Insurance software development involves designing, creating, and maintaining software applications and systems specifically tailored for the insurance industry.
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Those days are long gone when people spend hours filling out clunky forms and waiting for days to get their insurance quotes. The power of software has completely changed from clunky to clicky in the insurance industry. There is a huge demand for frictionless and data-rich experiences which the outdated system cannot provide due to the inefficiency and inflexibility it faces. This is where insurance software comes in as a solution offering a platform to streamline and automate various tasks in the insurance industry.
This guide is for insurance companies and businesses looking to build robust software. It helps you explore everything you need about insurance software development such as the technical aspects of developing insurance software, its major types, core features and functionalities, and much more. Ready to dive in? Let’s get started.
Insurance software is a custom-built software or digital tool that helps insurance companies with activities such as administering, underwriting, and processing insurance claims and premiums. Such software uses high-end tools and technologies to facilitate automated workflows, simple claim processing, and insurance underwriting.
Insurance software offers convenient and seamless access to insurance services, addressing both administrative tasks and client-facing insurance operations. It helps businesses simplify various internal business processes as well as connect well with customers which is seen as more important in industries like insurance. This ultimately drives business growth and success.
Insurance software development refers to the process of creating, designing, and maintaining software applications and systems tailored for the insurance industry. These solutions help insurance companies automate and optimize various functions, from policy management and claims processing to customer service and data analysis.
The demand for insurance software development has grown significantly as the industry faces increasing pressure to improve efficiency, drive innovation, and enhance customer experiences. Traditional methods of managing policies, claims, and customer data are no longer sufficient to keep up with rapid technological advancements and the evolving needs of the market. As a result, developing next-generation insurance software has become crucial for businesses looking to enhance client satisfaction, streamline operations, and maintain a competitive edge.
Developing modern insurance software is imperative for businesses wanting to overcome the challenges of outdated insurance systems. For those businesses that seek to be competitive and future-proof, modern insurance software is an investment worth making, and here is why.
Enhanced Operational Efficiency
Traditional insurance processing, such as policy creation, claims handling, etc., is manual and time-consuming. However, modern insurance software has changed this, as businesses can automate these functions and concentrate more on other productive tasks.
Improved Customer Experience
Legacy systems made it difficult for customers to contact insurance providers. They had to wait for hours and yet get only limited information. This software offers self-service portals and mobile apps allowing for faster processing times.
Reduced Errors
Manual processes in older systems were prone to data entry errors, miscalculations, or lost documents. However, this software uses precise algorithms to automatically handle premium calculations and claim assessments.
Robust Data Security
Insurance software has advanced security features to protect sensitive customer data. It ensures all personal details, policy records, and financial information are stored in secured databases to avoid cyberattacks and data theft.
Cost-Effectiveness
Maintaining legacy systems can be costly because they require frequent repairs and updates. Also, errors associated with this method lead to higher costs. Insurance software requires only less maintenance and avoids costly disruptions.
The insurance software development landscape is constantly evolving, with new technologies shaping how insurance companies operate. Below is a detailed process we follow to create custom insurance software.
Before developing insurance software, the first step is understanding the business requirements. It is important to figure out what your business wants to achieve by developing such software. This step helps you do that and also puts a foundation for the development.
Identify the challenge - Define what challenges you are facing whether it is processing claims, managing policies, or improving customer services. Identify what operations or processes from the current system you need to improve.
Find the solution - Figure out how this software solves the challenges and improves the existing system. It would be easy if you knew from first what you expect from the software.
Analyze the current process - Thoroughly analyze your current system and specify all processes you need to improve. Identify which existing systems need replacement and where digital tools can be used to increase efficiency.
Define the target users - Identify who will use your software whether your internal teams, agents, customers, or all of them. This helps you design the software accordingly.
Doing all the above steps will enable you to clearly set goals and outline what essential features the software will have that make a big impact on the business process. In this manner, taking some time to get deep into the needs of your business will enable the rest of the process to flow smoothly, thus ending with a software solution that would really help to solve the problem and give you value from it.
Once you have gathered the requirements, conduct extensive research on the current market trends and competitive products in the insurance sector. By doing so, you can get valuable insights into how to innovate your software and expand your offerings. This helps your product stand out in the market.
Understand the insurance industry trends - Start by understanding the latest industry trends such as what new technologies are being used. Stay updated with new regulations, technologies, and customer demands to reflect on them.
Analyze your competitors - Research the existing insurance software solutions in the market. Analyze what they offer, how popular they are, what makes them so, and all. Look for areas where they fall short and figure out how your software could be made to provide something different than others.
Collect feedback - Contact various insurance agents, brokers, industry experts, and customers to know what they are saying about the existing system. You can get to know what they expect in an insurance software solution and design a system that directly addresses their needs.
Study regulatory requirements - As we all know the insurance industry is highly regulated and the software you are going to develop must comply with all legal standards. So thoroughly look for all the regulatory requirements your software must meet.
Conducting thorough market research is more important if you want your software to stay updated and competitive in the market. If you want help with that, you can approach a top software consulting company that offers all kinds of consultation services, including market research and compliance consulting.
The next step is to choose the right type of insurance software with various types out there. Each addresses different business needs. For example, if you want to improve your client relationship, then CRM-based insurance software is the best choice. On the other hand, for tasks like managing documents or simplifying insurance application processes, there are some other types designed for those purposes.
This software remains an all-in-one solution for insurance companies. It handles various functions and automates day-to-day operations. If you are looking for a comprehensive tool to manage various aspects of insurance services, then this type is most preferred.
If your target audience is mainly claims adjusters, then make filing and submitting claims easy by developing this software. Claims management software helps track all claim details in one place, assign adjusters, and even detect fraudulent claims.
This type of software manages the entire lifecycle of insurance policies. It automates various tasks like generating quotes, calculating premiums, and handling renewals, and cancellations. It serves as a digital hub for customer details, documents, and policy information.
The best solution is CRM software when the main goal has been to improve customer relationships. It makes sure agents stay connected with customers by all means. It integrates various channels to manage interactions with customers and stores customer data to analyze their behavior and offer personalized services.
This software solution is designed specifically to automate the time-consuming underwriting process. It helps accurately determine coverage eligibility, estimate the risks associated with applicants, and calculate how much they must pay for coverage.
There is no rule that you should pick one type of software and stick to that same solution. You can combine various features and functionalities from different software types and design a customized one. But for this, you might need a custom software development company that offers a personalized approach to identify your specific needs and build tailored software solutions.
Now that you have selected the type of software that will suit your business, consider what features and functionalities your software will possess. It is essential to define the features before choosing the technologies. Only when the features are clearly outlined, you can choose the technology stack accordingly.
Because to implement certain features, you may require specific technologies. You cannot afford to lose time at that point. If you have all the required technologies, implementing your desired features will be easy, hence you should identify the features beforehand.
Insurance software's features and functionalities vary based on types and their primary focus. However, some common features should be included across all types of insurance software, which are as follows.
User-friendly Interface
An intuitive interface makes it easy for administrators and customers to navigate the software without any extensive training
Secure authentication
Secure authentication allows only authorized access and helps safeguard sensitive information and customer accounts
Centralized Database
It serves as a centralized system to store and access all information such as customer details, policies, and claims
Document Management
This feature provides necessary tools to upload, store, and organize various documents such as insurance policies, claim forms, and contracts
Integration with Other Tools
If your software has integration capability, then it can be easily integrated with various other third-party tools, systems, and platforms like CRM software, payment gateways, etc. This lets your users acquire your diverse services in one place without having to switch between multiple platforms.
