Insurance platforms exist for various industries starting from IT and ending with healthcare. Today, any tech insurance company focuses on providing highly effective products online. To stay competitive on the market, they should, however, know what core features their software must have and what additional functionalities it’s possible to get with custom development. In this article, we’ll talk about these features and options for you to be well-prepared to choose the best and the right software for your business.
Six Modern Solutions and Trends for a High Tech Insurance Company
Checking a claims status often needs writing several emails or making calls. Customers get nervous getting details from their insurance agents. Thus, it leads to a lower level of customer satisfaction. In the digital era, most people want to get insurance information online using modern tools which are able to give instant replies.
With regard to a great demand for high tech solutions in the insurance industry, some agencies and carriers modified their systems in order to comply with customers’ requirements and needs. They spent lots of money on information technology services to change the way they provide their services. However, a big number of these companies still find it difficult to modernize there software because of the complexity of their legacy systems and poor understanding of what innovative features and functionalities their clients want to use.
To properly identify what transformations should be made first, let’s find out what the main challenges of the insurance industry are. Here are some of the major problems the industry faces today:
- The complexity of processes inside insurance companies. Experts consider that automation could help simplify those processes and ease the work of people working in the industry.
- Clients don’t get the services they expected to get. Poor customer experience is considered one of the main reasons why people are not satisfied with the insurance agency.
- The lack of professionals working in the insurance sphere. Accenture admitted that only 2% of students want to work as insurance agents after graduation.
To meet the challenges, software companies use modern technologies for the development of new insurtech apps and systems.
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Solution 1 – Machine Learning
Stop writing and doing all the paperwork by yourself. Machine learning offers great solutions for insurance agents to improve their services. With processes automated, you can easily eliminate routine work and reduce operational costs. ML-based tools can help companies to enhance productivity and make customer services focus more on their client’ needs.
Automation allows for effective data management. Insurance industry workers won’t need to store, process, and share piles of documents. With digitalization, they will able to collect and process Big Data easily. Moreover, this will help avoid lots of human mistakes.
By automation claims management processes, ML will allow you to make decisions related to claims more quickly. With new tools, employees can quickly gather and analyze the information about accidents and make the data-driven decision.
Solution 2 – Social Media and The Internet of Things
The traditional way to assess risks is to use the data which is impersonalized. With modern technologies, more personalized data can be obtained with social media and different connected devices and wearables. With these things, people can get valuable insights into the state of their health (temperature, blood pressure, pulse, etc.). Insurers can learn about the customers’ lifestyles. Data from social networks can also discover different health risks.
Solution 3 – Telematics Insurance
Telematics stands for new means of managing car risks. Unique insurance products work as black boxes installed into cars. These comprise GPS, SIM cards, motion sensors, and analytics. The new software is able to monitor car location, speed, accidents, etc.
The platform processes the collected data and sends it via the Internet to the agency. Then this information is analyzed and added to the client’s account. Using telematics, insurance agents can track driver’s behavior and provide them with personal insurance programs developed in accordance with the data they received from sensors.
Solution 4 – Peer-to-Peer
P2P insurance is one of the innovative models in this industry. Here’s how it works – a group of people creates a mutual financial basis consisting of their shares. One of the main advantages of this model is that it doesn’t require any intermediary. People agree to cover all the risks by themselves from a mutual pool of shares.
When the coverage time comes to an end, people can get their money back. With the help of P2P insurance, people are able to cut their costs for insurance issues and avoid conflicts with agents.
Solution 5 – Internal Workflow Automation
By automating internal processes in an insurance company, you’ll be able to avoid piles of paperwork, underwriting, and manual data management. Automation in insurance business allows to manage risks automatically, provide better customer service using chatbots technology, manage claims and do lots of other activities. More in the image below.
Solution 6 – Digital Insurance
Apart from artificial intelligence which is already widely used for insurtech systems, companies can benefit from a great number of software solutions offered by software engineering companies. Let’s take a closer look at how modern systems work using an example of claims management processes in a healthcare organization.
A perfect claim management process is able to automate data sharing between a healthcare provider and an insurance company. Smaller private practices dealing with the healthcare provider can use image recognition patterns for digitizing their papers. Moreover, the software can estimate the payment and coverage for every single claim in accordance with the company’s policy. With such a system, you can detect fraud as well. When the claim is approved, people get their payments.
Cyber Tech Insurance Company: How to Choose the Right Software?
What Is Cyber Insurance?
