FinTech
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Table of Contents
Modern insurance management apps completely reimagined the way businesses provide services, from better customer experience and transparent, streamlined operations to enhanced analytics and robust security measures.
See what stands behind this shift and how you can empower your company with technology, reach out to a wider customer base, and cut operational costs all at once.
The tendencies in the insurance software market look promising.
The global insurance software market was projected to reach $43.24 billion in 2024 and is expected to grow to $59.57 billion by 2033. North America holds the major market share (31%) due to the developed technological infrastructure and the presence of key market players.
The key market drivers include:
Many insurance companies keep their systems on-premise due to greater reliability, data security, and control, but this trend is slowly shifting towards cloud-based solutions adopted by small and medium businesses.
In 2023, on-premise solutions captured 64% of the global insurance software market. While established insurance firms prefer to invest in on-premises infrastructure, the newer ones choose the cloud for its cost-efficiency and accessibility.
New technologies contribute significantly to the insurance field. The rapid adoption of blockchain, the implementation of AI-driven chatbots, predictive analytics, robotic process automation, the adoption of cloud-based solutions, and big data analytics drive the industry forward.
Legacy systems are the major constraints on market growth. Old-fashioned on-premises solutions should give way to cloud solutions, security threats must be countered with modern, AI-based tools, and document management and workflows have to be automated.
Challenging data migration and troublesome integration with other systems slow down growth and put customers' data at risk. The solution? Modernizing legacy systems or completely replacing them with reliable, secure systems with the help of professional insurance application development providers.
Another blockage is regulatory compliance: the industry is highly regulated, and regulations vary significantly among countries and regions. Adherence to the rules includes anti-fraud measures, data protection, and long-term financial sustainability.
For insurance companies that expand their services abroad, this means complying with local legislation and adapting their software for future changes. This leads to regular spending on system updates and staff training, putting more pressure on smaller firms.
As for the functionality, the key insurance software features usually include:
Overall, insurance app development offers the opportunities for building modern, efficient products that not only optimize and automate operations, but also deliver an outstanding personalized customer experience.
With the growing market and a course toward digital innovation and modernization, the insurance field transforms to become more convenient, personalized, and relevant to its customers.
Insurance application development brings undeniable advantages for businesses (insurance companies and healthcare providers) and customers. Let’s explore these benefits.
No modern software comes without automation. For insurance applications, it eliminates manual work, accelerates data management, and helps to detect fraud, making business processes fast, scalable, and error-free. Reduced manual work leads to better compliance and more consistent data collection, letting your employees focus on strategic tasks.
Modern insurance platforms enable faster claim settlement, better understanding of customer needs, and a personalized approach to every single client. Seamless communication and tailored service improve customer-agent relations, increase customer retention and satisfaction, and raise sales.
Digital insurance solutions get you access to a wide customer base and strengthen existing connections. Insurance software technologies help to reduce loss-adjustment expenses, create targeted, cost-efficient marketing campaigns, and use self-service tools that do not require human involvement.
All these features and new opportunities decrease operational costs, better allocate resources, and adjust your team size without sacrificing service quality.
Real-time data processing and analytics help managers make better decisions instantly, whether related to pricing, risks, or capital management. Automated reporting helps share the results with investors and stakeholders, visualize complex data in an easily readable form, and react timely to market changes.
Specialized insurance software helps businesses meet industry regulations, secure customer information, and prevent data breaches and cyberattacks. In addition to must-have security features like multi-factor authentication, data encryption, role-based access and logging, the solutions integrate with intrusion detection/prevention systems (IDS/IPS) and AI tools to identify suspicious behavior early.
Custom insurance software development allows you to craft high-performance, modern, and secure products that meet the demand for fast claim processing, transparent pricing, and personalization.
Why not build one for your company?
Besides classic solutions that almost any business needs, like CRM, ERP, and document management software, the insurance field requires specialized programs that are tailored to its operations, processes, and workflows. Here are some of the most common examples.
This type of insurance solution includes features like flexible engagement models, automated damage estimation, automatic policy status verification, and configurable workflows. You can submit claims from different channels (portal, mobile app, e-mail, agent-assisted), ad attachments, and set auto-fills for policyholders.
Claim management systems are praised for settlement accuracy, reduced loss adjustment expenses, and faster claims resolution, helping businesses operate efficiently and reduce administrative overheads.