Customer Portal
Customer Portal makes it easy for customers to view their policies, file claims, make payments, check claim statuses, and update their personal information
Web and Mobile Accessibility
This feature helps you cater to users who want to access your services on both desktops and mobile devices anytime, anywhere
Notifications and Alerts
Automated notifications and alerts keep users informed of important updates like policy renewals, claim statuses, or new offers
Search and Filter Options
Advanced search and filter tools help users find specific policies, claims, or customer records they need
Reporting and Analytics
This feature includes dashboards and reporting tools that help track performance and analyze customer behavior to improve your services
Next, you need to choose the right technology stack that includes various programming languages, frameworks, and tools. Technology selection determines how the software would function, be updated, and perform against user demands. Therefore, careful and judicious choices must be made while selecting the right combination of technologies to meet user requirements and industry standards.
| Category | Tech Stack |
| Frontend Development | Languages - HTML, JavaScript, CSS Frameworks - React.js, Angular.js, Vue.js |
| Backend Development | Languages - C#, Node.js, Python, Java Frameworks - Express.js, ASP.Net Core, Django, SpringBoot |
| Database | SQL - MySQL, PostgreSQL NoSQL - MongoDB, Cassandra |
| Cloud Platforms | Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform |
| API Integration | RESTful APIs, GraphQL APIs |
| Authentication | 0Auth 2.0, JSON Web Token (JWT), OpenID Connect |
If you implement artificial intelligence technology, it will automate various tasks that once needed manual handling. Machine learning capabilities can analyze large data sets. This helps assess risks in applicants’ profiles, customize insurance policies, validate claims, and identify fraudulent claims.
If you want to store large volumes of data securely and access them from anywhere, then use cloud computing. Cloud-based insurance software platforms enable teams across different locations to collaborate. It also offers robust backup and disaster recovery solutions. In the case of data loss, you can easily restore them.
We already know that being wearables, IoT devices offer real-time data about customers. For example, sensors in vehicles provide exact accident data, time, and location. Insurers can use this data to offer flexible premiums based on actual happening rather than estimates. IoT also facilitates pay-as-you-drive models to reduce fraudulent claims. You can partner with IoT solution providers who can help you switch from reactive to proactive models.
You adopt RPA in your software to automate most of the same, routine procedures. RPA solutions fast-track the processing of claims as it will extract data from claim forms and validate information as well. They automatically create and renew insurance policies by pulling customer data and verifying documents. RPA bots help agents and underwriters by handling data entry tasks like updating customer records without errors.
Blockchain in insurance operations increases transparency. It is mainly used in creating smart contracts that automate claim processing, insurance policies, and payments once all predefined contract conditions are met. It helps maintain a secure and tamper-proof storage of data. If you are not sure about integrating this technology into your software, then consider consulting with blockchain service providers who can guide you.
Predictive analytics uses historical data and advanced algorithms to predict risks associated with applicants or policies. Based on that prediction, insurers can tailor premiums. It also helps analyze patterns in claims data which in turn flag unusual or suspicious activities. Using this innovative technology, you can even predict which customers are at risk of switching providers and create targeted retention strategies.
When it comes to building insurance software, cybersecurity comes first. Because insurance is a kind of industry that handles vast amounts of personal, financial, and medical data. This will be one of the easiest vulnerabilities to cyber attacks, and as such, effective cybersecurity measures would be required and necessary to ensure this sensitive information would be safe along with the security of the whole system.
Before designing the insurance software, let's understand what UI and UX are. The UI refers to how the software looks. For example, whatever elements it has such as buttons, icons, and menus. Whereas, UX focuses on how smoothly the software works.
The user interface you create must be intuitive as well as functional. As you are going to develop insurance software, your target users must be either insurance agents, customers, or back-office staff. So the design should be simple and clear enough to work with quotes, policies, and claims easily.
To make this step a bit easier, you can first create basic layouts or wireframes that map out the software architecture. This helps you get an idea of what your final outlook will be. Upon those layouts, use various design elements like colors, fonts, etc to give a complete look. Check multiple times whether it works perfectly across various devices and how easy it is to complete tasks.
As we have already chosen programming languages and frameworks that best fit the project requirements, you can get through this step easily. However, you must be able to write clean, efficient, and maintainable code using those programming languages. Coding is essential for both front-end and back-end.
For the front end, use either React or Angular to create code that matches the design you already created. Before proceeding with this step, set up the development environment by configuring the tools, software, and hardware required for coding.
Along with developing a solid backend architecture for your software, you need to create a secure database. It helps manage customer details, claims data, policy details, and other important records. Build a robust server-side system that efficiently handles the logic and databases.
Once the core software is developed, move on to implement APIs and integrate third-party services. But if you are new to developing software, then you might be wondering what they are. APIs otherwise known as Application Programming Interfaces connect your software to other external systems. Integrations help increase the capabilities of your software.
First, you have to figure out what APIs your software needs to connect with. Because there are numerous APIs out there and definitely yours does not require all. Some of the common APIs most insurance software have are payment gateways, communication services, insurance databases, and fraud detection tools.
Once you know what you need, select the service providers who provide you with API keys or tokens. These keys help authenticate your software and access APIs securely. As you have written code that links API to your software, this integration process will go smoothly without any interruptions.
Here is a list of important APIs and third-party integrations that are commonly used in insurance software.
| Category | APIs/Third Party Integrations |
| Policy Management | Duck Creek Policy, Guidewire PolicyCenter |
| Claims Management | ClaimCenter, CCC International Solutions Claims |
| Payment Gateways | Stripe, PayPal, Authorize.Net |
| Customer Support | Zendesk, Salesforce |
| Underwriting | Swiss Re, Verisk, LexisNexis |
Insurance software development demands more regulatory compliance. If you want your software to be successful in the long term, then it must conform to all laws and standards in place. First, you have to know the regulations applied to your software.
These vary from region to region. But some of the common regulations include GDPR, HIPAA, etc. These are data protection laws that state guidelines on the storage and sharing of customers' personal data.
If your software complies with international regulations, then you have no reason to be concerned with legal conflicts, even if you intend to work in different regions. Regulations not only protect your business from legal risks and fines but also give customers trust that whatever you are legally sound. However, these standards keep changing with time, so stay updated on new laws, guidelines, or updates.
At this stage, you might have a functioning version of your insurance software, but it may not be perfect yet. To make it flawless, it requires further testing and refinement. Insurance software involves various personal details and sensitive data. Even a small mistake can lead to data breaches or system failures.
So it is important to ensure the software is free of errors and works perfectly before it goes live. Conducting multiple tests such as functional, performance, security, etc helps fix such issues and make it fully functional as well as secure. Use automated testing tools to check for issues. Also, go through the software manually to detect flaws that automated tools might miss.
Keep in mind that testing is not a one-time process. You need to retest the software until all issues are resolved. But if you do proper testing in the beginning, you can avoid major errors that need costly fixes later on.
This is the last step in the development lifecycle. But before deploying, make sure all previous steps are complete. Set up a secure and reliable server or cloud platform to install your software. But cloud-based deployment is a preferred choice as it offers easy updates and flexibility you require.
If you are just replacing the old system, carefully transfer all the existing data to the new software through data migration. This process helps you avoid data loss or inconsistencies. Once everything is ready, the software can be made live.
Deploying in phases is yet another likable option. This involves rolling out the software to a small group of users before making it available to everyone. This phased approach is called a pilot launch which helps you detect any issues before full deployment.
From our guide on insurance software development, you may have realized that insurance software is more than just a tool. It can completely transform your business. Whether you are just starting or looking to scale your business, investing in this innovative software solution can be your go-to choice.
Developing insurance software independently or with an in-house team can be a complex task filled with challenges. It requires expertise in multiple areas such as design, programming, testing, and more skills that not every individual or team may possess. This is where partnering with an experienced insurance software development company can make all the difference.
There are several approaches to consider for your development needs. A project can either be outsourced to a leading software development company that has the right industry knowledge and technical expertise. Alternatively, your company can recruit experienced software developers who can effectively work in cooperation with your in-house team. However, leveraging the expert is the best choice in terms of quality and terms.
Maticz is a top insurance software development company with a proven track record of offering innovative software solutions for the insurance industry. We have years of expertise in building Fintech and InsurTech products irrespective of complexity and financial scope. Our team of experienced and skilled developers handles every aspect of your project right from initial consultation to final deployment. We develop highly functional insurance software to meet the needs of businesses from various niches. Collaborate with us to modernize your business with custom insurance software solutions.
