Mobile banking isn’t a luxury anymore. It’s a necessity. It’s something that banks must have these days.

Don’t you agree?

So, what’s going on? American banks are lagging behind in mobile banking. Fintechs like Revolut and N26 are thriving. How is it possible that US banks, which have led the world in innovative technologies since launching credit cards in the 1950s, are now falling behind?

Unfortunately, that’s the case—we’re trailing behind developing countries like Kenya.

Doubt it?

Look at the report from the Federal Reserve Bank of Richmond: Kenya’s mobile payment adoption rate is about 75%, while in the U.S., it’s less than 25%.

Seventy-five percent versus twenty-five percent—what a difference!

What are the reasons for this disparity?

Many sources point to key issues such as the existing payment infrastructure and regulatory environment. Secondary factors could include the high costs associated with developing their own mobile banking solutions for many banks. Additionally, there is often a lack of resources and expertise needed to create modern solutions.

Ready to dig in?

Having been in Fintech software development for 11 years we’re at Itexus are familiar with the problems and know how to work them out. In this article, we explore many aspects that can either increase or decrease the cost. On top of that, we will share some tips and tricks on how to reduce development costs by 10 to 20%.

How Much It Cost To Create Mobile Banking App

The average cost of mobile banking app development typically ranges from $30,000 to $500,000. However, many factors affect the cost of development. The most significant are the app’s functionality and the complexity of the processes involved in development. 

The more functionality, the higher cost.

Contact us for a free consultation and a one-day estimate for your project

Custom vs. Ready-Made Banking Apps: Finding the Right Fit

Banks face a crucial decision when it comes to mobile app development. They can either build an application from scratch or opt for a ready-made white-label banking app. Developing from scratch offers several advantages. A custom app is tailored to meet specific client requirements perfectly. It reflects the bank’s unique branding and provides a seamless user experience.

On the other hand, ready-made white-label solutions present a quicker, more cost-effective alternative. These apps can be customized to some extent, but they are inherently a compromise. Think of it like choosing between a tailored suit and one bought off the rack. While the off-the-rack suit is convenient, it may not fit perfectly. Ultimately, the choice depends on the bank’s goals, timeline, and budget. Each option has its pros and cons; banks must carefully weigh their priorities before deciding which path to take.

Simple apps have basic functionality with minimal features that allow users to do the following:

• Access accounts and cards.
• Check their balances.
• Transfer funds.
• Make banking inquiries.
• KYC
• Two factor authentication.
• Facial recognition.

Medium apps have advanced significantly in terms of UI/UX design and functionality. In addition to the simpler apps mentioned above, they include the following features:  

• Make payments to merchants and for services delivered.  
• Open and withdraw from deposits.  
• View transaction history.  
• Manage savings.  
• Order debit, credit, and virtual cards.  
• Receive notifications for financial transactions.  
• Apply for loans.  
• Conduct wire and ACH transfers.  
• Calculate interest rates.

Advanced apps often use AI and offer the following features:  

• Spending Analysis: Provides insights into spending patterns and categorizes expenses.
• Budgeting Tools: Helps users set up budgets and track progress toward financial goals.
• Fraud Alerts: Notifies customers of potentially fraudulent activity on their accounts.
• Support for Financial Questions: Answers general inquiries about banking products and services using AI.
• Voice and Chat Interaction: Allows users to interact through text or voice commands in the mobile app.
• Cryptocurrency.
• Personalized Insights: Offers tips and recommendations based on users’ financial behavior and goals.
• Investment Management: Facilitates management of investment portfolios.

In the USA, several leading banks in the industry offer banking apps with comprehensive features, including Bank of America, Citibank, Chase, and Capital One

Prior to developing a mobile banking app, it’s essential to review several key factors that significantly influence the overall cost. These include complexity, functionality, team performance, and quality. Each of these elements plays a crucial role in determining how much you’ll spend and what you can expect from the final product.

Don’t miss out! Check out the advanced apps other banks are using too!

White-Label Mobile Banking App
Mobile Banking App for Migrants
Loan Lending App
Mobile Bank Transfer App

Project Team Commonly Involved in Banking App Development

Typically, the following roles are involved in such projects: Project Manager (PM), Business Analyst (BA), UI/UX Designer, Program Architect, Developers, Frontend Developers, Quality Assurance (QA) Engineers, Security Experts, and DevOps Engineers.

