The insurance market sector is amazingly huge. Leading companies feature exorbitant amounts of assets as the world top-scorers accumulated more than $1 trillion in 2018 per brand! Moreover, other 11 companies featured total amounts of $500+ billion per team. Consider also that there are a lot of customers all around the world that still don’t have proper personal and business insurance, especially in the developing countries. Hence, businessmen and individuals can face an important question: which insurance software vendors are the best?
In this guide, we will disclose the main idea of insurance software used by insurance companies so you will understand what apps your team needs exactly. Some insights into the development process also should help in understanding what’s going on. Modern digital tools can boost your profitability and attract more clients. Thus, we also want to look at the list of top-rated vendors and list suggestions on choosing the best tech partner. Let’s begin with the basic hints related to insurance applications!
General insurance software solutions
Insurance companies can’t do without digital tools to be successful, competitive, and profitable. Of course, you can use Excel sheets to track payroll and call your clients via phone but that’s a pretty outdated approach. When market leaders deliver cashless mobile-only solutions and real-time processing platforms based on blockchain and AI, do you really want to keep using Excel?
It’s a good idea to add some innovative stuff, trust us. Modern insurance systems can greatly increase your results and form a new brand image. Depending on the target customers, you can vary the positioning strategy but the very idea of automated and efficient insurance tools must become a core goal. Thus, you may want to know which apps are available for insurers and how to use them properly.
Main types of insurance systems
When it comes to the exact classification, it’s barely possible to reveal all the types. The catch is that different insurance software vendors, as well as agents and brokers, have own vision on the categories. Here, in DICEUS, we also have our understanding. The scheme may look a bit complicated but we will move through each type.
To start with, there should be a big management platform for the entire agency. Large teams purchase ERP solutions but the same concept is viable for other companies regardless of the size. Means, you should have a tool that connects and unifies all processes to get a clear understanding of each task, request, issue, and solution.
In terms of global agency management, companies can be interested in two specific types each of which may feature some subtypes:
- Personal and corporative L&H insurance. These systems cover all tasks of life and health insurance agencies. They’re focused on gathering and protecting personal medical data of clients, cooperating with clinics, and paying for therapy.
- Health insurance – covers expenses on regular treatment and accidents.
- Permanent life insurance – pays benefits regardless of death’s time.
- Term life insurance – pays benefits if death occurs within a specified period.
- Travel insurance – delivers policies for tourists, including life and health ones.
- Comprehensive P&C insurance. Instead, these applications are suitable for property and casualty insurance firms. Tools help to protect assets like cars or houses. Thus, they collect info about these core objects instead of their owners.
- Business poverty insurance – compensates damage to business stuff.
- Vehicle insurance – pays compensations if a vehicle is damaged or destroyed.
- Housing insurance – works similarly to the previous point but for homes.
- Work insurance – pays benefits in case of injury, disability, retirement, etc.
Functional areas of apps
Modern applications for insurance teams should cover an impressive variety of functions. Some of them are unique for certain industries, e.g. catalogs of vehicle numbers for car insurance teams. Simultaneously, there are nine core modules focused on general management areas:
- Dashboards. Arrange data to get informative reports.
- Documents. Create various reports in multiple formats and analyze KPIs.
- Carriers. Compare different insurance providers and partners in catalogs.
- Claims. Control incomes and losses, gather data and analyze it.
- Contacts. Save and track core customers info, generate and send emails.
- Policies. Automatically create, renew, and deliver policies to clients.
- Products. Create, save, and exchange product definitions with graphic elements.
- Ratings. Set the most efficient prices based on several indicators.
- Risks. Evaluate strengths, weaknesses, opportunities, and threats.
- Tasks. Track and set tasks, check time spent and organize dashboards.
Secondary general insurance software solutions can include cloud-based systems for file storing and sharing, email and/or VoIP tools, office suits, collaboration messengers like Slack, training platforms, marketing modules, and backup stuff.
Development of software used by insurance companies
As for the creation of insurance tools, the process is rather similar to the development of other programs. We distinguish two polar approaches:
- Off-the-shelf. Adheres to the principle «Create Once Deploy Everywhere» because one app with tiny changes is delivered to all customers.
- Custom. Focuses on the idea of unique software for each client so all the custom products are exclusive and unlike each other.
The first type of vendors features tools developed some time ago and updated as needed. Hence, the development itself isn’t the most important part because authors already have working apps and need to sell them. These teams focus on deployment, data validation, compatibility, and other non-programming parts of the process.
Instead, custom companies cover the entire cycle. First off, they begin with consultations and market research, then agree on the required modules and functions, and, finally, develop a product. Most likely, teams stick to Agile methodology. After the launch, devs also handle training, support, and maintenance. As a result, you get a 360-degree service.
Another popular approach to software development used by insurance companies refers to outsourcing. This idea provides for delegating certain tasks to external foreign teams. For example, you can manage the project and work with customers in the USA but outsource tech development to Eastern Europe where prices are lower. We will focus on it more in the next part.
