Cost & Features To Develop A Top-Notch Insurance Software Management System

A3Logics 19 Aug 2022

The need for a management system for insurance businesses have several reasons, such as

  • automating multiple processes,
  • simplifying brokers and agents tasks, and
  • providing transparency at all stages.

Insurance businesses have continuous progressive activities, unlike any other business. Insurers work revolves around policies and claims issuing and maintaining them. These policies are directly linked to coverage periods that vary from policy to policy.

The time dependencies on each policy are based on various conditions & rates respectively. Additionally, they also differ when notable changes are made by an individual or business requirements.

Similarly, managing claims is a subsequently challenging task that consists of aspects, such as delays, adjustments overtime, and the time of payment on requisite dates.

In order to manage the fluidity business, dealing with these everyday struggles while structuring a substantial solution is imperative. Hence, a robust and competitive insurance management system should be adopted by the companies.

Any effective insurance management is a power-integrated, feature-rich solution, which is the amalgamation of customer relationship management solutions as well as ERP software solutions.

Standards and Objectives of Effective Insurance Management Software

The combination of CRM & ERP solutions helps the insurance agency’s staff to enhance their client relationships while taking care of their information accurately.

Technology-integrated insurance management software also automats the commission and other processes. To concise, the advantages of advanced insurance system are –

  • Analyzing insurance commissions.
  • Tracking sales or transactions.
  • Warehouse of agency’s data and its customers.
  • Performance report and account analysis.
  • Third-party tools support.
  • Automating workflows.

Depending on the business needs, insurance agencies can get custom SaaS development services. You can either integrate it as a standalone solution or utilize it as an insurance suite for all your problems.

Types of Insurance Software Solution

There are a plethora of insurance software’s that caters to every insurer’s needs. We have highlighted the types of insurance software solutions that an enterprise software development service provider can build and deploy. Let’s understand their benefits that also describe their requirements.

Document Management Software

Secure storage, organization, and access to important documents; contracts, policyholder agreements & more.

CRM/Insurance Lead Management Software

Connect & manage teams, distributed channels, centers, agents, & field sales at one place for increased efficiency.

Insurance Workflow Automation Software

Arrange, observe, control, and coordinate with distinct business processes; involving HR, sales & marketing, lead management & more.

Policy Management Software

Seamlessly create, administer, and manage Software insurance policies; reinsurance treaties and facultative arrangements; easy integration of risk handling.

Underwriting Software

Evaluate and manage the underwriting Software process, automate rules & policies execution; reduce human error while digitizing ERM solutions.

Claim Management Software

Streamline claim management workflow; Software automate claim document generation; manage payments; monitor fraudulent & integrate policy administration.

ERP Software

Track customer credentials, amount in the transit, legal data agreement, and integrate CRM. Mobile App for Mobile CRM to track activities, effective Agents & Reps planning & recommendations; upsell-cross sell signals; update notes & more.

Call Center Software

Direct customer calling from the portal to reach potential customers over voice, web, chat, or emails.

Agency Portal Real-time data exchanges between brokers, agents, and users.

Benefits of Using an Insurance Software Management System

If you look at CRM adoption stats in 2017, you will find that #39.5 billion revenue was generated making it the largest software in the market-dominating DBMS; Gartner.

Amidst the global pandemic, technology advancements have assisted businesses including the insurance agencies. The latest technology integration automates multiple processes that simplify and give convenience to the insuring brokers and agents of the company.

Let’s highlight the benefits of leveraging insurance management software services.

1. In-depth Analysis

Integrating the insurance software gives you the leverage to sort data swiftly. The in-built features within the system enable you to search information, organize it and further use it to generate reliable and impactful reports.

2. Complete Control

Integration of technology-centric insurance management solutions gives you a single platform to monitor and manage all current and past processes of the agency. You can simply observe and analyze user requests aligned, transactions made, and their calculations.

3. Third-party Tools Integration

With an advanced insurance software solution, insurance agencies can flexibly integrate other tools, which can accentuate monitoring and management of processes. Additionally, you can combine other management systems and benefit from their features to better organize and manage depending on specific requirements.

4. Infrastructure Security

An imperative feature that any management software solution must-have is a full-proof integrated firewall to restrict malicious activity from penetrating. Security becomes a priority when customer’s sensitive information is involved with the company. The insurance management software solution is integrated with robust protection to secure every bit of the information.