Review of Global Hourly Rates

Prior to developing a mobile banking app, it’s essential to review several key factors that significantly influence the overall cost. These include complexity, functionality, team performance, and quality. Each of these elements plays a crucial role in determining how much you’ll spend and what you can expect from the final product.

To navigate through them and avoid potential pitfalls, it makes sense to hire a team of professionals.

Just a heads-up—the price also depends on the region and local rates. We’ve shared our rates above, but costs vary globally. Some regions are more affordable, while others can be pricier. It all impacts your budget!

To give you an idea, here are some rates: 

• In the USA and UK, it’s between $70 and $150 per hour.
• In Eastern Europe, average rates fluctuate from $40 to $80 per hour.
• Over in Asia, rates range from $20 to $40 per hour.

As you can see, it varies widely!

Now, here’s a crucial piece of advice: while it might be tempting to go with a cheaper development team, that decision can lead to significant pitfalls. A low-budget option may result in a project that doesn’t take off, or worse, delivers a low-quality application filled with defects and security vulnerabilities.

Imagine dealing with complex and expensive code maintenance due to bad architecture that can’t support high loads—yikes! In the end, you could wind up spending hundreds of thousands of dollars and months or even years on development, only to realize you’ll have to scrap everything and start over.

That’s a costly setback nobody wants! So, when embarking on your mobile banking app journey, remember to hire a professional team and keep a close eye on the process and quality at every stage. After all, investing in expertise will save you time, money, and headaches down the road!

Key Factors Affecting Mobile Banking Application Costs

Needless to say, the more functionality you employ to an app the more technical resource and labor it requires. 

Let’s look at each factor in detail.

Feature Complexity: The breadth and depth of features and services, such as core banking functions versus advanced investment tools, directly influence the development effort and associated costs. To put it simply, a savings account feature will be less costly than an integrated wealth management tool.

Functionality: Adding features like fund transfers and chatbots increases costs. More features need more coding and testing.

UI/UX Design: Creating an attractive, easy-to-use interface needs skilled designers, raising costs. A good user experience keeps customers.

Data Management: Securely managing customer data is costly. This includes server costs and maintenance. It’s vital for compliance and trust.

Banking Regulation Compliance: Meeting regulations like GDPR and AML requires extra work. This includes testing and documentation, raising costs.

Security Measures: Strong security, like encryption and multi-factor authentication, increases development time and costs. It’s crucial for preventing breaches and keeping customer trust.

Performance and Scalability – the application may need to be able to handle millions of simultaneous users and transactions, this requires proper scalable architecture design which seriously affects the cost compared to a single user app with identical functionality.

Hidden Costs in Banking App Development

Now that we reviewed the factors it makes sense to delve into something very important that can affect your project. It’s about hidden costs.

Service Subscription

Depending on its functionality, an app may require additional subscriptions for third-party services, such as:

• Email delivery
• SMS delivery
• Push notifications
• Chatbot services
• Hosting
• Servers
• Data and image storage

Marketing

Needless to say, marketing is crucial. Without the promotion of a product, there are no sales. This cost can be limitless.

How to reduce mobile banking app Development Cost 

Indeed, those invisible aspects can be unpleasant. However, there are hints that can help reduce costs, and we have collected insights from our experience that everyone can employ while developing an app.

MVP Development

MVP — minimum viable product — it’s initial version of your app. An MVP can help you gather valuable user feedback before your entire budget goes to a product that doesn’t meet customer expectations. Instead of spending a lot of money and find that some features are out of interest for users, MVP allows to determine it on the early stage that lead to reducton of cost.

Validate capabilities

MVP helps to test the core features of the app and its scalability without a large investment of capital.

Risks and challenges of building a banking application

Given the specialized nature of the banking industry, it is extremely sensitive to financial data and regulatory requirements. This leads to numerous risks and challenges when building a banking application:

1. Security and Compliance Risks:

   – Protecting sensitive customer data from breaches and fraudulent activities is critical. Additionally, ensuring compliance with regulations such as GDPR and PCI DSS can complicate development.

2. User Trust and Experience:

   – Gaining user trust is paramount, as security incidents can erode confidence. Moreover, the application must be intuitive and user-friendly to prevent high abandonment rates.