Those days are long gone when people spend hours filling out clunky forms and waiting for days to get their insurance quotes. The power of software has completely changed from clunky to clicky in the insurance industry. There is a huge demand for frictionless and data-rich experiences which the outdated system cannot provide due to the inefficiency and inflexibility it faces. This is where insurance software comes in as a solution offering a platform to streamline and automate various tasks in the insurance industry.
This guide is for insurance companies and businesses looking to build robust software. It helps you explore everything you need about insurance software development such as the technical aspects of developing insurance software, its major types, core features and functionalities, and much more. Ready to dive in? Let’s get started.
Insurance software is a custom-built software or digital tool that helps insurance companies with activities such as administering, underwriting, and processing insurance claims and premiums. Such software uses high-end tools and technologies to facilitate automated workflows, simple claim processing, and insurance underwriting.
Insurance software offers convenient and seamless access to insurance services, addressing both administrative tasks and client-facing insurance operations. It helps businesses simplify various internal business processes as well as connect well with customers which is seen as more important in industries like insurance. This ultimately drives business growth and success.
Insurance software development refers to the process of creating, designing, and maintaining software applications and systems tailored for the insurance industry. These solutions help insurance companies automate and optimize various functions, from policy management and claims processing to customer service and data analysis.
The demand for insurance software development has grown significantly as the industry faces increasing pressure to improve efficiency, drive innovation, and enhance customer experiences. Traditional methods of managing policies, claims, and customer data are no longer sufficient to keep up with rapid technological advancements and the evolving needs of the market. As a result, developing next-generation insurance software has become crucial for businesses looking to enhance client satisfaction, streamline operations, and maintain a competitive edge.
Developing modern insurance software is imperative for businesses wanting to overcome the challenges of outdated insurance systems. For those businesses that seek to be competitive and future-proof, modern insurance software is an investment worth making, and here is why.
Enhanced Operational Efficiency
Traditional insurance processing, such as policy creation, claims handling, etc., is manual and time-consuming. However, modern insurance software has changed this, as businesses can automate these functions and concentrate more on other productive tasks.
Improved Customer Experience
Legacy systems made it difficult for customers to contact insurance providers. They had to wait for hours and yet get only limited information. This software offers self-service portals and mobile apps allowing for faster processing times.
Reduced Errors
Manual processes in older systems were prone to data entry errors, miscalculations, or lost documents. However, this software uses precise algorithms to automatically handle premium calculations and claim assessments.
Robust Data Security
Insurance software has advanced security features to protect sensitive customer data. It ensures all personal details, policy records, and financial information are stored in secured databases to avoid cyberattacks and data theft.
Cost-Effectiveness
Maintaining legacy systems can be costly because they require frequent repairs and updates. Also, errors associated with this method lead to higher costs. Insurance software requires only less maintenance and avoids costly disruptions.
The insurance software development landscape is constantly evolving, with new technologies shaping how insurance companies operate. Below is a detailed process we follow to create custom insurance software.
Before developing insurance software, the first step is understanding the business requirements. It is important to figure out what your business wants to achieve by developing such software. This step helps you do that and also puts a foundation for the development.
Identify the challenge - Define what challenges you are facing whether it is processing claims, managing policies, or improving customer services. Identify what operations or processes from the current system you need to improve.
Find the solution - Figure out how this software solves the challenges and improves the existing system. It would be easy if you knew from first what you expect from the software.
Analyze the current process - Thoroughly analyze your current system and specify all processes you need to improve. Identify which existing systems need replacement and where digital tools can be used to increase efficiency.
Define the target users - Identify who will use your software whether your internal teams, agents, customers, or all of them. This helps you design the software accordingly.
Doing all the above steps will enable you to clearly set goals and outline what essential features the software will have that make a big impact on the business process. In this manner, taking some time to get deep into the needs of your business will enable the rest of the process to flow smoothly, thus ending with a software solution that would really help to solve the problem and give you value from it.
Once you have gathered the requirements, conduct extensive research on the current market trends and competitive products in the insurance sector. By doing so, you can get valuable insights into how to innovate your software and expand your offerings. This helps your product stand out in the market.
Understand the insurance industry trends - Start by understanding the latest industry trends such as what new technologies are being used. Stay updated with new regulations, technologies, and customer demands to reflect on them.
Analyze your competitors - Research the existing insurance software solutions in the market. Analyze what they offer, how popular they are, what makes them so, and all. Look for areas where they fall short and figure out how your software could be made to provide something different than others.
Collect feedback - Contact various insurance agents, brokers, industry experts, and customers to know what they are saying about the existing system. You can get to know what they expect in an insurance software solution and design a system that directly addresses their needs.
Study regulatory requirements - As we all know the insurance industry is highly regulated and the software you are going to develop must comply with all legal standards. So thoroughly look for all the regulatory requirements your software must meet.
Conducting thorough market research is more important if you want your software to stay updated and competitive in the market. If you want help with that, you can approach a top software consulting company that offers all kinds of consultation services, including market research and compliance consulting.
The next step is to choose the right type of insurance software with various types out there. Each addresses different business needs. For example, if you want to improve your client relationship, then CRM-based insurance software is the best choice. On the other hand, for tasks like managing documents or simplifying insurance application processes, there are some other types designed for those purposes.
This software remains an all-in-one solution for insurance companies. It handles various functions and automates day-to-day operations. If you are looking for a comprehensive tool to manage various aspects of insurance services, then this type is most preferred.
If your target audience is mainly claims adjusters, then make filing and submitting claims easy by developing this software. Claims management software helps track all claim details in one place, assign adjusters, and even detect fraudulent claims.
This type of software manages the entire lifecycle of insurance policies. It automates various tasks like generating quotes, calculating premiums, and handling renewals, and cancellations. It serves as a digital hub for customer details, documents, and policy information.
The best solution is CRM software when the main goal has been to improve customer relationships. It makes sure agents stay connected with customers by all means. It integrates various channels to manage interactions with customers and stores customer data to analyze their behavior and offer personalized services.
This software solution is designed specifically to automate the time-consuming underwriting process. It helps accurately determine coverage eligibility, estimate the risks associated with applicants, and calculate how much they must pay for coverage.
There is no rule that you should pick one type of software and stick to that same solution. You can combine various features and functionalities from different software types and design a customized one. But for this, you might need a custom software development company that offers a personalized approach to identify your specific needs and build tailored software solutions.
Now that you have selected the type of software that will suit your business, consider what features and functionalities your software will possess. It is essential to define the features before choosing the technologies. Only when the features are clearly outlined, you can choose the technology stack accordingly.
Because to implement certain features, you may require specific technologies. You cannot afford to lose time at that point. If you have all the required technologies, implementing your desired features will be easy, hence you should identify the features beforehand.
Insurance software's features and functionalities vary based on types and their primary focus. However, some common features should be included across all types of insurance software, which are as follows.
User-friendly Interface
An intuitive interface makes it easy for administrators and customers to navigate the software without any extensive training
Secure authentication
Secure authentication allows only authorized access and helps safeguard sensitive information and customer accounts
Centralized Database
It serves as a centralized system to store and access all information such as customer details, policies, and claims
Document Management
This feature provides necessary tools to upload, store, and organize various documents such as insurance policies, claim forms, and contracts
Integration with Other Tools
If your software has integration capability, then it can be easily integrated with various other third-party tools, systems, and platforms like CRM software, payment gateways, etc. This lets your users acquire your diverse services in one place without having to switch between multiple platforms.