Such systems help automate insurance policy management throughout the whole cycle, from data entry to termination. They allow users to create policies based on pre-approved templates and rules, choose suitable policy types, and manage and securely store related documentation.
Modern insurance web and mobile applications can track regulatory compliance and craft records for audits. Preset rules, automated checks, and document tracking also enhance compliance with legal and internal standards.
Such solutions work as a centralized hub storing insurance documents, allowing for updating information, uploading documents, and approving or rejecting applications. These are platforms where customers, underwriters, partners, and agents can manage insurance-related services.
As a self-service tool, insurance portals reduce workload on support and administering, improve customer experience, and enhance transparency and trust. They seamlessly integrate with CRMs, claims systems, payment gateways, and communication tools and update data in real time.
Underwriting helps businesses evaluate the risks of insuring an individual's life, health, or property, like a home or car. With insurance app development services, you get a solution that automates underwriting and application processing, facilitates task management, and has embedded AI data analytics capabilities. You can create rules and policies that will be automatically applied during the underwriting process.
Reinsurance software manages treaty and facultative agreements, premium and claims processing, financial settlements, compliance, and reporting. It is used for assessment and pricing of complex risks, monitor exposure, and automate financial statements and reconciliations.
Insurance mobile app development allows you to build tailored solutions that improve risk visibility, enhance regulatory compliance, and build stronger reinsurer relationships — all available from a smartphone or tablet.
Quoting software automates the creation of price quotes, significantly improving insurance accuracy of premium calculations. You can combine multiple insurance products and make bundled quotes, applying discounts and recommendations.
The solution easily integrates with other systems like contract management and claim settlement software, and seamlessly converts from quote to policy or contract.
Such software automatically identifies, assesses, and mitigates risks in real time. The algorithms detect fraudulent activities and help to avoid costly claims and disruptions, sending alerts or blocking suspicious transactions. The program can analyze historical data, set premiums, predict future losses, and adjust prices promptly.
Specialized mobile apps facilitate on-the-go task management, such as client visits, claims assessment, document collection, and communication. The agent stays connected with the central system and can see and upload the data from the mobile device. Insurance mobile app development allows you to build iOS, Android, and cross-platform solutions for wider customer reach and lets your agents work anywhere.
As insurance fraud remains a widespread issue: each year, insurance fraud drains at least $308.6 billion from US consumers. Fraud detection technology, used by 96% of the insurers, helps to identify suspicious activities, claims, and suspicious logins. The algorithms can also find non-typical user behavior, trigger alerts, and assign a risk score to every transaction or claim.
Such software seamlessly integrates with ERPs, CRMs, payment gateways, and claims processing tools, providing comprehensive protection from illegal activities.
It’s up to you what kind of solution to choose,depending on your business goals, requirements, and available resources. If you have custom workflows and unique processes, opting for custom insurance software development is highly advisable, as it can provide software that perfectly fits.
Сheck out the most popular solutions you can create to cater the individual needs of your customers.
Such applications provide services for vehicle owners, allowing drivers to manage insurance policies, file claims, receive coverage expiration reminders, and address customer service.
Car insurance apps come especially handy when customers get into accidents: they can take photos of the scene and upload them in the system, quickly file claims and get repair estimates, and get access to other related documents. Some applications also include car tracking and driver behavior monitoring, offering bonuses and personalized savings for good driving practices.
This type of insurance software provides services for real estate owners and users who have valuable assets like artwork, jewelry, and collectibles. Property insurance apps usually include features like policy management, claims filling, damage assessment, payments, and billing.
With property insurance applications, clients gain control, enjoying fast service, clarity, and ease, which helps minimize stress during crucial times like filing claims or managing their policies.
Business-oriented insurance applications feature services that encompass liability coverage, workers' compensation policies, and property insurance for organizations. Commercial software can also provide risk assessments, generate and share Digital Certificates of Insurance (COIs) with vendors, clients, or landlords, and easily access coverage limits and renewal dates, helping businesses protect their assets and employees.
This kind of insurance software safeguards tourists from unexpected circumstances during their travel, offering medical and trip cancellation coverage and emergency assistance in cases like baggage loss.
The key features of travel insurance apps include getting coverage tailored to trip dates on the go, information support on safe actions, links to emergency contacts, fast claims submissions, and 24/7 customer support.
