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Insurance Software Development: Technologies Revolutionizing the Business 

Oleksandr Nesterenko

In the era of digitalization the insurance industry does not stay aside. On the contrary, it drives innovations, adopts new technologies fast, and invests in insurance software solutions to improve operational efficiency, make data-driven decisions, boost revenue and provide the best customer service. 

Custom software for insurance organizations can provide numerous benefits and huge competitive advantages. However, it is still hard for business owners to decide what software to develop, what features to add, and how to make that software the most effective for handling numerous insurance processes.

So today we decided to dedicate this post to custom software for insurance business, and share with you all our development knowledge and tips. They can really help you save a lot of time and nerves if you are going to be involved in software development. With that being said, let’s proceed to our interesting business topic right now. 

Processes that insurance software can improve 

The Global Insurance report provided by McKinsey states that investments in insurance technologies keep growing. For example, in 2004 companies invested only $1 billion, in 2019 – $7.2 billion, and in 2021 – $14.6 billion in digital innovations called insurtech. And  more than 40% of those innovations are focused on marketing and distribution operations. 

This tendency proves that insurance companies turn in highly technological and digital businesses, and this happens definitely for good reasons. Custom software automates day to day operations, improved risk management, document management, and can even reduce operational costs. 

So when you invest in development of your own solution, you get a highly customizable and adaptive digital helper that not only works for the good of your company but also pays itself off with time and adds value to your business. 

By using insurance software companies can achieve incredible growth and get competitive advantage on the insurance market. Let’s just take a look at the processes that can be easily streamlined and improved thanks to a custom insurance software solution.


Operational efficiency
custom software can empower your insurance agents to process, review and manage more claims, and do it more effectively. By having digital tools, your employees can save a lot of time they previously spent on routine processes. On top of that, all necessary information about clients, invoices or else will be stored in one safe place where your agents with necessary permissions can find and access it in no time.
Effective and frequent communication
your insurance software may have live chat, built-in messenger, or community forum that will make communication between agents and clients easier. You can provide consultations, apply new marketing strategies and get more clients if you keep communication channels open.
Data storing and using
many insurance agencies still use multiple tools for business and keep their data in different places. But with multifunctional custom insurance software you can forget about this inefficient approach and start using your data to the fullest for reporting and analytics. To grow you need to drive strategy changes, and it’s impossible to do this if you don’t use all your data properly.
Automated low-value processes
many insurance specialists spend a lot of time on work with documentation, and sometimes they are too overloaded with tasks. That’s when they start making mistakes, provide inferior customer service and get tired fast. But delegate some routine operations to a software, and see how your employees get more proactive and inspired to serve new clients.
Instant fraud detection
without a built-in fraud detection algorithm it may be hard to identify fraudulent claims at once and don’t spend time on its further management. And by introducing fraud detection, you can find and sort suspicious cases or identify unusual user behavior very fast.
Personalized sales approach
insurance solutions are able to perform holistic real-time analysis of client data and provide you with a portrait of your common customers including their preferences, demand and prices acceptable for them. By having all that information at your hands, you can adjust sales approach, advertising campaigns, customer service and see your business get more income and loyal clients.

Top 7 solutions for insurance industry 

Sooner or later every insurance company starts to think about getting new digital tools. However, the market has too many options to offer and many business owners tend to be confused and cannot decide which one of the best insurance software solutions would be a perfect fit for their company. 

Therefore, to help you out and make this tough choice easier, we decided to share a list of the most useful software you may need and describe what processes you can automate thanks to those tools.

Client portal

This solution can become a part of holistic agency management system where all customer data and information about your services will be stored. Client portal allows customers to register, access your internal knowledge base, request support, or use an internal forum to find answers to all questions. Thanks to this solution you can provide new self-service options and introduce your loyalty program.  

Claims management system

Claims management is a must for companies that strive to optimize the work of insurance agents, automate analysis of customer data, easily identify fraudulent claims and improve overall customer service. Digital system can easily collect all data about the claim, match it with underlying policy and coverages, and let your agents evaluate all circumstances properly. 

Document management software 

These days it is highly inefficient to keep doing paperwork or save all information of your insurance agency in separate digital documents. It is better to get a document management solution where all forms, questionnaires, PDF files, and even video files will be safely stored and easy to find using different filters. 

