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Some time ago, in an article about HIPAA regulations and the healthcare industry, I mentioned the complexity of the digitization process. Due to many regulations and extensive internal procedures, opening up to digital transformation is not happening at the same pace as in other industries. This time I decided to direct my attention to the InsurTech phenomenon, which has revolutionized the insurance market thanks to its openness to digital technologies.

Definition of InsurTech

InsurTech is a technology that encompasses any insurance company that uses the benefits of digitization to improve the quality of its services. Such activities are also carried out to improve the company's internal processes. InsurTech has proven to be a real revolution among insurance companies recently. Its impact can be seen, in new businesses and startups that have launched to combine standard solutions with modern technology.

insurance company

Benefits of software application development for InsurTech

InsurTech technology isn't only a change from the existing conditions and an opening to digitalization. It also has a range of benefits that come from making offerings more attractive and improving internal processes. Currently, more and more insurance companies are making inquiries to IT service providers to update legacy systems or develop a custom software application. Supporting of their actions, they offer the following arguments:

Extensive Data Analysis

With an extensive database, insurance companies can easily perform risk assessment activities, and make all assessments based on reliable information. Data analysis is also a benefit from the customer's point of view. By using the right tools, a person deciding on insurance services can choose a convenient offer. 

Service provision via the network

Taking a course toward digital solutions opens up new opportunities for insurance companies. One of them is the provision of services beyond fixed points. This way, customers can easily review offers via mobile devices and choose the best one from among them.

Service personalization

Personalization is an area for insurance companies to explore deeply. Online presence does not have to be limited to the presentation of offers only. Modern companies are trying to get to know their customers better through social media or web and mobile applications. Knowing the habits of your audience and verifying their needs can provide many information that will translate into better service delivery

More profits and cost reduction

By better organizing data in the app, insurance companies can save the necessary information on their platform. As a result, the company will gain more time to focus on key tasks, and thus, among other things, prepare attractive offers for loyal customers. Such a personalized view of the consumer can bring more profits and reduce operating costs at the same time. Automation can also relieve the duties of some employees by giving them space to perform other tasks. 

Fraud identification

The risk of any kind of fraud in the insurance industry is similar to that in the financial sector. With the support of Artificial Intelligence, any event can be modeled and any kind of irregularity can be caught. Such a solution guarantees that the software application used will protect the owners of the company from risk of fraudulent use of their services.

InsurTech

Modern technologies supporting InsurTech

Simply opening up to the InsurTech model will not suddenly make your company innovative. For that, you need skillfully selected digital technologies. Innovative entrepreneurs are not afraid to take advantage of modern technological discoveries. Therefore, the presence of the following solutions in insurance applications often proves crucial.

Artificial Intelligence (AI)

Artificial intelligence is responsible not only for the abuses mentioned earlier. It also supports all kinds of analysis, data processing and even communication through chatbots and customer assistants. The boon of artificial intelligence is the ability to change company processes from traditional to digital. Particularly when it comes to organizing and collecting documentation, the presence of AI is of undeniable importance.

Internet of Things (IoT)

The Internet of Things (IoT) is another nod to new technological developments. Through the use of smart devices connected to the insurer's app (e.g., smoke detectors, home security), customers can not only receive personalized offers, but also attractive discounts. In this way, insurance companies minimize the risk of unwanted events, and customers can enjoy favorable offers and security.

Machine Learning

A common solution in InsurTech products is Machine Learning. The accumulation of data in such large quantities makes the implementation of such technology into the life of an insurance company a lot of opportunities. Machine Learning can be responsible for handling claims, as well as quotes. Vehicle image processing can be done while estimating repair costs. These types of solutions are not a vision of the distant future. There are companies on the market whose software offers such possibilities. 

machine learning

What challenges does the InsurTech industry face in opening up to software applications?

The insurance industry is governed by its own rules. While they set the rules for many companies, they also generate many challenges. Especially if the opening to digital transformation is included. Here are a few areas that the InsurTech companies must consider when developing application software.

Development of data management

Data - it is the solid foundation of insurers. Their collection, management and analysis are essential for assessing risk and conducting proper pricing. Insurance companies should invest in this area so that their solutions continue to grow. This includes security issues, which are significant from the perspective of customers themselves. The industry should keep abreast of current regulations and adhere to them dependably.

Product enhancement

Developing insurance products requires companies to put themselves in the shoes of their customers. The key in this case is to understand their needs and customize the application so that it fully meets the expectations of the audience. At the same time, the application software should be prepared in such a way that the tool offers the right products.

Commitment to customer acquisition

When a company proposes an app solution, it does not immediately mean winning a customer. It requires a lot of money and, of course, time. Nevertheless, the commitment to attracting new customers should not be neglected. Customizing content, paying attention to the quality of customer service and developing solutions for new users will help build a community around the company and the credibility of its services.

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What can be learned from InsurTech applications

InsurTech apps are proof that it is possible to develop industries that require special attention through smart solutions. Insurance companies fit perfectly into this characteristic due to their attention to data and user security. A huge lesson from recent years of InsurTech development is the use of modern technologies and the adaptation of new business models. Developing software for the insurance market is very similar to the method of operation towards FinTech companies. Therefore, it is worth watching the development of both these sectors to be able to select proven solutions for opening up to the digitalization of businesses.

Click on Case Studies and see what solutions Railwaymen has offered to its existing clients. You may find examples of actions that would prove revolutionary for your insurance company.

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