In 2023, the life insurance software segment held a dominant position in the market with a share of 36% and 719 companies providing services in the USA. Approximately 51% of Americans owned life insurance in 2024, with the millennials who were mostly concerned about financial matters. The market is expected to grow in recent years, offering opportunities for established companies and new entrants.
Insurance app development services enable you to build a solution that helps users to choose the right policy, pay premiums, access financial planning tools, and review insurance contract terms and conditions. With an intuitive interface, ease of use, and eye-catching design, such apps increase customer loyalty, improve digital engagement, and reduce operating costs.
Health insurance coverage reached 92% of Americans in 2023, with employment-based insurance as the most widespread option (53.7%). Specialized apps give customers access to health and wellness services like appointment scheduling, online consultations, prescription management, and personalized health recommendations.
Health insurance software development equips your business with secure and scalable solutions that can track customer behavior, improve digital experiences for policy, and create more interaction touchpoints beyond claims.
Let’s say you want to launch your insurance software project. But where to start and what to expect? We offer a step-by-step guide that will navigate you through the main stages. You can also use it as a blueprint for your future endeavors, ensuring smooth project running, from planning to deployment.
At this stage, you need to do extensive research to define the state of the market in your particular country/region, examine your main competitors, and identify your target audience and their pain points when using insurance apps.
Based on this information, you develop your project requirements, describe the new app's main features, and formulate its unique selling points. This data lays the foundation for your future development project and helps you attract investors at early stages.
Now, you need to find a suitable development team. While launching the project in-house can be beneficial in terms of gaining full control over the team and budget, it has many downsides. The internal team is costly, hiring suitable experts takes months, and fast scaling remains problematic. Outsourced development, on the other hand, saves your money and time.
While many companies provide insurance software development services, it’s vital to carefully select the fitting partner. A mismatch might result in missed deadlines, budget overruns, and even product failure. So, how to select the right development partner?
Start by shortlisting candidates who fit your requirements. Select 5–7 vendors with domain expertise, strong reputation (including client reviews and industry awards), and suitable hourly rates. Then, discuss your product requirements and specifications with each vendor and get feedback on cost estimations, project duration, and needed resources. Choose the one that fits you best.
The design stage includes UX wireframing, developing the UI design of the app screens, and creating a working clickable app design. With the completed design prototype, you can not only test your business idea through demos, e-mail campaigns, or crowdfunding but also attract investors by showing how your product will look and function.
If you’re an InsurTech startup, building MVP before full-scale project development will be a great advantage in terms of product testing with a decent amount of resources spent compared to full-fledged development. Basic MVP can be ready in just 3 months (it may take longer depending on your requirements). After the market launch, you can collect user feedback, define future features, and refine the solution according to customers' expectations.
Your vendor that provides insurance software development services shares your risks and takes responsibility for timely product delivery. First, they make a project plan, define a schedule, milestones, deadlines, and deliverables, report documentation, and specify the scope of work. Then, your Agile outsourced team divides the project scope into iterations and refines the results until the goal is achieved.
The testing process starts with project requirements and continues at every stage. Each iteration includes testing, and the final product must pass the necessary checks before being released.
After acceptance testing, the product is ready to be launched. The team sets up infrastructure (on-premise, cloud, or hybrid), configures servers, databases, APIs, and security settings, deploys code, and your product goes live.
Insurance software development providers offer product support, maintenance, and new features development by request. They also can train staff on how to handle the new program, and fix bugs identified after launch.
The technologies driving the insurance app market have been in the spotlight for several years.
Today, modern software cannot be imagined without some of these technologies, as they provide sufficient benefits and competitive advantages. Consult experts to find the perfect tech combinations tailored to your business needs.
With a growing market and a course toward digitalization and innovation, the insurance industry is evolving to become more scalable, responsive to customer needs, and adaptive to market changes.
Under these circumstances, custom insurance software development services are becoming an exciting opportunity to build something flexible, efficient, and unique that will win customers’ hearts.
Looking for a provider? No matter business, travel, health insurance app development, or development for an insurance web application — NEKLO team is ready to handle projects of any type, size and complexity. Book a call, and our experts reach out to you within 24 hours!
US-based and operating globally, NEKLO spearheads digital transformation initiatives for businesses worldwide. We deliver software solutions complying with your market and legislation.
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