- Insurance apps help attract new clients, decrease operational costs, and increase business efficiency.
- An insurance app should have a user-friendly UI, policy details, the option to file a claim, payment processing, and customer support.
- It’s also necessary to ensure the app legal and security compliance.
- The insurance app development costs approximately $48 000 and may take 11 weeks.
What is an insurance app?
An insurance app is a software designed mainly for mobile devices that enable users to manage their insurance policies and claims. It allows users to quickly and easily apply for coverage, update their policy information, file, and track claims, and communicate with insurance providers. Such an app can also offer personalized policy recommendations and access to insurance-related resources.
Insurance providers implement apps to enhance customer experience, gain new clients, and, thus, increase income.
Why do you need to build an insurance app?
The insurtech industry is a relatively new niche that merges insurance and technology. This dynamic and rapidly evolving sphere has the potential to transform the traditional insurance system. In 2019, global insurtech market revenue was valued at $5.48 billion and is expected to reach $10.14 billion by 2025, according to a report by Businesswire.https://www.businesswire.com/news/home/20200701005415/en/Global-Insurtech-Market-2020-to-2025---Growth-Trends-and-Forecast---ResearchAndMarkets.com
Insurtech has a wide scope that goes beyond simple apps: it encompasses technologies like blockchain, artificial intelligence, and machine learning. Blockchain provides a secure and transparent way to store and share data, while AI helps to automate and optimize insurance processes. Advanced data analytics and machine learning algorithms ensure more accurate ways to assess risk. Thus, the latest technologies in the industry open great opportunities to launch an advanced app.
There are many implementations of insurtech apps across all types of insurance, including property, cars, pets, and even life insurance. While most of the apps are designed for customers to manage their claims, some of them are created to help insurance agents make better deals. You can choose any suitable option from a wide range of types of insurance apps — there is definitely room for new apps in the market.
All of this makes insurance software development a reasonable idea.
Benefits of the insurance mobile application for business
When you decide to build an insurance app, think about the reasons to implement it. Let’s see why it is beneficial to go for mobile app development if you are planning to open or you already have an insurance business.
Increased efficiency. Automation of tasks — claims processing and policy management — leads to increased operational efficiency, reducing the need for manual intervention. An app requires less effort and fewer people involved, which cuts costs.
Greater data insights. With advanced analytics tools, insurance providers gain valuable insights into customer behavior, identify trends, and make data-driven decisions to improve their business processes.
Improved customer experience. An insurance mobile app provides customers with quick access to their policy information and allows them to manage their policies and claims in real time. This can enhance customer satisfaction and loyalty and lead to increased retention rates.
Making money. An app can be an additional source of income for insurance businesses. Insurance apps generate revenue in several ways, depending on their business models and target markets. This could be premium accounts, commissions for each policy sold, in-app purchases, data analytics, and partner programs.
Overall, insurance app development gives a competitive advantage by providing customers with a more convenient and seamless experience. This sets companies apart from their competitors, allows them to earn extra money, increase their customer base, reduce operational costs, and boost business efficiency.
Top 5 best insurance apps
As technology advances, more and more people tend to manage their insurance policies online. Insurance companies respond to this need by developing mobile insurance applications. With so many insurance apps available in the market, it might be challenging to determine which ones are the best. Here we talk about different types of insurance apps — car, pet, health, real estate, and traveling — and highlight the top 5 apps available in these spheres.
Esurance — an insurance company that provides coverage for a variety of areas, including home, car, pet, and life insurance. Users can select the type of policy they need or opt for a combination of coverage options to save money.
Investopediahttps://www.investopedia.com/best-digital-insurance-5069849 has recognized Esurance as the best insurtech app because of its simple user-friendly interface. The app is available in 50 states across the USA and DC, making it a convenient choice for users seeking coverage.
Lemonade — a popular insurtech app launched in 2015 that focuses on providing a unique and customer-centric approach to insurance. It offers renters, homeowners, and pet insurance policies. The app’s chatbot guides users through the process of purchasing insurance policies and filing claims. Lemonade allows for adjusting coverage, adding or removing items, and making payments.
It earned a 4.9-star rating on the Apple App Store and is ranked No.1 in Google Play, Supermoney, and Clearsurance.
GEICO Mobile — an insurance app developed by GEICO, one of the largest car insurance providers in the United States. The app provides users with the ability to view their policy information, make payments, and update their policy details. Users can file and track insurance claims, view claim status, and receive updates on the progress. Additionally, clients can request roadside assistance, track the location of a tow truck, and use other tools, including a car rental booking service, a mechanic locator, and a gas station finder.
Cuvva — a UK-based insurance company that started operating in 2015. The company’s unique selling point is its flexibility, as it offers insurance coverage for cars on a short-term basis. Customers can purchase insurance for a vehicle for as little as an hour or up to a day, depending on their needs. Clients usually get a monthly subscription or pay an hourly rate when they drive a car, using a unique pay-as-you-go approach.
TravelSmart — an app through which users can file and track claims and receive real-time flight status updates up to three days before departure. The app also includes an international first-aid terms translator, making it easier for travelers to communicate with medical personnel in foreign countries. Additionally, the app’s “Assistance Around Me” map uses geolocation to direct travelers to the nearest hospital, pharmacy, police station, or U.S. embassy.
TravelSmart had over 470,000 downloads in 2019, making it one of the most popular apps in this category, according to Forbeshttps://www.forbes.com/sites/christopherelliott/2019/06/02/here-are-the-best-travel-insurance-apps-for-your-next-trip/?sh=ff45c9656892.