3. Integration and Data Management:

   – Integrating with legacy systems and third-party services can pose challenges, while maintaining data accuracy, consistency, and privacy remains crucial for user satisfaction.

4. Performance and Scalability:

   – The app must handle high traffic, especially during peak times, and be scalable to accommodate growing user bases without sacrificing performance.

5. Cost and Development Delays:

   – Initial development costs can exceed estimates, and unforeseen complexities may lead to delays, necessitating careful budget management and efficient project planning.

Final Thoughts

Oh, I know what you’re thinking: What’s the real cost of developing a mobile banking app? Understanding this is crucial, with typical costs ranging from $30,000 to $500,000. These figures depend on various factors, including app complexity, functionality, and design.

Ready to embark on your project? First, pinpoint the functionality you need. Then, reach out to several professional companies for assessments and technical proposals. Be sure to take your time comparing your options. If you’re considering an in-house approach, hiring a third-party auditor or a trusted service station can help keep everything on track. These steps will set you up for success from the get-go!

At Itexus, we specialize in fintech application development, offering tailored solutions to meet your unique requirements. Our team excels at integrating modern technology with comprehensive feature sets that align perfectly with your business goals.

We have a proven track record with successful projects, like the White-Label Mobile Banking App that improved a leading bank’s customer retention by 20%, along with innovative apps for migrants,  loan lending, and mobile bank transfers. These examples highlight our commitment to delivering impactful solutions that drive results.

So, are you ready to elevate your mobile banking capabilities? Don’t hesitate to connect with the Itexus team for more information on our banking software development solutions. Let’s collaborate to create an app that transforms your business and enhances your customers’ banking experience!

The post Mobile Banking App Development Costs: The Untold Aspects first appeared on Itexus.

The same applies to KYC. In addition to a one-time integration payment, you may have to pay regular subscription fees or charges per user verified. This adds up to a financial burden, as your customer base grows. Have you considered custom KYC development? In this article, we will explain the distinction between KYC and AML, explore how KYC impacts data protection, discuss the main sectors of implementation, and provide a comprehensive guide on building your own KYC verification system from scratch.

What is KYC verification?

Let’s start with the basics. KYC verification is imperative for organizations that are subject to legal requirements. It allows for the prevention of fraudulent activities and mitigating connected risks by determining and verifying customers’ identities. KYC is compulsory for most companies, especially those serving heavily regulated industries like finance. The KYC process usually involves gathering and verifying customer information, such as personal information, identification documents, proof of address, and financial records.

By carrying out a compelling KYC verification procedure, businesses can shield themselves and their customers from such risks as:

• identity theft and fraud
• money laundering
• terrorist financing
• regulatory non-compliance
• reputation and reputational risk
• counterparty risk

KYC vs AML

KYC (Know Your Customer) and AML (Anti-Money Laundering) are interconnected, but still distinct procedures in the realm of financial laws.

• KYC is the procedure that organizations handle to prove the identity of their customers and establish the legitimacy of their activities. KYC is one tool used within an AML program to eliminate the possibility of a financial crime.

• AML is a broad concept that comprises laws, regulations, measures, and procedures followed by businesses and organizations to fight money laundering and illegitimate earning that could be used for illicit activities. AML involves the following elements:

1. Transaction monitoring. Financial institutions oversee transactions for dubious or suspicious activities by identifying and analyzing patterns and interconnections. If any unexpected or risky transactions are found, they set off further inspection.
2. Enhanced Due Diligence (EDD). EDD is a more in-depth examination applied to higher-risk customers. It required collecting more information and handling detailed research to grasp the customer’s background, business activities, and risk factors. EDD may hold proving the source of funds, checking politically exposed persons (PEPs), or conducting site visits.
3. Compliance education and internal supervision. Organizations educate personnel systematically to ensure they are aware of AML laws, regulations, and red flags for suspicious activities. They also set up strong internal supervision and control, guidelines, and procedures to prevent money laundering and comply with relevant regulations.
4. Risk-based approach. AML practices evaluate risk factors such as customer profiles, products, locations, etc. Institutions adapt their AML methods to the degree of risk – the procedure is more stringent when it comes to higher-risk customers, high-value transactions, or specific jurisdictions.
5. International cooperation. AML’s strategy requires international joint effort and information sharing between organizations, law enforcement institutions, and regulatory authorities to identify and prevent cross-border money laundering and maintain global AML measures.

