Insurance software development

We are an insurance software development company specializing also in fintech, blockchain outsource software development and outstaff developers and tech consulting. For over five years we have been offering insurance industry software development services. Insurance product development, risk management, front office automation, contract management, reinsurance systems, loss and income accounting are all the most frequently optimized processes in the insurance companies. From interacting with customers to calculating key performance indicators, Boosty Labs as an experienced software developer for insurance allows the client company to receive a product created according to the established requirements and consisting only of the number of necessary functions and tools.
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The reasons for software development for insurance industry

01.

New realities have generated intense competition that requires companies to implement cutting-edge technology solutions.

02.

The most critical issues for the insurance business are the motivation of the company's specialists and hired agents: how well they know the products offered by the organization and what is the degree of their interest in increasing the number of sales.

03.

There’s a  necessity to organize an operational turnover of funds and at the same time protect yourself from fraudsters.

01.

New realities have generated intense competition that requires companies to implement cutting-edge technology solutions.

02.

The most critical issues for the insurance business are the motivation of the company's specialists and hired agents: how well they know the products offered by the organization and what is the degree of their interest in increasing the number of sales.

03.

There’s a  necessity to organize an operational turnover of funds and at the same time protect yourself from fraudsters.

Application of blockchain technologies in the insurance industry

Experts argue that a large-scale optimization of processes will take place in the insurance industry soon and blockchain will become even more widespread. This is due to the fact that the blockchain is able to provide transparency, efficiency and security at every stage of the transaction.

Blockchain was originally created to facilitate cryptocurrency transactions (such as Btcoins), but this is not the only use case.

Blockchain-technology is used to innovate in all aspects of insurance, including:

  • underwriting;
  • handling claims;
  • detection and prevention of fraud;
  • development of new products.

Blockchain is expected to be increasingly used to address two of the biggest challenges in the insurance industry: claims and payment processing and agent commissions.

The use of blockchain technology in building various solutions for the insurance industry makes it more reliable and transparent for customers.

Blockchain allows you to open up completely new opportunities in insurance and significantly modernize this industry:

Event-based smart contracts help provide automatic insurance benefits, reduce risks and improve overall customer service.

The efficiency of blockchain systems makes markets decentralized, completely digital and more secure, reduces processing time and transaction costs.

Refusal of intermediaries and transparency of public blockchain platforms, increases trust in the system, significantly increases the speed of work and reduces its cost.

The high speed of transaction processing makes it easier to select the individual cost of services and makes the market more flexible.

New types of insurance and the joint economy appear and develop: P2P insurance, microinsurance, point (parametric) insurance and others.

The availability of insurance services is increasing and more and more users are gaining access to the market.

Insurance industry software development services

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Lack of permanent communication between the insurance agent and the user

Solution: a mobile direct insurance system expands the client audience of the insurance agency, and provides it with constant communication with the agent through a mobile application.

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Optimization of business processes

A solution that provides continuous digital processing of key business processes across all modules/components.Uniform cross-components can be used for cross-departmental functions, resulting in significant economic benefits and less effort in implementing and maintaining long-term software releases.

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Compliance with reporting requirements

A solution that allows insurance companies to create a full range of current and future mandatory national and European reports. The tool provides an open structure for integrating any other reporting templates.

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Optimization of risk management processes

A solution that has easy-to-use, customizable capabilities to streamline risk management processes, allowing an organization to prioritize risk.

Insurance industry software development benefits from Boosty Labs

Improving the accuracy of risk assessment

Improving the accuracy of risk assessment is the most important factor in the successful development of an insurance company. The development, implementation and effective use of software designed to carry out an objective and prompt search and analysis of marketing, economic, financial and social information in real time allows employees and managers carrying out operational activities and developing a development strategy for an insurance company to significantly increase the number of speed and accuracy of information processing, calculation of insurance risks and premiums, assessment of the feasibility and profitability of the provision of specific insurance services.

Possibility to increase the number of clients

The implementation of the developed software allows insurance companies to significantly improve the quality of service and reach a qualitatively higher level of work with clients. The use of a system for analytical processing of customer data and information, information databases of large volumes and the latest high-speed customer database management systems allows employees of insurance companies to significantly improve and speed up the execution of contracts for the provision of insurance services and offer their customers a modern and high-quality service.

Improving the quality of customer service

Installation and effective use of modern software, developed using the latest methods and technologies for customer service, in insurance companies, taking into account their specifics and all the features of interaction with customers used in insurance activities, is one of the most important conditions for improving the quality of service and attracting a significantly larger number of potential clients of the insurance company.