Customer Portal
Customer Portal makes it easy for customers to view their policies, file claims, make payments, check claim statuses, and update their personal information
Web and Mobile Accessibility
This feature helps you cater to users who want to access your services on both desktops and mobile devices anytime, anywhere
Notifications and Alerts
Automated notifications and alerts keep users informed of important updates like policy renewals, claim statuses, or new offers
Search and Filter Options
Advanced search and filter tools help users find specific policies, claims, or customer records they need
Reporting and Analytics
This feature includes dashboards and reporting tools that help track performance and analyze customer behavior to improve your services
Next, you need to choose the right technology stack that includes various programming languages, frameworks, and tools. Technology selection determines how the software would function, be updated, and perform against user demands. Therefore, careful and judicious choices must be made while selecting the right combination of technologies to meet user requirements and industry standards.
| Category | Tech Stack |
| Frontend Development | Languages - HTML, JavaScript, CSS Frameworks - React.js, Angular.js, Vue.js |
| Backend Development | Languages - C#, Node.js, Python, Java Frameworks - Express.js, ASP.Net Core, Django, SpringBoot |
| Database | SQL - MySQL, PostgreSQL NoSQL - MongoDB, Cassandra |
| Cloud Platforms | Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform |
| API Integration | RESTful APIs, GraphQL APIs |
| Authentication | 0Auth 2.0, JSON Web Token (JWT), OpenID Connect |
If you implement artificial intelligence technology, it will automate various tasks that once needed manual handling. Machine learning capabilities can analyze large data sets. This helps assess risks in applicants’ profiles, customize insurance policies, validate claims, and identify fraudulent claims.
If you want to store large volumes of data securely and access them from anywhere, then use cloud computing. Cloud-based insurance software platforms enable teams across different locations to collaborate. It also offers robust backup and disaster recovery solutions. In the case of data loss, you can easily restore them.
We already know that being wearables, IoT devices offer real-time data about customers. For example, sensors in vehicles provide exact accident data, time, and location. Insurers can use this data to offer flexible premiums based on actual happening rather than estimates. IoT also facilitates pay-as-you-drive models to reduce fraudulent claims. You can partner with IoT solution providers who can help you switch from reactive to proactive models.
You adopt RPA in your software to automate most of the same, routine procedures. RPA solutions fast-track the processing of claims as it will extract data from claim forms and validate information as well. They automatically create and renew insurance policies by pulling customer data and verifying documents. RPA bots help agents and underwriters by handling data entry tasks like updating customer records without errors.
Blockchain in insurance operations increases transparency. It is mainly used in creating smart contracts that automate claim processing, insurance policies, and payments once all predefined contract conditions are met. It helps maintain a secure and tamper-proof storage of data. If you are not sure about integrating this technology into your software, then consider consulting with blockchain service providers who can guide you.
Predictive analytics uses historical data and advanced algorithms to predict risks associated with applicants or policies. Based on that prediction, insurers can tailor premiums. It also helps analyze patterns in claims data which in turn flag unusual or suspicious activities. Using this innovative technology, you can even predict which customers are at risk of switching providers and create targeted retention strategies.
When it comes to building insurance software, cybersecurity comes first. Because insurance is a kind of industry that handles vast amounts of personal, financial, and medical data. This will be one of the easiest vulnerabilities to cyber attacks, and as such, effective cybersecurity measures would be required and necessary to ensure this sensitive information would be safe along with the security of the whole system.
Before designing the insurance software, let's understand what UI and UX are. The UI refers to how the software looks. For example, whatever elements it has such as buttons, icons, and menus. Whereas, UX focuses on how smoothly the software works.
The user interface you create must be intuitive as well as functional. As you are going to develop insurance software, your target users must be either insurance agents, customers, or back-office staff. So the design should be simple and clear enough to work with quotes, policies, and claims easily.
To make this step a bit easier, you can first create basic layouts or wireframes that map out the software architecture. This helps you get an idea of what your final outlook will be. Upon those layouts, use various design elements like colors, fonts, etc to give a complete look. Check multiple times whether it works perfectly across various devices and how easy it is to complete tasks.
As we have already chosen programming languages and frameworks that best fit the project requirements, you can get through this step easily. However, you must be able to write clean, efficient, and maintainable code using those programming languages. Coding is essential for both front-end and back-end.
For the front end, use either React or Angular to create code that matches the design you already created. Before proceeding with this step, set up the development environment by configuring the tools, software, and hardware required for coding.
Along with developing a solid backend architecture for your software, you need to create a secure database. It helps manage customer details, claims data, policy details, and other important records. Build a robust server-side system that efficiently handles the logic and databases.
Once the core software is developed, move on to implement APIs and integrate third-party services. But if you are new to developing software, then you might be wondering what they are. APIs otherwise known as Application Programming Interfaces connect your software to other external systems. Integrations help increase the capabilities of your software.
First, you have to figure out what APIs your software needs to connect with. Because there are numerous APIs out there and definitely yours does not require all. Some of the common APIs most insurance software have are payment gateways, communication services, insurance databases, and fraud detection tools.
Once you know what you need, select the service providers who provide you with API keys or tokens. These keys help authenticate your software and access APIs securely. As you have written code that links API to your software, this integration process will go smoothly without any interruptions.
Here is a list of important APIs and third-party integrations that are commonly used in insurance software.
| Category | APIs/Third Party Integrations |
| Policy Management | Duck Creek Policy, Guidewire PolicyCenter |
| Claims Management | ClaimCenter, CCC International Solutions Claims |
| Payment Gateways | Stripe, PayPal, Authorize.Net |
| Customer Support | Zendesk, Salesforce |
| Underwriting | Swiss Re, Verisk, LexisNexis |
Insurance software development demands more regulatory compliance. If you want your software to be successful in the long term, then it must conform to all laws and standards in place. First, you have to know the regulations applied to your software.
These vary from region to region. But some of the common regulations include GDPR, HIPAA, etc. These are data protection laws that state guidelines on the storage and sharing of customers' personal data.
If your software complies with international regulations, then you have no reason to be concerned with legal conflicts, even if you intend to work in different regions. Regulations not only protect your business from legal risks and fines but also give customers trust that whatever you are legally sound. However, these standards keep changing with time, so stay updated on new laws, guidelines, or updates.
At this stage, you might have a functioning version of your insurance software, but it may not be perfect yet. To make it flawless, it requires further testing and refinement. Insurance software involves various personal details and sensitive data. Even a small mistake can lead to data breaches or system failures.
So it is important to ensure the software is free of errors and works perfectly before it goes live. Conducting multiple tests such as functional, performance, security, etc helps fix such issues and make it fully functional as well as secure. Use automated testing tools to check for issues. Also, go through the software manually to detect flaws that automated tools might miss.
Keep in mind that testing is not a one-time process. You need to retest the software until all issues are resolved. But if you do proper testing in the beginning, you can avoid major errors that need costly fixes later on.
This is the last step in the development lifecycle. But before deploying, make sure all previous steps are complete. Set up a secure and reliable server or cloud platform to install your software. But cloud-based deployment is a preferred choice as it offers easy updates and flexibility you require.
If you are just replacing the old system, carefully transfer all the existing data to the new software through data migration. This process helps you avoid data loss or inconsistencies. Once everything is ready, the software can be made live.
Deploying in phases is yet another likable option. This involves rolling out the software to a small group of users before making it available to everyone. This phased approach is called a pilot launch which helps you detect any issues before full deployment.
From our guide on insurance software development, you may have realized that insurance software is more than just a tool. It can completely transform your business. Whether you are just starting or looking to scale your business, investing in this innovative software solution can be your go-to choice.
Developing insurance software independently or with an in-house team can be a complex task filled with challenges. It requires expertise in multiple areas such as design, programming, testing, and more skills that not every individual or team may possess. This is where partnering with an experienced insurance software development company can make all the difference.
There are several approaches to consider for your development needs. A project can either be outsourced to a leading software development company that has the right industry knowledge and technical expertise. Alternatively, your company can recruit experienced software developers who can effectively work in cooperation with your in-house team. However, leveraging the expert is the best choice in terms of quality and terms.
Maticz is a top insurance software development company with a proven track record of offering innovative software solutions for the insurance industry. We have years of expertise in building Fintech and InsurTech products irrespective of complexity and financial scope. Our team of experienced and skilled developers handles every aspect of your project right from initial consultation to final deployment. We develop highly functional insurance software to meet the needs of businesses from various niches. Collaborate with us to modernize your business with custom insurance software solutions.