While KYC software focuses on customer-facing procedures, AML concentrates on the organization itself and the actions it must take to resist financial crime and prevent money laundering. Both KYC and AML are fundamental for organizations to maintain the integrity of the financial system and prevent bankrolling illegal activities.

KYC integrations and data protection

Establishing a KYC integration enables companies to verify their customers’ identities and ensure the security of their personal information through diverse methods and measures:

1. Secure data transmission. KYC software integrations often employ secure channels for data transmission: encryption protocols such as HTTPS or secure API connections.
2. Data minimization. KYC integrations aim to collect and retain only the necessary data required for the verification procedure.
3. Access control and authorization. Only authorized personnel with specific roles and responsibilities should have access to customer information. Access allowance should be allocated based on the principle of least privilege (POLP).
4. Data encryption and storage. Customer data is typically hoarded using robust encryption methods. Encryption ensures that even if illegitimate access takes place, the data remains unreadable and unusable without the decryption keys.
5. Compliance with data protection laws. KYC integrations should adhere to relevant data protection laws, such as the General Data Protection Regulation (GDPR) in the European Union or the California Consumer Privacy Act (CCPA) in the United States.
6. Consistent security audits and assessments. KYC integrations should undergo regular security audits and assessments. It can carry out penetration testing, vulnerability scanning, code reviews, and internal and external audits to maintain the integrity and security of customer data.
7. Data retention and destruction. Customer data must be retained only for as long as necessary to fulfill regulatory requirements. Once the retention period expires, proper data destruction methods should be applied to permanently erase information.
8. Vendor due diligence. If utilizing a third-party KYC software solution or integration, handling accurate vendor due diligence is important.

How does KYC verification work?

Let’s explore the KYC verification process step-by-step:

1. Customer onboarding. Customers must provide the required and relevant information, such as proof of address, occupation, and source of funds.
2. Document submission. Customers must submit the required documents.
3. Initial audit. Submitted documents are checked to ensure they are complete and valid. This includes checking if the documents are up to date and if the data provided meets the requirements.
4. Backend identity verification. The documents are reviewed and cross-checked against authorized databases and external sources.
5. Risk assessment. Customer reliability is assessed by checking their background, country of residence, occupation, source of funds, and the nature of the banking relationship.
6. Enhanced Due Diligence (EDD). High-risk customers may require more thorough background checks, including the collection of additional information.
7. Decision making. Once the KYC review is completed, a final decision is made.

KYC solutions and processes may vary between companies depending on their size, customer base, and technological capabilities, and may involve a combination of methods.

The Sectors Subject to KYC Laws

When it comes to KYC, fintech, banking, and similar industries come to mind first. However, what about other sectors?

Insurance

KYC is widely used in insurance to authorize and verify the identity of policyholders, as well as to determine their risk profiles. In addition, KYC procedures enable insurance companies to detect and prevent fraud, which is a dominant issue in the industry.

Securities and investments

Brokerages, investment advisors, mutual funds, and other organizations in the securities and investments sector also perform KYC procedures. This helps identify and verify investors, understand their investment objectives, confront money laundering, and conduct decent due diligence.

Gaming and online gambling

Online gambling platforms are obliged to handle KYC procedures to verify the identity and age of players and comply with corresponding gambling regulations.

Real estate

In some regions, real estate transactions are subject to KYC regulations. Developers, agents, and brokers may need to enforce KYC procedures to verify the identities of buyers and sellers participating in high-value property transactions.

KYC in crypto

In the crypto sphere, KYC is widely used to fight money laundering, terrorist financing, and other illicit activities. However, KYC can be more intricate in the crypto sphere than in other fields due to the global reach of cryptocurrency transactions, parties’ anonymity, and the difficulty of establishing the true owner of a crypto wallet. To deal with these hurdles, some companies are considering the use of blockchain technology to enhance KYC procedures. Let’s further explore this topic.

Key problem areas of KYC in crypto

As mentioned previously, KYC requirements in the crypto industry can be more challenging than in traditional banking systems. Below, we explore the major complications.