Increase in the number of insurance services

An important condition for a successful business in an insurance company is the correct range of services provided by types and characteristics of insurance. Timely and correctly to determine the priorities for the types of the volumes of insurance services provided to clients is helped by conducting research on the conjuncture of the insurance markets, using the appropriate software developed to collect and analyze market information. Full use of software for organizing activities in an insurance company allows you to quickly and efficiently vary the list and volumes of insurance services provided, in accordance with the market conditions and capabilities of the insurance company.

Increasing the profitability of the insurance company

Objective use of the developed analytical, informational, statistical software in the activities of the insurance company allows the company's management to receive and analyze more complete information about the results and assessments of the opportunities and prospects of their business. This makes it possible to optimize the work of the insurance company, reduce costs, increase profitability, increase stability and competitiveness in providing its clients with various types of insurance services. Development and implementation of modern software in the processes of conducting insurance business is the most important factor in achieving success.

Digitalization trends in the insurance industry

As they enter the new decade, insurers are looking for a way to gain a strategic advantage in the industry. The adoption of technologies powered by big data, the Internet of Things, and artificial intelligence can have a huge impact on insurance companies, laying the foundation for increased revenue and future innovation.

The insurance industry is evolving with excellent opportunities to drive change. The leaders of tomorrow are already implementing cutting-edge technologies using Big Data, artificial intelligence (AI) and automation. While the industry spans many sectors, insurance companies operating in every sector – from healthcare to auto insurance – can benefit from emerging trends.

What are the key technology trends for 2021? How are they integrating into the health and life insurance, auto, and real estate insurance sectors?

Health and Life Insurance Trends

The Covid-19 pandemic has caused many health problems. Insurance companies had to quickly adapt to the situation.

Customers are used to personalized social media ads or customized bank notifications. While the health and life insurance industries are undoubtedly different from financial institutions, customers still expect insurance companies to know them inside out. As a result, insurers must rethink their products to attract new customers and keep existing ones. Accelerating innovation requires insurers to adopt a new customer-centric approach.

In the health and life insurance sector, initiatives that encourage healthy habits are gaining popularity. These initiatives also improve the relationship between insurers and policyholders as they must work together to achieve a common goal of better health. Insurers can use wearables, big data, and the Internet of Things (IoT) to monitor, promote healthy lifestyles, and support customer health.

From the outside, asking policyholders to share their data may seem intrusive, but research by Morgan Stanley and BCG shows that customers are willing to share data in exchange for incentives.

Insurance company John Hancock has come up with the John Hancock Vitality program, in which it rewards its clients for a healthy lifestyle. It also developed the John Hancock Vitality Plus policy, which offers customers discounted wearables and then rewards for healthy living and even the opportunity to save up to 15% on insurance policies by meeting activity targets.

Big Data Simplifies Processes and Improves Personalized Experience

An essential requirement for accepting personalization is that you have enough data about your customers and be able to decrypt that information. Data mining, artificial intelligence and machine learning are unlocking new opportunities for health and life insurance companies to improve performance and predict customer behavior.

Big data provides valuable insights, enabling companies to be more aware of how best to serve their market. Life and health insurance companies need to be prepared to respond to technological change and realize that one-size-fits-all solutions are no longer suitable. Clients are looking for innovative solutions, and as they become accustomed to new digital technologies, their views on the disclosure of personal information are also changing.

Blue Cross Platform Blue Shield Axis (BCBS Axis) leverages big data to empower patients, employers and healthcare providers to make better healthcare decisions. BCBS Axis allows you to view and compare 90% of all doctors and hospitals in America. The system also helps healthcare providers improve and employers provide the best possible solutions for their employees.

Insurance company Ladder uses big data to simplify the insurance claim process. Using simple questions in an online form, Ladder combines AI and data mining technologies to eliminate the need for time-consuming doctor visits.

Haven Life uses Big Data to offer customized pricing based on the performance of the MyLifeScore software. The score is determined by answering ten simple questions. Using 48 variables (including age, family, and weight), Haven Life calculates risk based on collective analysis and information from nearly a million life insurance policies over 15 years.

Telematics promotes personalization

Telematics brings together devices that track different behaviors. This technology can do everything from counting steps to monitoring sleep and checking your activity level. The integration of telematics into wearable devices provides health and life insurance companies with up-to-date customer statistics.

The original purpose of telematics was to monitor drivers on the roads. However, health and life insurance companies are expanding the use of telematics in other critical areas such as healthcare.