5. Automate Document Workflow

The insurance software solution can give you an extra hand to create intuitive and striking analytical reports. Manage emails and notifications while pushing them quickly, without a minute’s delay. Additionally, the software can automate document creation by arranging data.

Comprehending the benefits of integrating a robust and scalable insurance management software, IT professional service providers receive countless requests for the development services of the system.

Core Features of the Advanced Insurance Management Solution

In order to have robust and scalable insurance management software solutions, you need to associate with the right IT consultation services provider, who can analyze and evaluate your challenges and furnish you with the right features.

Let’s understand the built-in features in insurance management software to provide the executives and professionals the full spectrum of data analysis and reporting while keeping the security intact.

–          Claim Activity Monitoring

The integrated feature is crafted to leverage a gamut of claim-related information. This feature of the insurance management software solution allows you to obtain information related to claims, such as payment components, outstanding claim reserves, event code and perils, any deductibles, and relevant dates of the claim activities.

Insurance agencies can effectively monitor and manage them without any stress. They can analyze even the minute’s details, such as open and closed claim activities respective of services.

–          Risk Parameters Lists

A comprehensive management tool has substantial risk parameters integrated with powerful and latest technology. Hence insurance companies can view product insured, such as vehicle, house & more with the pricing linked, mentioned in the underwritings. This feature is an upgraded version of the traditional analysis methods and architecture type where abundant data never causes system lagging or slow performance.

–          Insurance Views

With this feature in hand, companies can seamlessly analyze the risk exposures on the insurance. Whether sum insured or unit insured based, the system can calculate risk, on gross, surrendered reinsurance, and retained basis too.

–          Dynamic Calculations

Companies can analyze the profitability on a daily basis and monitor trends before time with the help of fast earned and unearned calculations. Through the individual policy coverage section, insurance companies can provide unearned reserve or premium earned calculations.

–          Insurance Metrics

Insurance agencies can identify loss ratio, risk cost, loss frequency, and burning cost per policy all related to gross, net, and reinsurance basis. Companies also get advanced analytical reports and extensive analysis ability.

–          Time Bases

Since insurance agencies run on policies and time leaning on it, this feature is dedicated to analyze and calculate all insurance activities based on time. The in-built feature proffers operational, accidental, financial accounting analysis, policy inception, and snapshot data analysis and report. The system is highly supportive of inter-dependencies while providing a reasonable framework to analyze and prepare a report on actuaries, reinsurance managers, claims managers, underwriters, accountants, and marketing executives.

–          Reporting on Change

This feature is integrated when companies want to analyze the change in the hierarchical chains. The integrated mobility management solution provides insurers analyzing their distributed channel sales through a report, profitable performance while giving you a complete view of the organizational structure change.

–          Multicurrency Calculations

This is an advanced solution with a built-in mechanism, i.e, multi-currency information, and index adjusted reporting. These both aim to cover the most essential aspects, which are multiple currency conversion and specific territorial index standards to prepare long-tail claim stats.

–          Renewal and Lapse Evaluations

Companies that have premiums with auto-renewal for multiple clients require identification of these policies distributed on different channels or so. This feature also allows you to actively market your product with adequate sales support.

–          Crossover Report

The data model of the insurance management software is developed by the dedicated software development team that provides the insurance companies with built-in answers for sections or coverage of insured products or objects. Additionally, the feature offers insights into the business behavior of the company’s underwriters.

–          Rollback Time

This feature enables users to view and analyze the insurance reports at any time. The professional insurers are leveraged to review the mentioned underwritings with their respective date of writing to analyze the refined financial results.

–          IBNR Allocation

Incurred but not reported allocations are essential calculations that insurance agencies have overhead. With the assistance of useful templates, companies can calculate actuary ranging from portfolio level to claim level.

–          Claims Reserves Analysis

This is an advanced feature of insurance software that provides statistics after comparing time. The powerful feature is integrated with a mechanism that can provide meticulous insights into claim reserves.

Cost of Insurance Management Software

Insurance software development isn’t the kind of development that can be developed by a freelancer. It is always recommended to collaborate with a product engineering service provider to get your work done.

You can outsource or hire a software developer at the lowest $27 – $39 per hour to $250 – $850 per month. Nonetheless, the hourly rate can vary depending on location, experience, sales, size of the project, and online payroll services.

So, let’s say if your insurance agency management software development ranges from $1000-$5000 the monthly rate can range between $60-$600.  Here, in this section we shall discuss the methods and factors affecting the cost of development of Insurance management software solutions.