Those days are long gone when people spend hours filling out clunky forms and waiting for days to get their insurance quotes. The power of software has completely changed from clunky to clicky in the insurance industry. There is a huge demand for frictionless and data-rich experiences which the outdated system cannot provide due to the inefficiency and inflexibility it faces. This is where insurance software comes in as a solution offering a platform to streamline and automate various tasks in the insurance industry.
This guide is for insurance companies and businesses looking to build robust software. It helps you explore everything you need about insurance software development such as the technical aspects of developing insurance software, its major types, core features and functionalities, and much more. Ready to dive in? Let’s get started.
Insurance software is a custom-built software or digital tool that helps insurance companies with activities such as administering, underwriting, and processing insurance claims and premiums. Such software uses high-end tools and technologies to facilitate automated workflows, simple claim processing, and insurance underwriting.
Insurance software offers convenient and seamless access to insurance services, addressing both administrative tasks and client-facing insurance operations. It helps businesses simplify various internal business processes as well as connect well with customers which is seen as more important in industries like insurance. This ultimately drives business growth and success.
Insurance software development refers to the process of creating, designing, and maintaining software applications and systems tailored for the insurance industry. These solutions help insurance companies automate and optimize various functions, from policy management and claims processing to customer service and data analysis.
The demand for insurance software development has grown significantly as the industry faces increasing pressure to improve efficiency, drive innovation, and enhance customer experiences. Traditional methods of managing policies, claims, and customer data are no longer sufficient to keep up with rapid technological advancements and the evolving needs of the market. As a result, developing next-generation insurance software has become crucial for businesses looking to enhance client satisfaction, streamline operations, and maintain a competitive edge.
Developing modern insurance software is imperative for businesses wanting to overcome the challenges of outdated insurance systems. For those businesses that seek to be competitive and future-proof, modern insurance software is an investment worth making, and here is why.
Enhanced Operational Efficiency
Traditional insurance processing, such as policy creation, claims handling, etc., is manual and time-consuming. However, modern insurance software has changed this, as businesses can automate these functions and concentrate more on other productive tasks.
Improved Customer Experience
Legacy systems made it difficult for customers to contact insurance providers. They had to wait for hours and yet get only limited information. This software offers self-service portals and mobile apps allowing for faster processing times.
Reduced Errors
Manual processes in older systems were prone to data entry errors, miscalculations, or lost documents. However, this software uses precise algorithms to automatically handle premium calculations and claim assessments.
Robust Data Security
Insurance software has advanced security features to protect sensitive customer data. It ensures all personal details, policy records, and financial information are stored in secured databases to avoid cyberattacks and data theft.
Cost-Effectiveness
Maintaining legacy systems can be costly because they require frequent repairs and updates. Also, errors associated with this method lead to higher costs. Insurance software requires only less maintenance and avoids costly disruptions.
The insurance software development landscape is constantly evolving, with new technologies shaping how insurance companies operate. Below is a detailed process we follow to create custom insurance software.
Before developing insurance software, the first step is understanding the business requirements. It is important to figure out what your business wants to achieve by developing such software. This step helps you do that and also puts a foundation for the development.
Identify the challenge - Define what challenges you are facing whether it is processing claims, managing policies, or improving customer services. Identify what operations or processes from the current system you need to improve.
Find the solution - Figure out how this software solves the challenges and improves the existing system. It would be easy if you knew from first what you expect from the software.
Analyze the current process - Thoroughly analyze your current system and specify all processes you need to improve. Identify which existing systems need replacement and where digital tools can be used to increase efficiency.
Define the target users - Identify who will use your software whether your internal teams, agents, customers, or all of them. This helps you design the software accordingly.
Doing all the above steps will enable you to clearly set goals and outline what essential features the software will have that make a big impact on the business process. In this manner, taking some time to get deep into the needs of your business will enable the rest of the process to flow smoothly, thus ending with a software solution that would really help to solve the problem and give you value from it.
Once you have gathered the requirements, conduct extensive research on the current market trends and competitive products in the insurance sector. By doing so, you can get valuable insights into how to innovate your software and expand your offerings. This helps your product stand out in the market.
Understand the insurance industry trends - Start by understanding the latest industry trends such as what new technologies are being used. Stay updated with new regulations, technologies, and customer demands to reflect on them.
Analyze your competitors - Research the existing insurance software solutions in the market. Analyze what they offer, how popular they are, what makes them so, and all. Look for areas where they fall short and figure out how your software could be made to provide something different than others.
Collect feedback - Contact various insurance agents, brokers, industry experts, and customers to know what they are saying about the existing system. You can get to know what they expect in an insurance software solution and design a system that directly addresses their needs.
Study regulatory requirements - As we all know the insurance industry is highly regulated and the software you are going to develop must comply with all legal standards. So thoroughly look for all the regulatory requirements your software must meet.
Conducting thorough market research is more important if you want your software to stay updated and competitive in the market. If you want help with that, you can approach a top software consulting company that offers all kinds of consultation services, including market research and compliance consulting.
The next step is to choose the right type of insurance software with various types out there. Each addresses different business needs. For example, if you want to improve your client relationship, then CRM-based insurance software is the best choice. On the other hand, for tasks like managing documents or simplifying insurance application processes, there are some other types designed for those purposes.
This software remains an all-in-one solution for insurance companies. It handles various functions and automates day-to-day operations. If you are looking for a comprehensive tool to manage various aspects of insurance services, then this type is most preferred.
If your target audience is mainly claims adjusters, then make filing and submitting claims easy by developing this software. Claims management software helps track all claim details in one place, assign adjusters, and even detect fraudulent claims.
This type of software manages the entire lifecycle of insurance policies. It automates various tasks like generating quotes, calculating premiums, and handling renewals, and cancellations. It serves as a digital hub for customer details, documents, and policy information.
The best solution is CRM software when the main goal has been to improve customer relationships. It makes sure agents stay connected with customers by all means. It integrates various channels to manage interactions with customers and stores customer data to analyze their behavior and offer personalized services.
This software solution is designed specifically to automate the time-consuming underwriting process. It helps accurately determine coverage eligibility, estimate the risks associated with applicants, and calculate how much they must pay for coverage.
There is no rule that you should pick one type of software and stick to that same solution. You can combine various features and functionalities from different software types and design a customized one. But for this, you might need a custom software development company that offers a personalized approach to identify your specific needs and build tailored software solutions.
Now that you have selected the type of software that will suit your business, consider what features and functionalities your software will possess. It is essential to define the features before choosing the technologies. Only when the features are clearly outlined, you can choose the technology stack accordingly.
Because to implement certain features, you may require specific technologies. You cannot afford to lose time at that point. If you have all the required technologies, implementing your desired features will be easy, hence you should identify the features beforehand.
Insurance software's features and functionalities vary based on types and their primary focus. However, some common features should be included across all types of insurance software, which are as follows.
User-friendly Interface
An intuitive interface makes it easy for administrators and customers to navigate the software without any extensive training
Secure authentication
Secure authentication allows only authorized access and helps safeguard sensitive information and customer accounts
Centralized Database
It serves as a centralized system to store and access all information such as customer details, policies, and claims
Document Management
This feature provides necessary tools to upload, store, and organize various documents such as insurance policies, claim forms, and contracts
Integration with Other Tools
If your software has integration capability, then it can be easily integrated with various other third-party tools, systems, and platforms like CRM software, payment gateways, etc. This lets your users acquire your diverse services in one place without having to switch between multiple platforms.