John Hancock offers interactive life insurance using wearable devices: Fitbit, Apple Watch – in conjunction with the company's application. The company collects data on fitness activities and offers various bonuses, perks and discounts for maintaining healthy habits.

Auto insurance industry trends

Ride-sharing, telematics, online vehicles and other technologies are driving car insurance innovations. This rise in digitalisation presents tremendous opportunities for auto insurers to lower insurance claims and meet the demand for new mobile services.

Big data and AI enable personalized offerings

Auto insurers are adapting to new trends in insurance, from electric and automated vehicles to car sharing and integrated technologies: the Internet of Things, telematics and AI. Telematics, AI and the Internet of Things are helping insurance companies work with policyholders to prevent vehicle problems before they occur. These technologies provide benefits to both the policyholder and the insurance company. Customers benefit from extending the life of their vehicle, which saves them money in the long run. At the same time, insurers reduce the number of insured events and improve the quality of customer service.

Metromile uses telematics to offer insurance policies that cost based on how long a customer drives their car. By offering policies on a pay-per-kilometer basis, Metromile requires policyholders to track their driving time using a small telematics device that sits on the car's dashboard.

Discovery, an insurance company in New Zealand, offers a life support program that distributes rewards and benefits to drivers based on customer behavior. The company also uses route tracking technology to determine exactly when the driver was in an accident.

Carrot uses a telematics black box or mobile app to record the driver's journeys and track their habits. Both devices track the driver's journeys and provide an indication of mileage and driving style. In exchange for providing data and getting a good driving rating, drivers earn points that can be redeemed for gift cards.

Safeco Rewind aims to help policyholders keep the cost of insurance policies low by offering drivers who make minor driving errors a tracking device for four months to ensure they can drive safely. After the company has collected enough data to prove the driver's conscientiousness, it can decide to return the previous policy price (for example, before the accident).

Progressive uses big data in its snapshot program to personalize premium rates based on how well customers drive their cars and how long the car is in use. The application also integrates monitoring functions that provide driving advice, and when a customer drives his car as a passenger, the program allows setting the appropriate status.

Real Estate Insurance Trends

Everything evolves and changes: from how we interact with real estate to smart home technologies and innovations in sales and rentals. However, the biggest change in the real estate insurance industry is how insurers can integrate their services with smart home devices. This could give insurers access to new data, albeit with an increased security risk.

Smart home technologies at risk

While smart homes are convenient and offer many benefits to policyholders, including the ability to control lighting and security, they also offer insurers access to additional data. For example, if a customer claims to have a security system installed and receives a discount for doing so, smart home technology can check if the system works.

While smart devices offer many benefits in terms of property protection, convenience and security, they are still emerging technologies with questionable security, making them the most vulnerable points in home networks. These weaknesses in IoT systems are dangerous for policyholders and insurance companies.

Liberty Mutual's Dwellbeing monitors policyholder homes. It can monitor temperature conditions, the condition of the plumbing and assess risks by sending notifications about the need for maintenance at home.

AI and machine learning

Insurers can use AI and machine learning to make accurate property predictions based on property history, location, repair status, and demand. Using AI and automation to evaluate data can turn a lot of data into useful information.

Lemonade, a high-tech insurance company, uses its MAYA bot, which is based on RPA (Robotic Process Automation) technology, to automate claims, assessments and manage claims from customers.

Liberty Mutual uses big data to develop innovative tools for policyholders, including the Total Home Score, which evaluates properties based on location, local price trends, area, traffic patterns and noise levels.

Drones can automate damage checking

Drones are increasingly being used to create virtual views, 3D walks and aerial imagery. But they also allow insurers to access previously isolated locations and hard-to-reach locations to assess and calculate risks.

This data can be used to validate the cost of insurance policies, reduce inspection costs, estimate the true cost of claims and reduce insurance claims fraud. For example, a drone might take a photo or video of the roof of a building so that insurers can take a close look at the damage before paying an insurance claim.

Allstate Insurance Company uses drones to inspect covered property, including homes, cars and other insured risks.

GFA Generali Insurance used drones to inspect more than 300 buildings for damage after Hurricane Irma hit the island of Puerto Rico. The inspection, which would have taken a team of humans several months, took the drones just ten days.

The State Farm Insurance Company has its own department for the use of drones for property valuation. 

Conclusion

The internet of things, big data and artificial intelligence are gaining ground in the health and life insurance sector. These new technologies offer insurers the opportunity to personalize their services and enter new markets by working together with policyholders.