Choosing insurance claims software vendors and distributors
Well, let’s jump to the main part, finally. Is it possible to find the best software vendor to develop your own insurtech solution? Surely, it is. But it’s essential to learn about developers, differences among them, and services provided.
First things first, we think that outsourcing is a great idea for the insurance industry. With it, you can cut costs but keep performance on the required level. Access to the global market allows finding the right specialists quickly. If you want to get a next-gen solution, e.g. based on machine learning or blockchain, opt for developed economies. In its recent report, Bloomberg lists the most innovative development systems by country. South Korea leads the game while Germany and, surprisingly, Finland sit at the next two positions.
However, if you focus on cost reduction without quality loss, we’d suggest outsourcing to Eastern Europe. In 2016, HackerRank evaluated programmers and Six countries from this region were in the top 20. Moreover, in 2017, Ukraine was named offshoring destination of the year by GSA UK. Other areas to consider include Southeast Asia and South America. Be sure to compare prices and results because, sometimes, you risk getting too poor software with the need for costly fixes/upgrades.
Further, check a simple scheme with key points to know how to find top-rated insurance software vendors.
- List the company’s needs. Divide all the features into three categories: essential, demanded, and desired. Look for vendors that can deploy at least two first classes. The third one may help to choose between two equal companies.
- Set up the budget. Consider everything, including initial research costs and up to scaling issues with upgrades. You want to know the highest amount you’re ready to spend. Remember that projects tend to exceed budgets often.
- Check the vendor’s portfolio. It’s important to know that the chosen company can cope with your tasks. Explore existing insurtech solutions, look at skills and languages used during their development. Fintech software is viable, as well.
- Talk about security. Insurance companies must protect their clients’ data perfectly regardless of the market niche. Thus, you should find a dev partner that delivers safe products without critical vulnerabilities but with all required compliances.
- Evaluate data science experience. In the world of Big Data, skilled vendors have to deliver relevant solutions. Insurance teams use data all the time so you want to get good storage plus powerful computational systems with infrastructure.
- Build long-term partnerships. As a rule, custom developers that not only create apps but also support them, want to cooperate with clients in the long run. This approach is profitable for insurers, too. It mitigates risks and helps to improve performance.
Car and vehicle insurance software
Moving to examples, we propose to start with auto insurance software developers. These teams focus on property and, in particular, cars and other vehicles owned by clients. Apart from global agency management applications, there are specific tools for this given subcategory. For example, Software Advice lists 23 brands, e.g. DRC or Surefyre.
Our custom team also can deliver a reliable app for vehicle agents and brokers. Our insurance systems can be tailored to various needs and wishes. It’s not a big deal to add car catalog, integrate email marketing tool for quick delivery of proposals or deploy a multi-carrier quote comparison platform.
Life and health insurance software
Did you know that L&H sector in the American insurance industry in 2017 was accounted for 52%? Right, this niche occupies over half of the entire market! As for these vendors, already mentioned website features 17 vendors that create tools for life and annuities projects plus 15 names in the field of health insurance.
DICEUS handles both approaches, as well. If you need a simple app for managing claims and payments, we can do it. If your large enterprise requires more complex ERP software, we can do it, as well. Data security and protection is one of the most important parts of the development process so you and your clients shouldn’t worry about leaks.
Custom products from our company
Let’s talk a bit more about our team. In DICEUS, we build a new way of communication between developers and clients. You won’t find hourly rates or redundant fees. Instead, our company focuses on quote-based pricings and initial contracts that include costs of all services so it’s easy to evaluate final projects’ costs. You are free to choose among all possible options, from business intelligence and analysis to development to training and updating.
For insurers, our experts can deliver any of the mentioned tools. Our clients are small, medium, and large business that purchase custom solutions for insurance management, sales, customer relationships, resource planning, and so on.
Let’s also quickly rewind the most important moments of this guide. Using this FAQ, you can grasp key ideas without returning to the main body.
What does insurance software mean?
It’s a wide range of digital tools designed for requirements of insurance agencies and carriers. The software covers documents, claims, contacts, policies, risks, and tasks.
What are the best insurance software vendors?
As for prepackaged software, we’d suggest the most famous and reputable teams like Salesforce or SAP. Among custom companies, DICEUS is the best. 🙂
How to spot the most professional development team?
You should evaluate the skills and capabilities of the company by reviewing delivered projects and testimonials. Don’t forget to communicate with the team regularly.
Why custom applications are better than COTS?
Bespoke software provides for much better market advantage because competitors simply can’t get access to your unique apps. Also, it comes with the required modules only.
Which fees vendors feature?
As a rule, expect to pay for the software itself, the deployment and connection of other systems, staff training, market analysis, and further support.
We’re happy to create cool software for committed insurers. And we cheer for your market success not less than you because it enables new options for long-term profitable cooperation between our teams. Feel free to ask us anything if you still have questions. Remember that the best insurance software vendors are those that meet your demands completely. Thus, custom devs are win-win.