The way technology is progressing, most manual tasks are going out of trend. Those days are long gone when approvals and rejections were paper-based jobs. These days a large chunk of work is performed online, especially through mobile apps. Take, for instance, professional insurance services delivered through modern applications. Customers find it helpful to tap mobile apps when they need to avail insurance services for any of their favorite products. Since it doesn’t require them to visit any office or meet any agent in person, consumers are delighted to fulfill their insurance requirements from the comfort of their couch, resulting in increased satisfaction, engagement, and most importantly, sales. That’s not all! There are wads of benefits for insurance companies too that wish to make an investment in Insurtech. Please keep reading further to learn more about Insurtech.
What is Insurtech?
Insurtech is mainly all about technological innovations that are created and implemented to take the efficiency of the insurance industry to the next level. It fuels the development, distribution, and administration of the insurance business.
As per a prediction performed of late by a global data and business intelligence platform, the insurance market worldwide is expected to hit the $8.4 trillion mark by the end of 2026.
What are the benefits of making an investment in Insurtech?
The advantages of spending a small portion of your money on Insurtech are many, be it for buyers or insurers.
1. For customers
Well, they are:
A. Empowering the consumer
Insurtech is driven by patrons and allows them to put value on any aspect of their life. It includes family, friends, and other fellows from the group in a comprehensive coverage. Policy buyers are a part of the process ranging right from registration to claims and can even decide who joins the claims jury panel for a hearing. This increased knowledge and engagement ultimately benefits consumers according to top insurance software development companies.
B. Upsurged security and customization
With Insurtech at insurance agencies’ disposal, they can set strict anti-spamming and security policies to keep intact the confidence of buyers when they transact online. It also lets the concerned firms gather and analyze data from clients, ensuring updated offerings and personalized products.
C. Convenience and ease of access
Today, a humongous number of customers perform essential tasks using their mobile phones. And the surprising thing is that they expect the same level of easiness for mobile usage when it comes to availing professional insurance services. Since Insurtech is a mobile-friendly concept, all the policy buyers can compare, validate, and make purchase decisions from the comfort of their home. In addition to that, they can also check the status of their claims using handheld devices, saving an enormous amount of time for themselves and insurers as per a leading mobile app development company.
2. For insurance providers
Insurtech can save a lot of time and money for all insurance entities.
- Save time and money by preventing fraud, especially in the cases of anti-money laundering and customer identity verification
- Introduce the latest approaches of insurance distribution, such as P2P insurance, where groups of purchasers pool together premiums as insurance against major risks
- Facilitate underwriting by automating information accumulation and integration into record
- Automate claims, resulting in error reduction and automatic contract enforcement
- Foster fresh innovative products with smart contracts that surpass traditional claims
How can ensuring investment in Insurtech will benefit your business in 2024?
1. Better customer engagement
The more Insurtech organizations pay attention to the interests of their consumers, the more engaged that consumer base becomes, resulting in stronger relationships with offerings down the line. What’s more? Insurtech is providing increasingly incentivized solutions to their users, leading them to get more discounts and benefits through their engagement in the offerings. Gamification is also something that has become an instrumental part of app development processes if the words of a prominent custom software development company are to be believed.
2. Robust consumer relationships
Unlike in the past days, Insurtech firms maintain contact with their policy buyers nowadays. Yes, they perform this by offering customized services, flexible products, and by ensuring that when any claims are made, they get addressed quickly and efficiently. To execute these processes smoothly, insurance software development companies tap the most recent automated and AI technology to underwrite events. Apart from that, they take advantage of very precise risk assessments, which drive down their costs and often decrease the premiums passed on to consumers too. Hence, lower premium costs translate into a growing customer base and more capital to expand down the road.
3. Embedded services across all industries
Buying insurance is no longer the journey of visiting a specific firm’s website to get a policy that fits one’s requirements. Today, insurance cover can be found on several famous eCommerce platforms, being sold along with items that need some sort of servicing and maintenance. From the viewpoint of investment in Insurtech, the change has become clearly visible in the last 12 months, for example, Amazon has collaborated with a myriad of companies to offer insurance cover on goods at the checkout stage. These partnerships only appear to upsurge in the coming days and with it, the expansion of the Insurtech industry will occur too in the future.
4. Data, data, and more data
As the size and ability of IoT technology are increasing day by day, the Insurtech sector is benefiting from it too. The amount of data garnered by tech-centric insurers has made a significant impact on a multitude of sectors, including but not limited to the following:
- Property and Casualty
- Health insurance
- Motor insurance
A few examples of the right investment in Insurtech along with the solid effect on several sectors are:
- Smart homes can now monitor risk way more precisely with sensor systems
- Health insurers can incentivize their buyers through wearable devices
- The car insurance market is currently adopting Usage-based insurance approaches which is highly likely to boost as telematics and automated cars become the new normal.
How much investment in Insurtech is required for insurance app development?
To develop a tech-oriented insurance application, the expected expense may vary between $35,000 to $250,000. There are a large number of factors that influence the insurance app development cost, like:
- Location of the mobile app development company
- UI/UX design of the app
- Tech stack
- Feature list
- Development process
In layman’s terms, a highly complicated application with a long list of features will shoot up the cost of insurance app development as compared to creating a mobile app that is less complicated and contains fewer features. Let us give you a rough idea of the insurance app development cost from investment in Insurtech point of view:
|Insurance app type
|Expected cost of development
|$35,000 to $60,000
|3 – 6 months
|Slightly complicated application
|$70,000 to $165,000
|6 – 8 months
|Highly complicated application
|$170,000 to $250,000
So far you learned that customers are becoming tech-savvy as the time is passing by. They wish to get all the services with the push of a few buttons, whether insurance or digital transformation services. In that case, it is essential for small and mid-sized insurance firms to modernize their systems and adopt cutting-edge technologies in the best possible way so that it becomes a breeze to deliver excellent and satisfactory insurance services to consumers.
They must make sure that it becomes an effortless process for customers to buy policies, make claims, check status, and most importantly, settle claims with a few clicks. Doing this will not just increase customer satisfaction, improve their experiences, and attract new buyers, but also augment sales in the long run. Thus, if you have made up your mind to make an investment in Insurtech and want to have an experienced tech partner by your side who can help you with insurance app development, please feel free to reach out to us through call or email.