ERP and CRM systems

For every business customer experience means a lot, and insurance is not an exception. By using CRM or ERP you can improve lead generation, manage your teams and customers, control all the data, and even use it for holistic analysis. 

Policy management software 

All agencies can use policy management tools to perform end-to-end management of insurance policies, create, implement or change them effortlessly. Such a solution eliminates possibilities of human mistakes, protects your user and company data and minimizes many risks. 

Risks management solution

Insurance companies often have to take care of risk management and it is more effective to do it using software. Client cases may differ and usually it takes time and attention to assess all risks individually. However, not if you use AI-based risk management tools able to perform risk assessments for different cases and set the right insurance rate for each one of them. 

Insurance management app

This can be a complex multifunctional solution that your company can use to perform client management, check productivity and performance rate of every insurance broker, use digital documentation, perform online billing and invoicing, create loyalty programs and many more. The main advantage of this software is that it can be custom and fully adapted to your particular business processes that no other ready-made software can do. 

5 things to consider before choosing the software

Chances are that by now you’re trying to choose between purchase of ready-made solution and custom software development. Maybe you even Googled several popular solutions and found them more than just interesting. 

Well, don’t rush into making any decisions just yet, because we are about to share with you some crucial aspects of proper software selection. Let’s dispel all your doubts now. 

#1 Cloud-based or on-premise?

When choosing insurance applications many business owners can’t decide if they need a cloud-based or on-premise one. After all, cloud migration can be an expensive process that requires some time. But it is definitely worth it. 

Based on our experience, we can say that for your program administrators it will be easier to update your insurance solution with time if it is cloud based. It will not affect the work of your agents or you, plus the information will be well protected which is definitely a plus. 

#2 Custom-made or ready-made?

Many software vendors offer quite decent ready-made solutions for insurance companies. However, in most cases those solutions tend to lack customization and require a quite costly subscription. So in the end they may turn out to be not so convenient for growing companies. 

In case of insurance software development, you can be sure that the solution will be tailored to meet all your needs and it will have a wide variety of necessary options. Moreover, that software can scale up and change together with your company, that is very convenient. 

#3 What about integration possibilities?

When you buy or build an insurance software it is better to make sure that it can be easily integrated with your existing software and services. In such a way you will be able to create a truly smart business environment and make the most out of it. Also pay attention that many ready-made solutions have some limitations and probably you will not be able to integrate them with this or that solution you already use.  

#4 Narrow or wide functionality? 

The answer to this question depends on your long-term goals and solutions you currently use. For example, if you already have reliable billing software and CRM, you probably do not need to incorporate their options in a new solution. So it can have more narrow functionality and target one or several specific processes you are trying to automate. 

Or let’s take another case, your agency has a solution that locks too many options. In this situation it would be more reasonable to invest in a holistic platform with wider functionality. 

#5 Modernize an existing solution or get a new one?

Some insurance companies are quite satisfied with their current digital helpers but feel that they are not modern enough, that something can be actually improved. And this can be done easily and with less expenses. 

You can hire a software development team to modernize your insurance platform, spice it up with advanced technologies, broaden its functionality or just move it to the cloud. Whatever improvement you require, great software agencies like Altamira can easily implement. 

Most useful options of insurance software solutions 

Insurance software development is quite a costly and time consuming venture, so we always recommend business owners to get prepared for it. And the most important thing you should actually prepare are your expectations from insurance software and desired feature set. 

Of course our specialists will always help you with writing technical documentation, setting right goals and success metrics. But to begin with, we should know what exactly you’d like to be present in your insurance app. The most popular and useful features we’d recommend you to pay attention to would be the following: 


Document management
this option as well as claims management is a real must-have. Let your insurance agents benefit from seamless work with all papers, input all the data faster and without any mistakes. And see how the level of employee and customer satisfaction increases.
Digital forms
all your new and existing clients can make use of convenient digital forms and spend less time on filling in all the information. Also digital forms may let them attach pictures and videos, submit claims using mobile devices, and manage all changes on the go.
Digital signature
thanks to this feature signing insurance documentation becomes easier than ever. On top of that, the security level of digital signatures is pretty high since private passwords are used.
Reporting
advanced reporting powered up by machine learning and artificial intelligence may turn your insurance business to a whole new level. You can easily get performance overview, business overview, claims counts reports, and analyze your income, losses, annual metrics and many more.
Invoicing
by using a software with invoicing option you can create, check, and send all invoices, process your  insurance payments and have total control over customer billing information.
Live chat or support option
to make sure that your customers can always ask questions and get support from your team of insurance brokers, we’d recommend you to implement a live chat option on your website or client portal. It improves communication with clients and lets you understand their needs and doubts better.