Anonymity and pseudonymity

Cryptocurrencies were designed to offer users high levels of anonymity and pseudonymity for transactions to be made without revealing parties’ real-world identities. However, this feature poses challenges for KYC procedures as it can be difficult-to-impossible to link a user’s crypto wallet or address to their real-world identity. Therefore, alternative and efficient KYC procedures are needed to enable accurate user identification without compromising their privacy.

Decentralization and lack of central authority

Cryptocurrencies operate on decentralized networks that are not controlled by a central authority. This makes crypto more private and secure. However, it also complicates the process of setting up a clear way to conduct KYC and ensure consistent compliance across various crypto platforms and exchanges.

Cross-border transactions

Cryptocurrencies have brought accessibility and safety to international transactions. However, due to varying regulations across countries and the potential for cryptocurrencies to evade traditional identification methods, it can be challenging to carry out decent KYC checks. Addressing this issue requires a more advanced KYC approach.

Lack of standardization

Compliance with regulations can be complicated due to varying requirements and verification procedures. Inconsistencies and potential security gaps can compromise user information and assets. Standardization of KYC procedures can promote consistency, create a more secure environment, and foster trust in the industry.

Regulatory landscape

Cryptocurrency regulations are constantly evolving, and companies must keep up with changes and understand each jurisdiction they operate in. This requires thorough research and analysis, as well as the ability to adapt quickly.

Blockchain technology for KYC

Blockchain technology allows for enhanced KYC verification due to its ability to securely store customer data in a decentralized manner. Cryptography adds an extra layer of protection, reduces redundancy, and increases security. It also enables customers to reuse their verified information across different entities, reducing repetitive verification. Blockchain-based KYC also provides a transparent and auditable trail of customer onboarding and verification activities, making compliance easier for businesses and regulatory authorities.

Let’s explore the key benefits that implementing KYC processes using blockchain technology can offer.

• Enhanced security. Blockchain technology protects sensitive customer data by decentralizing the storage across multiple nodes and using cryptography to add an extra layer of protection.
• Data integrity and transparency. Blockchain allows for transparent and unalterable record-keeping, ensuring data integrity and reliability. Transparency promotes trust between businesses and their customers, as they can verify the accuracy and maintenance of their information on the blockchain.
• Cross-platform and interoperability. Traditional KYC requires customers to submit the same information to different entities. Blockchain-based KYC eliminates this repetitive process, as it securely stores data and shares it with authorized parties on demand. This enables interoperability among organizations and platforms, so customers can reuse their verified information with other participating entities, which eliminates the need for repetitive verification.
• Better CX. KYC processes designed with customers in mind create a streamlined, more convenient customer journey without the hassle of submitting physical documents, filling out forms, or undergoing extensive verification processes.
• Enhanced privacy control. Blockchain-based KYC grants customers more control over their data. They can provide access to specific details of their information while maintaining privacy and control.
• Compliance and auditability. Blockchain-based KYC systems simplify regulatory compliance by providing a transparent and auditable trail of customer onboarding and verification activities, making the audit process easier for regulatory authorities and businesses to demonstrate their compliance more efficiently.

Building your own KYC from scratch

Now that you are aware of all the essential details that may come in handy, it is time to explore the step-by-step guide on custom KYC development.

