Web-based insurance software development peaked during the pandemic as many traditional insurers feared losing their business. However, each crisis should also be viewed as an even an opportunity for innovative companies. The global insurance industry is changing, and customers demand fast and secure digital services with flawless user experience.
Like most other market sectors, insurance companies also suffered financially. Still, more and more customers now embrace digital services and are often even more willing to sign contracts again because of the highly needed sense of security protection in uncertain times.
Working in a bespoke software development company that has been a reliable partner to several online insurance companies, I know that this is a highly relevant sector that is currently undergoing massive digital transformation. With most insurance providers introducing digital services and new players offering entirely online service delivery, the new normal in this business domain seems to heavily depend on insurance software development.
Plus, among the most popular insurance trends are the emerging InsurTechs. They are startups that focus on merging traditional insurance with technologies such as Artificial Intelligence (AI), Deep Learning and advanced data analytics to provide next-generation and often digital-only insurance.
It seems that technology is and will remain the centre of attention in the years to come, so we’d better demystify insurance software development right now. This article provides the essentials you should keep in mind.
The Digitalisation of Insurance
Digitisation is changing the way we see the world, how we work together, how we analyse and overcome daily challenges. Nowadays, digital services cover every area of life, whether private or professional and insurance makes no exception. For many years, the digitisation of traditional insurance companies was a topic that was only insufficiently understood as a viable business opportunity. Recently, that is gradually beginning to change. Today, the digital transformation has long since reached insurers, underwriters, intermediaries, pools and sales within the insurance sector.
In a 2021 German study about the digitalisation of insurance, most companies name more efficient and optimised processes as well as operational cost reductions as the greatest advantages of digitisation. Customer-related benefits such as a better customer experience or acquiring new customers come as secondary but also important arguments. Currently, insurers are well prepared to meet the main customer expectations of digital claims reporting, online processing and web contract management. However, future trends reveal that insurers want to invest more technical resources in creating a seamless customer journey.
Technologies With The Greatest Impact on Insurance
There are certain software technologies that have a high impact on the entire insurance and some even say that they shape the sector’s future. For example, Robotic Process Automation (RPA), AI, Machine Learning (ML), and the Internet of Things (IoT) rank as top priority technologies among insurance software development engineers. But how do these software technologies impact insurance companies exactly?
On the one hand, today’s AI software solutions are so advanced that they can support and significantly shorten repetitive insurance processes such as damage detection, risk analysis, claim processing, underwriting, etc. On the other hand, IoT and especially the industrial type, bears the tremendous potential to provoke real market innovations. For example, the IoT is giving rise to new business models such as Pay-Per-Use (e.g. apartments, car rentals, machinery, etc.). Similarly, automotive leaders such as Mercedes already offer Pay-As-You-Drive where customers take advantage of lower insurance rates depending on how long they drive their vehicles.
What can Insurance Software Development Offer?
Depending on the are your insurance company operates, the possibilities to invest in software solutions can vary significantly. An experienced company offering insurance software development services can consult you on your business needs and help your streamline your product vision according to your specific requirements. The use cases of such services, depending on the insurance niche your company is in or is currently entering, can be P2P (Peer-to-Peer) insurance solutions, claims management systems, client portals with engaging UI (User Interface) and UX (User Experience), documentation management solutions, AI processing and so many more.
Partnering with experienced software developers with proven field expertise in insurance is among the most important criteria to consider. Before signing your contract with your future software development vendor, ask about previous domain experience, success stories and past projects. Also, if possible, read reviews from clients so that you can get a picture of what to expect from your prospective tech partners. Last but not least, think about whether the vendors you’re interested in can share their software development methodology (e.g. Scrum), scalability preparations, security policies as well as standard ISO certifications for work quality.
Business Benefits from Insurance Software Development
Insurance software development services can offer numerous advantages to your business. You know that customers are at the centre of each business, so customer satisfaction in the insurance sector is one of the crucial factors for staying ahead of the competition. Investing in insurance software that is user-friendly, easy to use and with intuitive UI/UX allows you to provide a more personalised customer journey and, as a result, increase customer satisfaction.
Depending on the ROI after your initial investment in web-based insurance software development, you can also expect greater business efficiency and lower operating costs in the long run. This is due to the fact that advanced software technologies are equipped with powerful algorithms that can handle massive amounts of data faster than any human being.
Therefore, in the context of insurance, where both time and precision of processing is of the essence, software solutions help your employees minimise errors and reach higher productivity levels. Finally, when your insurance company provides digital service offerings, you can reach new younger audiences such as Millennials or digitally native Gen Zs (who in 10 years will be 20-30% of the workforce) that are already active professionally and look for attractive insurance policies and deals.
Author Biography Aleksandrina Vasileva
Aleksandrina is a Content Creator at Dreamix, a custom software development company, and is keen on innovative technological solutions with a positive impact on our world. Her teaching background mixed with interests in psychology drives her to share knowledge. She is an avid reader and enthusiastic blogger, always looking for the next inspiration.