Customer Portal
Customer Portal makes it easy for customers to view their policies, file claims, make payments, check claim statuses, and update their personal information
Web and Mobile Accessibility
This feature helps you cater to users who want to access your services on both desktops and mobile devices anytime, anywhere
Notifications and Alerts
Automated notifications and alerts keep users informed of important updates like policy renewals, claim statuses, or new offers
Search and Filter Options
Advanced search and filter tools help users find specific policies, claims, or customer records they need
Reporting and Analytics
This feature includes dashboards and reporting tools that help track performance and analyze customer behavior to improve your services
Next, you need to choose the right technology stack that includes various programming languages, frameworks, and tools. Technology selection determines how the software would function, be updated, and perform against user demands. Therefore, careful and judicious choices must be made while selecting the right combination of technologies to meet user requirements and industry standards.
| Category | Tech Stack |
| Frontend Development | Languages - HTML, JavaScript, CSS Frameworks - React.js, Angular.js, Vue.js |
| Backend Development | Languages - C#, Node.js, Python, Java Frameworks - Express.js, ASP.Net Core, Django, SpringBoot |
| Database | SQL - MySQL, PostgreSQL NoSQL - MongoDB, Cassandra |
| Cloud Platforms | Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform |
| API Integration | RESTful APIs, GraphQL APIs |
| Authentication | 0Auth 2.0, JSON Web Token (JWT), OpenID Connect |
If you implement artificial intelligence technology, it will automate various tasks that once needed manual handling. Machine learning capabilities can analyze large data sets. This helps assess risks in applicants’ profiles, customize insurance policies, validate claims, and identify fraudulent claims.
If you want to store large volumes of data securely and access them from anywhere, then use cloud computing. Cloud-based insurance software platforms enable teams across different locations to collaborate. It also offers robust backup and disaster recovery solutions. In the case of data loss, you can easily restore them.
We already know that being wearables, IoT devices offer real-time data about customers. For example, sensors in vehicles provide exact accident data, time, and location. Insurers can use this data to offer flexible premiums based on actual happening rather than estimates. IoT also facilitates pay-as-you-drive models to reduce fraudulent claims. You can partner with IoT solution providers who can help you switch from reactive to proactive models.
You adopt RPA in your software to automate most of the same, routine procedures. RPA solutions fast-track the processing of claims as it will extract data from claim forms and validate information as well. They automatically create and renew insurance policies by pulling customer data and verifying documents. RPA bots help agents and underwriters by handling data entry tasks like updating customer records without errors.
Blockchain in insurance operations increases transparency. It is mainly used in creating smart contracts that automate claim processing, insurance policies, and payments once all predefined contract conditions are met. It helps maintain a secure and tamper-proof storage of data. If you are not sure about integrating this technology into your software, then consider consulting with blockchain service providers who can guide you.
Predictive analytics uses historical data and advanced algorithms to predict risks associated with applicants or policies. Based on that prediction, insurers can tailor premiums. It also helps analyze patterns in claims data which in turn flag unusual or suspicious activities. Using this innovative technology, you can even predict which customers are at risk of switching providers and create targeted retention strategies.
When it comes to building insurance software, cybersecurity comes first. Because insurance is a kind of industry that handles vast amounts of personal, financial, and medical data. This will be one of the easiest vulnerabilities to cyber attacks, and as such, effective cybersecurity measures would be required and necessary to ensure this sensitive information would be safe along with the security of the whole system.
Before designing the insurance software, let's understand what UI and UX are. The UI refers to how the software looks. For example, whatever elements it has such as buttons, icons, and menus. Whereas, UX focuses on how smoothly the software works.
The user interface you create must be intuitive as well as functional. As you are going to develop insurance software, your target users must be either insurance agents, customers, or back-office staff. So the design should be simple and clear enough to work with quotes, policies, and claims easily.
To make this step a bit easier, you can first create basic layouts or wireframes that map out the software architecture. This helps you get an idea of what your final outlook will be. Upon those layouts, use various design elements like colors, fonts, etc to give a complete look. Check multiple times whether it works perfectly across various devices and how easy it is to complete tasks.
As we have already chosen programming languages and frameworks that best fit the project requirements, you can get through this step easily. However, you must be able to write clean, efficient, and maintainable code using those programming languages. Coding is essential for both front-end and back-end.
For the front end, use either React or Angular to create code that matches the design you already created. Before proceeding with this step, set up the development environment by configuring the tools, software, and hardware required for coding.
Along with developing a solid backend architecture for your software, you need to create a secure database. It helps manage customer details, claims data, policy details, and other important records. Build a robust server-side system that efficiently handles the logic and databases.
Once the core software is developed, move on to implement APIs and integrate third-party services. But if you are new to developing software, then you might be wondering what they are. APIs otherwise known as Application Programming Interfaces connect your software to other external systems. Integrations help increase the capabilities of your software.
First, you have to figure out what APIs your software needs to connect with. Because there are numerous APIs out there and definitely yours does not require all. Some of the common APIs most insurance software have are payment gateways, communication services, insurance databases, and fraud detection tools.
Once you know what you need, select the service providers who provide you with API keys or tokens. These keys help authenticate your software and access APIs securely. As you have written code that links API to your software, this integration process will go smoothly without any interruptions.
Here is a list of important APIs and third-party integrations that are commonly used in insurance software.
| Category | APIs/Third Party Integrations |
| Policy Management | Duck Creek Policy, Guidewire PolicyCenter |
| Claims Management | ClaimCenter, CCC International Solutions Claims |
| Payment Gateways | Stripe, PayPal, Authorize.Net |
| Customer Support | Zendesk, Salesforce |
| Underwriting | Swiss Re, Verisk, LexisNexis |
Insurance software development demands more regulatory compliance. If you want your software to be successful in the long term, then it must conform to all laws and standards in place. First, you have to know the regulations applied to your software.
These vary from region to region. But some of the common regulations include GDPR, HIPAA, etc. These are data protection laws that state guidelines on the storage and sharing of customers' personal data.
If your software complies with international regulations, then you have no reason to be concerned with legal conflicts, even if you intend to work in different regions. Regulations not only protect your business from legal risks and fines but also give customers trust that whatever you are legally sound. However, these standards keep changing with time, so stay updated on new laws, guidelines, or updates.
At this stage, you might have a functioning version of your insurance software, but it may not be perfect yet. To make it flawless, it requires further testing and refinement. Insurance software involves various personal details and sensitive data. Even a small mistake can lead to data breaches or system failures.
So it is important to ensure the software is free of errors and works perfectly before it goes live. Conducting multiple tests such as functional, performance, security, etc helps fix such issues and make it fully functional as well as secure. Use automated testing tools to check for issues. Also, go through the software manually to detect flaws that automated tools might miss.
Keep in mind that testing is not a one-time process. You need to retest the software until all issues are resolved. But if you do proper testing in the beginning, you can avoid major errors that need costly fixes later on.
This is the last step in the development lifecycle. But before deploying, make sure all previous steps are complete. Set up a secure and reliable server or cloud platform to install your software. But cloud-based deployment is a preferred choice as it offers easy updates and flexibility you require.
If you are just replacing the old system, carefully transfer all the existing data to the new software through data migration. This process helps you avoid data loss or inconsistencies. Once everything is ready, the software can be made live.
Deploying in phases is yet another likable option. This involves rolling out the software to a small group of users before making it available to everyone. This phased approach is called a pilot launch which helps you detect any issues before full deployment.
From our guide on insurance software development, you may have realized that insurance software is more than just a tool. It can completely transform your business. Whether you are just starting or looking to scale your business, investing in this innovative software solution can be your go-to choice.
Developing insurance software independently or with an in-house team can be a complex task filled with challenges. It requires expertise in multiple areas such as design, programming, testing, and more skills that not every individual or team may possess. This is where partnering with an experienced insurance software development company can make all the difference.
There are several approaches to consider for your development needs. A project can either be outsourced to a leading software development company that has the right industry knowledge and technical expertise. Alternatively, your company can recruit experienced software developers who can effectively work in cooperation with your in-house team. However, leveraging the expert is the best choice in terms of quality and terms.
Maticz is a top insurance software development company with a proven track record of offering innovative software solutions for the insurance industry. We have years of expertise in building Fintech and InsurTech products irrespective of complexity and financial scope. Our team of experienced and skilled developers handles every aspect of your project right from initial consultation to final deployment. We develop highly functional insurance software to meet the needs of businesses from various niches. Collaborate with us to modernize your business with custom insurance software solutions.