Cyber insurance, also called cyber liability insurance, is a non-traditional type of insurance product which is built to protect companies from cyber attacks, breaches, DDoS attacks, and other attacks aimed at compromising sensitive data. It’s not as well-known as everyone would expect. So, let’s figure out what you can expect when we talk about cyber insurance.
When we think about insurance, we can distinguish two types of it: first-party and third-party. First-party is when insurance pays when something happens to you, when some sort of damage happens, or a tree falls on your car. Third-party is when you harm someone else, you run on someone else. You can get cyber insurance for any of those. Most people think you have the data breach, for example, and that’s cyber insurance that can cover it. But it’s much more than that. The types of data breaches are really wide. A lot of things, however, are uncovered. And, at the same time, a lot of things are covered. It depends on what you have and what you expect.
Image Source: Statista
What Does Cyber Insurance Cover Generally?
Here are the main things that cyber liability insurance covers:
Digital data loss is covered by a great number of insurance programs. This may include theft, damage, corruption of your data.
Income loss is also covered by lots of programs. If you lose some income because of system failures, you can get insurance payment.
Extortion losses are covered if hackers break into your system and threaten to act dishonestly with your data.
Reputation damage is a breach which can harm your company’s reputation. Some insurance programs cover the costs of marketing campaigns which are aimed at protecting reputation.
Software Features for Cyber Insurance
To provide security for any insurance organization, it’s necessary to identify the right technology and software tools like antivirus programs, firewalls, DNS filtering software, etc.
- Automatic updates
- Real-time scanning
- Multiple app protection
- Application level security
- Role-based menu
- Row-level (multi-tenant) security
- Single sign-on
- User privilege parameters
- User-specific data sources
- Application activity auditing
That’s only the list of possible features. To choose the right set of functionalities for your tech insurance company, find a reliable vendor and consult a team that has extensive experience in insurance product development.
Experts will undertake a comprehensive business analysis to identify the features and options that your organization needs most of all. They will provide you with a list of initial requirements and specifications to the product. As soon as you agree to start the development process, the team will develop an MVP (minimal viable product) which comprises basic/core features and functionalities needed for your business. Once you approve the set of core features, you can start brainstorming about the add-ons which can simplify the internal processes inside your organization or provide your customers with additional functionalities.
What Is Professional Liability Insurance?
Professional Liability Insurance can cover the failures of different experts like IT specialists, lawyers, architects, software engineers, etc. It may happen that some of your customers may accuse you of negligent or undelivered services, work mistakes.
Errors and Omissions Insurance Cost for Software Developers
Professional Liability Insurance is also known as Errors and Omissions (E & O Insurance). It may cover claims about software defects, errors, data breaches, missed deadlines, and other problems which a software development company may face. According to Insureon, software developers pay around $700-1,200 per year for this type of insurance.
The amount of money paid for this type of insurance depends on the size of the company and the industry it serves. For example, most small companies pay around $1,000 per year.
Image Source: Insureon
As you can see, architects and engineers pay the biggest price for the professional liability policy (around $3,000 per year). Media businesses pay up to $2,000. And the lowest cost os for accountants (around $1,000).
List of Standard Features for Insurance Software
The insurance industry is different from other business activities. It deals with people lives, health, professions, etc. Insurance covers various types of claims, from car accidents to professional mistakes. Let’s take a closer look at the core functionalities of insurance applications.
Good software should provide metrics indicators such as risks cost, loss ratio, and frequency on a different basis (gross, reinsurance, net). This option should also provide users with intelligent analysis and reporting functionalities.
Insurance systems should give the possibility to track underwriting decisions at the day they managers made them. Moreover, insurance agents are able to view and analyze financial results.
With a sophisticated system, you will be able to collect, process, and analyze all types of claims data. The built-in metrics allows agents and managers to track claims activities and manage those effectively.
Any tech insurance company must view and manage various risks parameters for their products. A convenient risk management functionality saves time and efforts for analysis. It’s better when you have software with an unlimited number of parameters to view and analyze.
Accounting software for insurance brokers allows for effective reporting and managing detailed data about currency transactions. Usually, you can customize these functionalities with the help of a system provider or developer.
This feature ensures the effective handling of documents for different modules across the insurance platform. With this solution, you’ll be able to perform analysis, build different types of reports, customize your reports, etc.
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As you can see, there are different types of insurance products but all of them have some similar features. If your company needs a more complex product, you’d better contact the custom software development company which has specific experience in your domain. Such companies, usually, know what core functions should your software have. Besides, they will conduct in-depth business analysis and come up with a list of add-ons that could simplify and automate your work. With a well-tailored platform, you’ll be able to stand out from other organizations providing similar services since you will follow trends and apply innovative technologies to your software.