1. Identify legal and regulatory requirements. Understanding your legal and regulatory obligations is crucial. This includes knowing the laws and governing bodies in your industry and jurisdiction, as well as any updates or changes that relate to and may affect your business. Staying up-to-date will help you avoid legal issues and penalties.
2. Define objectives and requirements. The clearer the vision is at this stage, the better the outcome will be. Define the customer information you need to collect. Will it be basic or detailed? Will it include financial history and source of funds? You should also define verification level and risk assessment criteria to manage risks effectively. A basic scoring system can be implemented by assigning scores to specific criteria, such as age. For example, applicants who are under 21 or over 60 can receive a middle score, while those between the ages of 21 and 60 can receive the highest score.
3. Gather documentation and information. Identify the required documents and information you need to collect from customers to verify their identity and assess the associated risks. This may include government-issued identification documents, proof of address, financial statements, business registration documents, and more.
4. Establish verification processes. Define the methods that you will use to make sure the provided documents are real. This may involve manual checks or using automated document verification tools, third-party data providers, or identity verification services.
5. Risk assessment and scoring. Develop a risk assessment framework to evaluate the risk associated with each customer. Define risk factors such as customer type, transaction volume, geographic location, and source of funds. Assign risk scores to customers based on these factors.
6. Implement technology infrastructure. Set up the necessary technological infrastructure to support your KYC system. This may include database management systems, secure storage for customer information, encryption mechanisms, and access control measures to protect sensitive data.
7. Data privacy and security. Establish robust data privacy and safety measures, such as encryption, access controls, audit logs, and regular security assessments.
8. Develop KYC policies and procedures. Document the KYC policies and procedures that outline the step-by-step processes for customer onboarding, verification, risk assessment, ongoing monitoring, and reporting suspicious activities. Ensure these policies are aligned with legal and regulatory requirements.
9. Personnel training. Train your employees on the KYC policies, procedures, and legal requirements. Educate them on recognizing red flags, conducting due diligence, and reporting suspicious activities. Regularly update their knowledge to stay abreast of evolving AML and KYC requirements.
10. Ongoing monitoring and compliance. Implement mechanisms for ongoing monitoring of customer activities to identify any changes in risk profiles or suspicious behaviors. Establish processes for periodic reviews and updates of customer information, as well as compliance with regulatory reporting requirements.

Summary

Building your own KYC system has multiple benefits and is worthwhile if you expect your customer base to grow. However, it is a rigorous task that requires impeccable technical skills, deep industry knowledge, and relevant experience. In addition, it is important to keep in mind that building your own KYC system requires ongoing maintenance and updates to ensure compliance with evolving regulations and to address new risks. Therefore, it may be advisable to outsource KYC software development to an experienced team.

Itexus has been helping businesses leverage technology to solve challenges and reach goals since 2013. We have extensive hands-on experience in building software solutions across industries, including KYC for financial services. If you have a concept for a KYC solution or require guidance, we are here to assist you. Contact us to find out how we can help.

The post How to Build Your Own KYC from Scratch first appeared on Itexus.

AI-Based Software Benefits for Insurance

Streamlined Processes = Time and Cost Reductions

Insurance processes involve a lot of data and have a high potential for errors. Insurance automation is an efficient way to collate and process all that data, and can eliminate repetitive tasks like manually inputting customers’ information into different systems and performing manual calculations. Using AI insurance software for such routine tasks guarantees accurate results in significantly less time than it would take an employee. This means that you need to hire fewer employees to perform these activities.

Improved Customer Experience

AI in insurance is widely used in conversational bots, or chatbots, that can already understand customers better than humans. This software automates the most popular customer service interactions, helping businesses provide better service and support. The market is full of different chatbots, but it is essential to choose or create one that is insurance-focused. This will create more value for both customers and insurance business owners.

High Performance

High performance is a direct result of increased quality and speed of Insurance claims processing and reduced fraudulent claims because it’s tracked and alerted by the AI-based claims management system. And again as one more result here we get cost and time-saving for the Insurance businesses — automating menial tasks, claims processing, and fraud detection.

Secure Business Management

Developing an insurance agency management system is essential for those Insurance companies that have big plans. All insurance businesses deal with high security and accurate data that is the cornerstone of the whole industry. Ready-made and custom insurance management agency platforms are able to cover essential security and data accuracy needs.

AI Implementation Use Cases in Insurance

AI Models for Insurance

Usually, AI-based software can be trained from scratch using a Machine Learning framework or purchased as a pre-trained model. Pre-trained models are typically specialized in certain areas, such as voice or image recognition, text analytics, biometrics, sentiment detection, decision management, or document processing.

Recommendation Engine

The system analyses the records and results and then suggests the appropriate options. For example, we have developed a recommender engine that assessed clients’ information and suggested the best-fitting insurance plan.

Text Analytics and NLP

Text analytics techniques allow analyzing the text of insurance claims, settlement notes, etc. NLP can be of help in detecting claims that are potentially liable to subrogation, social media analysis in order to get early insights on claims from the company’s portfolio (especially useful for corporate insurance and private health insurance), and many other tasks involving various forms of text as an object of analysis.

Pattern/Anomaly Detection

Machine learning can help classify data points as either normal or anomalous. For instance, common patterns may be detected in claims from multiple accidents, which could indicate organized fraud.