Modern technologies that insurance business should embrace

The world of technologies does not stand still, so in 2022 it is not enough to build feature-rich insurance software systems. Corporate solutions should have a little bit of extra, they should be more smart and even futuristic. 

Since we are experts in insurance software development, and have already delivered high-tech solutions for insurance business, we want to share with you the hottest tech trends to embrace in the upcoming years. 


ML and AI for analytics
with the help of artificial intelligence and machine learning it becomes easy to track customer behavior and claims, and analyze meaningful risk insights for better decision making.
Mobility for convenience
it is hard to imagine clients without mobile devices and insurance applications. Mobility is a go-to option when it comes to more effective and convenient task management and broker-client communication.
Chatbots for better service
customer management can become way faster and qualified if you let chatbots answer an influx of common questions and free a lot of time for your employees to complete more important tasks.
Big Data for better decision making
Big Data is a must for all insurance companies since it is capable to perform in-depth study of competitors, provide insights for deeper understanding of needs of your target clients, process huge piles of data and generate results that can be used for further decision making in your insurance company.
IoT for smarter business
this is a cutting edge technology that is applied in many industries including insurance. According to McKinsey research, IoT can be used in insurance business to generate additional revenue and cut costs of insurers. Take a look at this picture describing the use of IoT:

Our software development services for insurance companies 

Altamira team builds custom insurance software solutions powered up by a cutting edge technology of your choice shall it be IoT, artificial intelligence, machine learning or Big Data. 

We follow regulatory compliance, write clean code, provide well-organized project management, and guarantee personalized approach, deep involvement into your business sphere, its challenges and specificities.

Together with our team you can delve into insurance software development and make this experience a pleasant one. The list of the solutions that we build includes but not limited to: 

  • claims management software;
  • complete solution for workflow automation;
  • document management software;
  • CRM and ERP systems;
  • policy management solutions;
  • quoting software;
  • customer portals;
  • cloud-based and AI powered software.

 

Apart from our huge experience and wide skill set, you can benefit from different cooperation models our team offers. You can outsource the whole insurance software development to us, you can extend your team with our specialists, or you can hire us as your dedicated team. Whatever option you choose, you can be sure that it will be easy to cooperate with our software engineers, project managers, QA specialists and business analysts. 

We value effective communication, so you can be sure that you will receive all updates about the work project. On top of that, all deadlines will be preserved and your solution will be built and released exactly when you need it. Plus we can help you with further software maintenance and improvements based on real users feedback. 

FAQ

The term insurtech implies the combination of insurance, technologies and digital tools that are used to improve key processes, operational efficiency, customer experience and many more. Also insurtech implies active use of advanced technologies such as AI, ML, Big Data and IoT to transform the way company works and boost productivity and income. 
The starting price of custom software for insurance companies may vary depending on the type of the solution you are going to build. In general, the monthly check of the development team may be up to $50,000. And insurance software development usually takes 3-6 months. The cost depends on team composition, software complexity, and integrations. 
Every insurance system should definitely follow regulatory compliance, and its feature set should be adapted to your particular business processes to make them more effective. One more crucial thing is security, because no matter how functional your app is, if it is not secure you can have major troubles in the future. 

To summarize

Insurance software development can grant you incredible competitive advantage and help you expand your client base. With the right solutions at your disposal you can change the way you work and provide services. Optimize routine processes, minimize human errors, provide instant 24/7 automated support and see how loyalty and satisfaction of your clients grow. 

Although it requires solid investments and at least three months of time, custom software development for insurance business is really a game changer. In the upcoming years more and more companies will invest in insurtech and current software modernization. So why wait till your competitors do it when you can outpace them and start getting your business benefits early on? 

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