On-premise vs cloud AI for insurance agencies: which should you pick?
Choose by the workflow and data flow, not the label alone. A desktop AI app may still send information to cloud models. A cloud app may use a browser session on your computer. Ask where client documents, credentials, model requests, and task history are processed, then decide whether the arrangement fits your agency's requirements.
| Question | Local or self-hosted system | Hosted or hybrid system |
|---|---|---|
| Where does the work run? | Confirm whether both the application and model run locally. | Identify which parts run on the device and which services receive data. |
| Who maintains it? | Your team or IT provider manages updates, capacity, backups, and recovery. | Responsibilities are shared between the vendor, AI providers, and your device or IT team. |
| Who can access information? | Local hosting still needs user permissions and device security. | Check account roles, service access, subprocessors, and revocation. |
| How are incidents handled? | Name an owner for failures, recovery, and updates. | Ask for the support process and the responsibilities of each provider. |
| How will you evaluate it? | Run representative agency work on the intended setup. | Run the same work and review the results, data flow, and operating cost. |
The longer version
Start with one task and follow a piece of information through it. If you upload a dec page, where is the original stored, what reaches the AI provider, and where does the generated document live? For a carrier task, identify where the browser session and login credentials are held. These answers are more useful than a general claim that a product is local or secure.
Ask for the current terms covering training use, retention, deletion, access, incident response, and subprocessors. Check how those terms apply to the exact product and plan you will use. A paid plan, a desktop installer, or an encryption label does not answer all of those questions.
Relay Workbench combines a desktop browser runtime with connected cloud services and AI providers. Browser credentials use the operating system's credential storage. Client task content may be processed by connected services, so Relay is not presented as a fully on-premise or offline product. Review the current security page and the configuration for your agency.
Compare the operating cost as well as the subscription. Include setup, updates, support, recovery, model usage, and the time someone spends checking results. Pick an arrangement your agency can operate confidently after the first demonstration.
Common questions
Does installing an app mean my data stays on my computer?
No. A desktop application may call cloud models or other services. Ask for the data flow of the specific task and configuration.
Is cloud AI automatically less suitable for insurance work?
Suitability depends on your obligations, contracts, data, and the provider's controls. Have the appropriate people in your agency review the actual arrangement.
Is Relay fully on-premise?
No. It combines a desktop browser runtime with connected cloud services and AI providers. Confirm the applicable data handling and access before using it with client information.
What should I ask before starting?
Where data is processed and stored, what each provider can access, whether it is used for training, how long it is retained, how access is revoked, and who handles support and incidents.
Related questions
Source notes
Sources checked 2026-09-05. Product details can change.
Part of the Relay straight answers library. Updated 2026-07-11. See how we source content.
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