Automated Decision Management

Real-time automated decision-making is now a reality due to advances in artificial intelligence and machine learning. Consumer demand for instant services has also played a role in this development. This means that insurers have no choice but to use automated means to rapidly process information for decision-making.

Natural Language Generation (NLG)

Natural Language Generation (NLG) has great potential for automating the generation of reports and contracts in the insurance field. The use of AI-based software for these tasks offers great scaling potential and enables the maintenance of consistently high quality.

Intelligent Document Processing (IDP)

Insurance companies can greatly benefit from document automation. Intelligent document processing can help efficiently handle the repositories of day-to-day paperwork and the unstructured data they contain, as well as validate the received data.

Biometrics

Insurance companies can now obtain a more accurate picture of their clients’ risk profiles, thanks to the vast amount of data collected from smart devices such as phones, fitness trackers, and GPS systems in cars. This leads to more precise insurance premiums.

To Sum It Up

AI in the insurance industry improves customer service and performance, reduces operational costs, enhances employee performance, and speeds up processes, ultimately helping insurers attract more clients. As technology continues to advance, particularly in the field of artificial intelligence, the landscape of the insurance industry will continue to evolve. Consider selecting the right technology partner, such as Itexus, to incorporate AI process automation into your insurance business.

The post Insurance Automation: AI Implementation Use Cases first appeared on Itexus.

Relevant statistics support the growing significance of legal marketplaces in the industry. According to a recent report by Statista, the global legal services market is projected to reach a staggering $1.1 trillion by 2026. This exponential growth can be attributed, in part, to the rise of legal marketplaces, which have gained traction worldwide. A study by Thomson Reuters found that 78% of surveyed law firms in the United States are considering greater tech use to improve their performance.

This comprehensive guide will delve into the intricacies of legal marketplace development, exploring the key factors driving its success and its transformative impact on the legal ecosystem. Whether you are a legal service provider, a tech entrepreneur, or a client seeking legal assistance, this guide will equip you with the knowledge necessary to harness legal marketplaces’ power effectively.

Digital Marketplaces Popularity

With the advent of technology and the increasing reliance on digital platforms for various services, the legal industry has witnessed a significant shift toward digital marketplaces. For several compelling reasons, these online platforms have gained immense popularity among clients and legal professionals.

Why Choose the Digital Marketplace?

Digital marketplaces offer unparalleled convenience and accessibility to clients seeking legal services. Gone are the days of searching through directories or relying solely on personal referrals. With just a few clicks, clients can access a wide range of legal experts, compare their profiles, read reviews, and make informed decisions. This accessibility eliminates geographical barriers, allowing clients to connect with legal professionals worldwide, regardless of their physical location.

Traditional legal processes can be time-consuming and cumbersome. Digital marketplaces simplify the processes, from finding the right legal professional to handling payment and document exchange. Clients can submit their legal requests, specify their requirements, and receive tailored proposals from qualified lawyers or law firms. This streamlined approach saves time and reduces the administrative burden, making legal services more efficient and cost-effective.

Digital marketplaces offer clients access to diverse legal professionals with specialized expertise. Whether it’s corporate law, intellectual property, immigration, or family law, clients can find the right expert for their needs. This wide range of options empowers clients to select the most suitable legal professional who aligns with their goals, budget, and desired experience level.

Transparency is a crucial aspect of digital marketplaces. Clients can review and compare legal professionals’ profiles, qualifications, and ratings before making a decision. These platforms often provide an opportunity for clients to leave reviews and ratings based on their experiences, which further helps in building trust and making informed choices.

The digital marketplace revolution has reshaped the legal landscape, bringing a new era of accessibility and efficiency to the forefront.

What Is a Legal Marketplace?

In essence, a legal marketplace solution is an online platform that connects clients needing legal services with professionals who offer their expertise through the platform. These platforms act as intermediaries, facilitating the exchange of legal services conveniently and efficiently.

Like other digital marketplaces, such as those for goods or services, legal marketplaces provide a virtual space where clients and legal professionals can connect and engage.

Who Can Use a Legal Marketplace and How?