Methods to Evaluate Cost

Empirical Method – The method provides a deep statistical analysis of the research and investigation made for the project inclusive of cost.

Structural-algorithmic Method –  This method is effective for analyzing and calculating the cost of the project, which is evaluated from the statistical data of the accomplished projects.

Expert Estimations – Here the cost estimation is evaluated after conducting a substantial interview with the outsourcing experts in regards to their development expertise. With relevant FAQs, their knowledge can be obtained, such as development in a particular industry, technology integration & other relevant factors.

Software Life Cycle Model – This form of cost estimation is made after the analysis of time and efforts needed over the project.

Constructive Cost Model – This method explains the cost dependency over code scope as well as a labor input.

Factors Affecting the Insurance Management Software Cost

Insurance software manages and calculates some of the most complex tasks, hence you would want to have it robust and swift. But, developing a technology integrated software solution undergoes a lot of changes and quality checks before deployment.

Hence, the company you are planning to associate with must have reliable and robust quality software testing services for scalability and expected performance.

1.      Feature Count

Insurance software contains a multitude of features that require administration of claims, policies, data compliance, and utilization & much more. Developers need to comprehend and design each feature that also provides automated functionality for mundane tasks and reduce the laborious manual work. The extra added or customized features may take extra time as expected with increased cost as well.

2.      Number of Team Members

The number of designers, developers, and testers assigned to your project also affects the cost of the project. If the project has a short deadline, the website development company has to allocate more and more developers. Also, the expert  and experienced employees’ charges vary from an averagely skilled team developing the project.

3.      Project Duration

The most important factor that impacts the project cost is the number of workdays a team is working on the project development. A document is prepared before the development and design mentioning the productive hour per day, available workdays, delayed calculations, multitasking productivity loss, and others.

4.      Risks

These are uncertainties that can occur while developing a project at any moment. This factor delays the duration of the estimated time frame of project deployment while increasing the cost indirectly.

5.      Revision of the Budget

The collaboration with the stakeholder for a project is signed for a particular period. The extension of the project due to any given reason can highly impact the overall budget of the project. Hence, it is suggested to complete the project within the given time frame without overburdening from the revisions.

6.      Type of Insurance

Insurance programs are diverse and not all insurance agencies offer a wide range of services. Some may offer property & life insurance while others may offer vehicle insurance or some only business-related insurance solutions. Hence, it is requisite for the associate development company to understand the specifications while further conducting the in-depth business analysis to offer solutions at a granular level.

7.      Overall Schedule List

Documentation is prepared with a list of milestones, activities, and deliveries; in the beginning of the project and remains the same till the end. This factor is essential to keeping a low cost of the project as everything is predefined. However, changes can impact the backlog of product delivery.

8.      Pre-Study

Pre-study is an extra cost for business analysis, which is directly proportional to the quality and accuracy of business project development. However, the cost of pre-study varies depending on the project size, but it is always worth investing in conducting business analysis.

9.      Cooperation

A requisite factor for the scalability and cost difference of a project. Through effective management and well-communicative collaboration the project accuracy and cost estimation can be easily influenced.

Choosing the Perfect Insurance Agency Management Software

After evaluating your insurance business environment you can pick the type of solution you want. Here are the types of solutions from which you can pick as per time and budget.

Comprehensive Solution

When you are clear of the functionalities that your insurance software must provide, you can look for a solution that covers all your business needs. You can pick the requisite tool for your existing software solution, such as opportunity management software for up-sell & cross-sell. These tailored solutions do not cost much as you desire a solution for specific functionality.

Integrated Solution

Today’s most integrated banking and financial solutions comply with third-party tools to tailor your needs. You can communicate your needs with the vendor and get an insurance software solution that can easily integrate any third-party apps or software requisite to enhance the productivity of your business.

On-premise or Cloud Solution

Cloud computing services are the most advancing and demanding solution to aid the scalability of the business. However, you have the leverage to choose between on-premise and cloud-based, where on-premise gives you more control and customization opportunity. While cloud-based options are less demanding and offer dynamic inclusive of customized options without the need for IT intervention.

To Conclude

Insurance management software solution is a key element for any insurance agency to keep track of its services. Digital solutions integrated with the latest technologies such as AI and ML can assist companies to automate some complex tasks to let them focus on other beneficial and attention-requiring activities.

However, complex solutions, such as insurance software with multitude features may demand higher cost comparative to any sophisticated and resourceful software solution. Hence, the cost estimation of the project must be evaluated after a thorough analysis of business needs and the idea behind the requisite solution.