Those days are long gone when people spend hours filling out clunky forms and waiting for days to get their insurance quotes. The power of software has completely changed from clunky to clicky in the insurance industry. There is a huge demand for frictionless and data-rich experiences which the outdated system cannot provide due to the inefficiency and inflexibility it faces. This is where insurance software comes in as a solution offering a platform to streamline and automate various tasks in the insurance industry.
This guide is for insurance companies and businesses looking to build robust software. It helps you explore everything you need about insurance software development such as the technical aspects of developing insurance software, its major types, core features and functionalities, and much more. Ready to dive in? Let’s get started.
Insurance software is a custom-built software or digital tool that helps insurance companies with activities such as administering, underwriting, and processing insurance claims and premiums. Such software uses high-end tools and technologies to facilitate automated workflows, simple claim processing, and insurance underwriting.
Insurance software offers convenient and seamless access to insurance services, addressing both administrative tasks and client-facing insurance operations. It helps businesses simplify various internal business processes as well as connect well with customers which is seen as more important in industries like insurance. This ultimately drives business growth and success.
Insurance software development refers to the process of creating, designing, and maintaining software applications and systems tailored for the insurance industry. These solutions help insurance companies automate and optimize various functions, from policy management and claims processing to customer service and data analysis.
The demand for insurance software development has grown significantly as the industry faces increasing pressure to improve efficiency, drive innovation, and enhance customer experiences. Traditional methods of managing policies, claims, and customer data are no longer sufficient to keep up with rapid technological advancements and the evolving needs of the market. As a result, developing next-generation insurance software has become crucial for businesses looking to enhance client satisfaction, streamline operations, and maintain a competitive edge.
Developing modern insurance software is imperative for businesses wanting to overcome the challenges of outdated insurance systems. For those businesses that seek to be competitive and future-proof, modern insurance software is an investment worth making, and here is why.
Enhanced Operational Efficiency
Traditional insurance processing, such as policy creation, claims handling, etc., is manual and time-consuming. However, modern insurance software has changed this, as businesses can automate these functions and concentrate more on other productive tasks.
Improved Customer Experience
Legacy systems made it difficult for customers to contact insurance providers. They had to wait for hours and yet get only limited information. This software offers self-service portals and mobile apps allowing for faster processing times.
Reduced Errors
Manual processes in older systems were prone to data entry errors, miscalculations, or lost documents. However, this software uses precise algorithms to automatically handle premium calculations and claim assessments.
Robust Data Security
Insurance software has advanced security features to protect sensitive customer data. It ensures all personal details, policy records, and financial information are stored in secured databases to avoid cyberattacks and data theft.
Cost-Effectiveness
Maintaining legacy systems can be costly because they require frequent repairs and updates. Also, errors associated with this method lead to higher costs. Insurance software requires only less maintenance and avoids costly disruptions.
The insurance software development landscape is constantly evolving, with new technologies shaping how insurance companies operate. Below is a detailed process we follow to create custom insurance software.
Before developing insurance software, the first step is understanding the business requirements. It is important to figure out what your business wants to achieve by developing such software. This step helps you do that and also puts a foundation for the development.
Identify the challenge - Define what challenges you are facing whether it is processing claims, managing policies, or improving customer services. Identify what operations or processes from the current system you need to improve.
Find the solution - Figure out how this software solves the challenges and improves the existing system. It would be easy if you knew from first what you expect from the software.
Analyze the current process - Thoroughly analyze your current system and specify all processes you need to improve. Identify which existing systems need replacement and where digital tools can be used to increase efficiency.
Define the target users - Identify who will use your software whether your internal teams, agents, customers, or all of them. This helps you design the software accordingly.
Doing all the above steps will enable you to clearly set goals and outline what essential features the software will have that make a big impact on the business process. In this manner, taking some time to get deep into the needs of your business will enable the rest of the process to flow smoothly, thus ending with a software solution that would really help to solve the problem and give you value from it.
Once you have gathered the requirements, conduct extensive research on the current market trends and competitive products in the insurance sector. By doing so, you can get valuable insights into how to innovate your software and expand your offerings. This helps your product stand out in the market.
Understand the insurance industry trends - Start by understanding the latest industry trends such as what new technologies are being used. Stay updated with new regulations, technologies, and customer demands to reflect on them.
Analyze your competitors - Research the existing insurance software solutions in the market. Analyze what they offer, how popular they are, what makes them so, and all. Look for areas where they fall short and figure out how your software could be made to provide something different than others.
Collect feedback - Contact various insurance agents, brokers, industry experts, and customers to know what they are saying about the existing system. You can get to know what they expect in an insurance software solution and design a system that directly addresses their needs.
Study regulatory requirements - As we all know the insurance industry is highly regulated and the software you are going to develop must comply with all legal standards. So thoroughly look for all the regulatory requirements your software must meet.
Conducting thorough market research is more important if you want your software to stay updated and competitive in the market. If you want help with that, you can approach a top software consulting company that offers all kinds of consultation services, including market research and compliance consulting.
The next step is to choose the right type of insurance software with various types out there. Each addresses different business needs. For example, if you want to improve your client relationship, then CRM-based insurance software is the best choice. On the other hand, for tasks like managing documents or simplifying insurance application processes, there are some other types designed for those purposes.
This software remains an all-in-one solution for insurance companies. It handles various functions and automates day-to-day operations. If you are looking for a comprehensive tool to manage various aspects of insurance services, then this type is most preferred.
If your target audience is mainly claims adjusters, then make filing and submitting claims easy by developing this software. Claims management software helps track all claim details in one place, assign adjusters, and even detect fraudulent claims.
This type of software manages the entire lifecycle of insurance policies. It automates various tasks like generating quotes, calculating premiums, and handling renewals, and cancellations. It serves as a digital hub for customer details, documents, and policy information.
The best solution is CRM software when the main goal has been to improve customer relationships. It makes sure agents stay connected with customers by all means. It integrates various channels to manage interactions with customers and stores customer data to analyze their behavior and offer personalized services.
This software solution is designed specifically to automate the time-consuming underwriting process. It helps accurately determine coverage eligibility, estimate the risks associated with applicants, and calculate how much they must pay for coverage.
There is no rule that you should pick one type of software and stick to that same solution. You can combine various features and functionalities from different software types and design a customized one. But for this, you might need a custom software development company that offers a personalized approach to identify your specific needs and build tailored software solutions.
Now that you have selected the type of software that will suit your business, consider what features and functionalities your software will possess. It is essential to define the features before choosing the technologies. Only when the features are clearly outlined, you can choose the technology stack accordingly.
Because to implement certain features, you may require specific technologies. You cannot afford to lose time at that point. If you have all the required technologies, implementing your desired features will be easy, hence you should identify the features beforehand.
Insurance software's features and functionalities vary based on types and their primary focus. However, some common features should be included across all types of insurance software, which are as follows.
User-friendly Interface
An intuitive interface makes it easy for administrators and customers to navigate the software without any extensive training
Secure authentication
Secure authentication allows only authorized access and helps safeguard sensitive information and customer accounts
Centralized Database
It serves as a centralized system to store and access all information such as customer details, policies, and claims
Document Management
This feature provides necessary tools to upload, store, and organize various documents such as insurance policies, claim forms, and contracts
Integration with Other Tools
If your software has integration capability, then it can be easily integrated with various other third-party tools, systems, and platforms like CRM software, payment gateways, etc. This lets your users acquire your diverse services in one place without having to switch between multiple platforms.