The main features of an insurance mobile app
Mobile insurance apps have revolutionized the insurance industry by offering a seamless and fast way to apply for insurance coverage and process claims. When choosing an app, users consider many factors, such as convenience, accessibility, and a set of functions. Here is a short list of essential features that clients value the most.
A profile in an insurance mobile app allows users to save all their personal details, including name, address, phone number, and policy details in one place. When user profile management is simple and intuitive, users consider the app convenient.
Search function and filters
This function is usually called “All policies” or “Find a policy”. The search function and filters allow users to find the information they need quickly and easily. They can use keywords to search for specific topics or set filters to narrow down the search results based on their preferences.
The insurance mobile application should display the details of the user’s policy, including the coverage, the amount of the deductible, and the expiration date of the policy. This data helps to make informed decisions when making a deal with the insurance company.
The option to file a claim
The ability to file a claim through your insurance mobile app is the most useful and time-saving feature. Users submit a claim and track its status in the app, which can help speed up the claims process.
Insurance apps often provide a secure way for users to pay for their premiums and set up automatic payments. Add a possibility to add payment methods and view payment history, so users could control the money they spend easily. This feature helps users avoid late fees and stay up-to-date on their payments.
Many insurance apps offer a customer support feature that allows users to contact the insurance company or the expert directly from the app. This can include live chat, email, or phone support. Customer support is a convenient way for users to get assistance with any issues they may be experiencing. If it works well, this is a sign of an app that can be trusted.
As a developer, you may include the ability to send users reminders about upcoming payments, changes to their policy, or updates to the status of their claims. It helps users stay informed. Additionally, you can make notifications about discounts and novelties that your clients might want to buy, so there is a chance for you to make money.
Tech stack for building an insurance app
React Native for mobile apps. This is a popular technology used in mobile app development, as it allows developers to create mobile apps for several platforms using a single codebase. With React Native, developers write code once and deploy it across different platforms like iOS and Android. This saves time and resources and ensures that your app runs smoothly across all devices.
Legal compliance of insurance apps
Legal compliance is an essential part of insurance app development, as any insurance app deals with a lot of user data and must ensure user safety. Key factors to consider include:
Data privacy and security. Insurance apps collect and store sensitive user data, including personal and financial information. To ensure data privacy and safety, the apps must comply with data privacy laws, including Data Protection Act (DPA), General Data Protection Regulation (GDPR), and Health Insurance Portability and Accountability Act (HIPAA).
Insurance industry regulations. Apps must comply with insurance regulations in the countries where they operate — the app should be legally allowed to offer insurance services and protect users from malicious practices. Every country has its own insurance regulations.
Consumer protection laws. Consumer protection laws secure purchases of goods and services from poor-quality products, misleading and fraudulent business practices. In the US, an example of such a law is Section 5 of the Federal Trade Act.
To meet legal requirements, insurance app developers should work closely with legal experts. Failure to comply may result in legal action and damage to the app’s reputation. To prevent this, contact professionals who have experience in building compliant apps.
6 steps to develop an insurance app
MVP (minimal viable product) is a version of the product that includes basic functions. It is a great choice for those who want to test the idea on the market with a minimum budget and collect the first feedback. Our team has experience in creating functional MVPs — consider the steps that we follow to create an insurance app.
Step 1. Formulate your idea and main goals. As a customer, you are the product owner and the main creator. Come up with an idea and do market research. If necessary, we can help with the market research, and then will take care of the rest.
Step 2. Identify the main functions of the app. Choose the set of basic features you are willing to spend time and money on when launching the first version of your product. Go through the checklist of the main features above to include all the necessary elements.
Step 3. Create a design. At this stage, you need to collect and provide references. With our team of professional UI/UX designers, you will be able to create an eye-pleasing and easy-to-use app design.
We will start with a mind map, then create wireframes, and, finally, make a clickable prototype that you can show to investors and pass over to engineers.
Step 4. Code and test. This is where frontend and backend development starts. Frontend development mainly focuses on the interface — everything that the user can see on the screen. Backend is the server side of the app which encompasses the app’s data structure, system, and logic. Using the tech stack described above, we create the main functions, install payment gateways, and check whether all functions of the product work correctly at every stage of development.
Step 5. Release your app. When design and coding are over, you can launch your application in the App Store, Google Play, or any other marketplace for apps.
Pay attention to the reviews of your first users. There you often find new ideas for improving and refining the app.
Step 6. Take care of the post-release support. After the release, everything is just beginning. Once you have collected feedback from the first users, it’s time for further updating and improvement. If you work with us, we can offer post-release support.
How much does it cost to develop an insurance app?
The cost of developing an insurance app varies depending on several factors, such as the app’s complexity, the features it includes, and the technology stack used to build it. At Purrweb, we estimate a project cost at the discovery stage. We take into account the client’s needs and desires to create a perfect MVP with essential features.
Here’s how our team estimates rates and timeframes for the development of an insurance mobile application with a basic set of functions:
|Stage||Estimation in hours||Estimation in weeks||Approximate costs|
|Project analysis||8 hours||0 weeks||$0|
|UI/UX design||90 hours||3 weeks||$4 455|
|App coding||700 hours||8 weeks||$34 200|
|QA (quality assurance)||in parallel with the development||in parallel with the development||$5 600|
|Project management||during the whole project||during the whole project||$4 050|
Overall, insurance app development will cost you approximately $48 305. For more information about our development services, please contact us.
Application development is beneficial to insurance companies because it allows them to earn money, increase the customer base, reduce operating costs, and improve business efficiency.
If you are the owner of a company that is looking for a team to create an app, Purrweb employs 190 specialists with 8 years of mobile app development experience. Contact Purrweb and get an individual offer.