while keeping data traffic off the public internet
  • AWS PrivateLink to enable secure access to analytics tools without exposing endpoints publicly
  • Fully isolated AWS VPCs and private subnets for all analytics workloads

The primary dataflow begins in the on-premises environment, where SQL Server and DataStage ETL tools feed data into an AWS Data Lake account via Direct Connect. This account serves as a centralized data hub and includes: 

  • A Shared Services VPC hosting Teradata Data Mover and other ETL tools
  • Amazon S3 buckets for data staging and processing
  • An AWS Transit Gateway to manage secure routing between on-premises systems, shared services, and analytics environments

At the core of the solution is the Teradata Vantage® platform deployed on AWS, supporting both production (PRD) and development (DEV) environments. Teradata Vantage® runs natively on AWS, with: 

  • AWS Load Balancers providing high availability for user access
  • Native integration with Amazon S3 for primary backups
  • Secure access for business users through Power BI Services via AWS PrivateLink

Beyond migration, the platform establishes a foundation for AI-driven innovation. By leveraging Teradata BYOM and open table format, the insurer integrates its data warehouse with Amazon SageMaker AI. 

This approach allows data scientists to train models in SageMaker and execute them directly inside Teradata Vantage®—eliminating slow, costly data extraction. One planned use case includes a quote abandonment model that scores prospect behavior in real time and triggers personalized re-engagement campaigns for high-intent users.


AWS Teradata Cloud Architecture
Résultat

Measurable business impact with a foundation for continuous innovation

The migration to Teradata VantageCloud on AWS delivered measurable business and operational benefits while positioning the insurer for long-term innovation. 

The partnership directly supports the insurer’s strategic goals, including

  • Improved cross-selling opportunities
  • Faster claims resolution times
  • Higher customer satisfaction
  • Accelerated time to market for new AI-driven solutions

While specific total cost of ownership figures remain confidential, the insurer’s annual investment of approximately $500K delivers enterprise-scale value well beyond its cost. By moving to Teradata VantageCloud on AWS, the company:

  • Avoided capital expenses tied to hardware refresh cycles
  • Reduced operational overhead from data center management
  • Gained elastic compute scaling aligned with business demand

Industry benchmarks show cloud migrations can eliminate 70% to 80% of traditional maintenance overhead, with documented savings ranging from $250K per quarter to over $1M annually by retiring legacy infrastructure. 

The joint Teradata–AWS solution enables:

  • Centralized, unified data architecture: Consolidation of data from multiple sources into a single, governed analytics platform, ensuring consistent insights across the enterprise
  • Operational efficiency and scalability: Secure, elastic scaling through AWS infrastructure combined with Teradata’s advanced analytics engine reduces management overhead and optimizes resource usage
  • Improved business performance: Faster time-to-insight, improved profitability, and better member solutions driven by data-informed decision-making

The migration was completed on schedule, validating the overall strategy and execution. Key takeaways include:

  • Treat authentication services as mission-critical: Early LDAP connectivity issues reinforced the need for comprehensive pre-cutover validation of all ancillary services in regulated environments
  • Proactive resource monitoring is essential: Initial spool space constraints highlighted the importance of integrating cloud-native monitoring tools, such as Amazon CloudWatch, immediately post-migration to enable proactive scaling and ensure uninterrupted reporting

By migrating to Teradata VantageCloud on AWS, this insurer transformed its analytics environment into a secure, scalable, and future-ready platform. The joint Teradata–AWS solution not only delivers immediate operational and business benefits but also empowers the organization to confidently innovate with AI and machine learning—without compromising compliance or performance.

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