The financial services and insurance sectors are two industries that have recently gone digital. Due to the complexity of internal procedures and tight legal requirements, businesses have long postponed using handy new technologies in their workflow. As a result of service issues, consumer satisfaction has declined.
The growth of insurance apps development has been influenced by significant client discontent with insurance services and a lackluster level of automation of back-office tasks. However, there are still other challenges that such software developers must overcome, which we will go over in this post.
Difficulties in software development for the insurance industry
Developers of automated insurance systems are constantly improving their software products, expanding their functionality, implementing an integrated approach to information processing, and using new information technologies. However, insurance companies need help with using and developing information technology. There are several reasons for this.
Firstly, the instability of domestic legislation in insurance. Only stable processes can be automated. Depending on the region, developing and managing such a program may differ.
Secondly, due to the significant differences in the activities of insurance companies and the dynamic development of the insurance business, insurance companies are a complicated object to automate. Firms operating in this market can only cover some possible options for the functioning of an insurance company. On the other hand, if such a product were created, it would be costly to purchase and operate.
Moreover, technology is moving forward. AI is actively used in creating applications; the insurance business is no exception. AI trend drives a rise in students wanting to study computing and more and more such technologies are being used in the development of insurance software. Blockchain and learning machines are also used here, so specialists who can implement these technologies in software are needed.
Thirdly, and this is a problem not only for insurance companies, the need for a legal framework for supporting software products after the sale. Offering modern industrial automated systems and promising consulting and technical support, developers practically leave their customers alone with problems. And there are many such problems, for example:
– a promise to update the system. Therefore, it is essential to contact reputable companies with extensive software development experience and many positive reviews.
What to look for before starting work
Set specific automation goals. The overall goal of this process is to simplify employees’ work, make it more efficient and correct. But each company has its own problems that the introduction of a digital management system helps to solve. Pinpoint significant weaknesses in your work that must be addressed as soon as possible to help you apply automation more effectively and accurately measure results.
Choose the system you will use. Many companies are turning to 1C products for automation. Automation solutions must be working, proven, widespread, and reliably supported by a partner network in different cities. These conditions are met by 1C programs. When cooperating with this company, you can be sure that the products will only develop and will continue to be supported over time, that the partners will assist in the implementation, and will accompany the customer throughout the entire period of using the programs.
Read: How to Save Money By Tracking Company Expenses
Why do we need software development for insurance?
This is a relatively new niche that combines insurance and technology. This fast-growing field has the potential to transform the traditional insurance system. According to a BusinessWire report, global insurance technology market revenue was estimated at $5.48 billion in 2019 and is projected to reach $10.14 billion by 2025.
This industry uses blockchain, artificial intelligence, and machine learning technologies. Blockchain provides a secure and transparent way to store and transfer data, while artificial intelligence helps automate and optimize insurance processes. Advanced data analysis and machine learning algorithms provide a more accurate risk assessment. So, the latest technologies allow you to create a pumped application. But therein lies the complexity of developing this software.
Conclusion:
There are many features in the insurance niche. For example, insurance applications must be remarkably accurate. They have their own unique structure. There are specific rules for insurance that must be followed, which may differ depending on the region. Therefore, developing software for the insurance industry is a rather complicated matter, but at the same time, it is necessary for the competitiveness of the business itself. Such solutions can make your business more automated, help solve your problems, minimize risks, and even close specific customer objections, allowing you to withstand ever-increasing competition.
About the Author
Olga Vinichuk – Business Analyst and Insurance IT Consultant
Olga has built a vibrant career at ScienceSoft as a business analyst and insurance IT
consultant. She participated in ScienceSoft’s 11 major insurance projects, guiding 8 of them
as a leading business analyst. As an insurance IT consultant, Olga shapes the unique
solutions that digitally transform underwriting, claim settlement, policy management, and
compliance monitoring workflows. Olga is also involved in ScienceSoft’s outsourced product
development projects, where she helps SaaS insurance companies turn their high-level
product concepts to fully-functional solutions.