Customer Portal
Customer Portal makes it easy for customers to view their policies, file claims, make payments, check claim statuses, and update their personal information
Web and Mobile Accessibility
This feature helps you cater to users who want to access your services on both desktops and mobile devices anytime, anywhere
Notifications and Alerts
Automated notifications and alerts keep users informed of important updates like policy renewals, claim statuses, or new offers
Search and Filter Options
Advanced search and filter tools help users find specific policies, claims, or customer records they need
Reporting and Analytics
This feature includes dashboards and reporting tools that help track performance and analyze customer behavior to improve your services
Next, you need to choose the right technology stack that includes various programming languages, frameworks, and tools. Technology selection determines how the software would function, be updated, and perform against user demands. Therefore, careful and judicious choices must be made while selecting the right combination of technologies to meet user requirements and industry standards.
| Category | Tech Stack |
| Frontend Development | Languages - HTML, JavaScript, CSS Frameworks - React.js, Angular.js, Vue.js |
| Backend Development | Languages - C#, Node.js, Python, Java Frameworks - Express.js, ASP.Net Core, Django, SpringBoot |
| Database | SQL - MySQL, PostgreSQL NoSQL - MongoDB, Cassandra |
| Cloud Platforms | Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform |
| API Integration | RESTful APIs, GraphQL APIs |
| Authentication | 0Auth 2.0, JSON Web Token (JWT), OpenID Connect |
If you implement artificial intelligence technology, it will automate various tasks that once needed manual handling. Machine learning capabilities can analyze large data sets. This helps assess risks in applicants’ profiles, customize insurance policies, validate claims, and identify fraudulent claims.
If you want to store large volumes of data securely and access them from anywhere, then use cloud computing. Cloud-based insurance software platforms enable teams across different locations to collaborate. It also offers robust backup and disaster recovery solutions. In the case of data loss, you can easily restore them.
We already know that being wearables, IoT devices offer real-time data about customers. For example, sensors in vehicles provide exact accident data, time, and location. Insurers can use this data to offer flexible premiums based on actual happening rather than estimates. IoT also facilitates pay-as-you-drive models to reduce fraudulent claims. You can partner with IoT solution providers who can help you switch from reactive to proactive models.
You adopt RPA in your software to automate most of the same, routine procedures. RPA solutions fast-track the processing of claims as it will extract data from claim forms and validate information as well. They automatically create and renew insurance policies by pulling customer data and verifying documents. RPA bots help agents and underwriters by handling data entry tasks like updating customer records without errors.
Blockchain in insurance operations increases transparency. It is mainly used in creating smart contracts that automate claim processing, insurance policies, and payments once all predefined contract conditions are met. It helps maintain a secure and tamper-proof storage of data. If you are not sure about integrating this technology into your software, then consider consulting with blockchain service providers who can guide you.
Predictive analytics uses historical data and advanced algorithms to predict risks associated with applicants or policies. Based on that prediction, insurers can tailor premiums. It also helps analyze patterns in claims data which in turn flag unusual or suspicious activities. Using this innovative technology, you can even predict which customers are at risk of switching providers and create targeted retention strategies.
When it comes to building insurance software, cybersecurity comes first. Because insurance is a kind of industry that handles vast amounts of personal, financial, and medical data. This will be one of the easiest vulnerabilities to cyber attacks, and as such, effective cybersecurity measures would be required and necessary to ensure this sensitive information would be safe along with the security of the whole system.
Before designing the insurance software, let's understand what UI and UX are. The UI refers to how the software looks. For example, whatever elements it has such as buttons, icons, and menus. Whereas, UX focuses on how smoothly the software works.
The user interface you create must be intuitive as well as functional. As you are going to develop insurance software, your target users must be either insurance agents, customers, or back-office staff. So the design should be simple and clear enough to work with quotes, policies, and claims easily.
To make this step a bit easier, you can first create basic layouts or wireframes that map out the software architecture. This helps you get an idea of what your final outlook will be. Upon those layouts, use various design elements like colors, fonts, etc to give a complete look. Check multiple times whether it works perfectly across various devices and how easy it is to complete tasks.
As we have already chosen programming languages and frameworks that best fit the project requirements, you can get through this step easily. However, you must be able to write clean, efficient, and maintainable code using those programming languages. Coding is essential for both front-end and back-end.
For the front end, use either React or Angular to create code that matches the design you already created. Before proceeding with this step, set up the development environment by configuring the tools, software, and hardware required for coding.
Along with developing a solid backend architecture for your software, you need to create a secure database. It helps manage customer details, claims data, policy details, and other important records. Build a robust server-side system that efficiently handles the logic and databases.
Once the core software is developed, move on to implement APIs and integrate third-party services. But if you are new to developing software, then you might be wondering what they are. APIs otherwise known as Application Programming Interfaces connect your software to other external systems. Integrations help increase the capabilities of your software.
First, you have to figure out what APIs your software needs to connect with. Because there are numerous APIs out there and definitely yours does not require all. Some of the common APIs most insurance software have are payment gateways, communication services, insurance databases, and fraud detection tools.
Once you know what you need, select the service providers who provide you with API keys or tokens. These keys help authenticate your software and access APIs securely. As you have written code that links API to your software, this integration process will go smoothly without any interruptions.
Here is a list of important APIs and third-party integrations that are commonly used in insurance software.
| Category | APIs/Third Party Integrations |
| Policy Management | Duck Creek Policy, Guidewire PolicyCenter |
| Claims Management | ClaimCenter, CCC International Solutions Claims |
| Payment Gateways | Stripe, PayPal, Authorize.Net |
| Customer Support | Zendesk, Salesforce |
| Underwriting | Swiss Re, Verisk, LexisNexis |
Insurance software development demands more regulatory compliance. If you want your software to be successful in the long term, then it must conform to all laws and standards in place. First, you have to know the regulations applied to your software.
These vary from region to region. But some of the common regulations include GDPR, HIPAA, etc. These are data protection laws that state guidelines on the storage and sharing of customers' personal data.
If your software complies with international regulations, then you have no reason to be concerned with legal conflicts, even if you intend to work in different regions. Regulations not only protect your business from legal risks and fines but also give customers trust that whatever you are legally sound. However, these standards keep changing with time, so stay updated on new laws, guidelines, or updates.
At this stage, you might have a functioning version of your insurance software, but it may not be perfect yet. To make it flawless, it requires further testing and refinement. Insurance software involves various personal details and sensitive data. Even a small mistake can lead to data breaches or system failures.
So it is important to ensure the software is free of errors and works perfectly before it goes live. Conducting multiple tests such as functional, performance, security, etc helps fix such issues and make it fully functional as well as secure. Use automated testing tools to check for issues. Also, go through the software manually to detect flaws that automated tools might miss.
Keep in mind that testing is not a one-time process. You need to retest the software until all issues are resolved. But if you do proper testing in the beginning, you can avoid major errors that need costly fixes later on.
This is the last step in the development lifecycle. But before deploying, make sure all previous steps are complete. Set up a secure and reliable server or cloud platform to install your software. But cloud-based deployment is a preferred choice as it offers easy updates and flexibility you require.
If you are just replacing the old system, carefully transfer all the existing data to the new software through data migration. This process helps you avoid data loss or inconsistencies. Once everything is ready, the software can be made live.
Deploying in phases is yet another likable option. This involves rolling out the software to a small group of users before making it available to everyone. This phased approach is called a pilot launch which helps you detect any issues before full deployment.
From our guide on insurance software development, you may have realized that insurance software is more than just a tool. It can completely transform your business. Whether you are just starting or looking to scale your business, investing in this innovative software solution can be your go-to choice.
Developing insurance software independently or with an in-house team can be a complex task filled with challenges. It requires expertise in multiple areas such as design, programming, testing, and more skills that not every individual or team may possess. This is where partnering with an experienced insurance software development company can make all the difference.
There are several approaches to consider for your development needs. A project can either be outsourced to a leading software development company that has the right industry knowledge and technical expertise. Alternatively, your company can recruit experienced software developers who can effectively work in cooperation with your in-house team. However, leveraging the expert is the best choice in terms of quality and terms.
Maticz is a top insurance software development company with a proven track record of offering innovative software solutions for the insurance industry. We have years of expertise in building Fintech and InsurTech products irrespective of complexity and financial scope. Our team of experienced and skilled developers handles every aspect of your project right from initial consultation to final deployment. We develop highly functional insurance software to meet the needs of businesses from various niches. Collaborate with us to modernize your business with custom insurance software solutions.
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