Legal marketplaces are designed to cater to a wide range of users, including individuals, businesses, startups, and even other law firms. Anyone needing legal services, regardless of location or industry, can benefit from a legal marketplace. The process typically involves the following steps:

• Registration and Profile Creation. Clients and legal professionals register on the platform and create detailed profiles. Clients provide information about their legal needs, while service providers showcase their expertise, experience, and qualifications.
• Legal Service Requests. Clients submit their legal service requests, outlining their specific requirements and the nature of the assistance they seek. These requests may include details about the type of case, desired expertise, budget, and timeline.
• Proposal Submission. Legal professionals browse the available service requests and submit tailored proposals to clients they believe they can assist. Proposals often include details about their approach, estimated costs, and relevant experience.
• Engagement and Collaboration. Upon receiving proposals, clients review the submissions and choose the legal professional they wish to work with. Once selected, the client and the professional can communicate, collaborate, and work together to address the legal matter at hand.

Benefits of a Legal Marketplace

Legal marketplaces offer numerous benefits for both legal professionals and their clients.

Increased Accessibility

A legal platform for lawyers breaks down geographical barriers, allowing clients to access legal services from professionals around the world. Similarly, service providers can expand their reach and connect with clients they might not have otherwise reached with their attorneys’ on-demand services.

Cost-Effectiveness

By leveraging a legal marketplace, clients can compare different proposals and select the best fit for their budget and requirements. Legal professionals can also streamline their practice and reduce marketing costs by utilizing the platform to attract clients.

Time Efficiency

The platform’s streamlined process saves time for both clients and legal professionals. Clients can find suitable advisors more quickly, while legal professionals can focus on delivering their services instead of spending excessive time on marketing and client acquisition.

Quality Assurance

Legal marketplaces often include review systems and ratings, allowing clients to make informed decisions based on the experiences of others. This promotes transparency and accountability and ensures the delivery of high-quality services.

Lawyers marketplace has revolutionized the way legal services are accessed and delivered. Their user-friendly interfaces, broad reach, and efficient processes make them an attractive option for clients seeking legal assistance and legal professionals looking to expand their client base.

Starting a Legal Marketplace

Creating a thriving lawyers marketplace requires careful planning and strategic execution. Check out these key considerations when starting a legal marketplace.

Formulate a Concept

Before diving into the development process, it’s crucial to formulate a clear concept for your legal marketplace. Define the specific niche or focus area, whether connecting clients with lawyers in a specific practice area or providing a platform for legal professionals to offer their services directly. Research the market demand, identify any existing gaps or pain points, and determine how your lawyers marketplace can address those needs effectively.

Consider Using a Minimum Viable Product (MVP)

Building a legal platform for lawyers can be complex and resource-intensive. Consider adopting the Minimum Viable Product (MVP) approach. Start with a scaled-down version of your platform, focusing on core functionalities and essential features. This allows you to launch and test the market response with minimal investment. By gathering user feedback, you can iterate and refine your platform based on real-world insights, enhancing its value and addressing any potential challenges.

Think about Design

Design plays a crucial role in the success of your platform. It should be user-friendly, intuitive, and visually appealing. Focus on creating a seamless user experience, ensuring clients can easily navigate the platform, search for legal professionals, submit requests, and communicate with them. 

Additionally, consider incorporating secure payment processing, document sharing, and messaging systems to facilitate efficient collaboration between clients and legal professionals.

Choose the Development Team

Selecting the right development team is essential for turning your lawyers marketplace concept into a reality. Look for a team with expertise in marketplace development and legal software development. They should understand the unique requirements and challenges associated with legal services. 

Consider their technical skills, portfolio, client testimonials, and ability to deliver within your desired timeline and budget. Collaborating with a competent development team will ensure a smooth development process and a robust, reliable legal platform for lawyers.

Starting a lawyer marketplace requires careful planning, attention to detail, and a focus on user experience. Formulating a solid concept, leveraging the MVP approach, prioritizing design, and choosing the right legal software development team can lay a strong foundation for your legal marketplace’s success. Remember to continuously gather user feedback, iterate, and adapt to ensure that your platform meets the evolving needs of clients and legal professionals.

Legal Marketplace Functionalities

In a legal platform for lawyers, various functionalities ensure a smooth and efficient experience for legal professionals and clients. These functionalities are the platform’s backbone, that enables seamless communication, secure transactions, and effective collaboration. 

Here are some key features you can expect in a legal solution:

• User Profiles. Lawyer marketplaces typically provide user profiles for both lawyers and clients. These profiles allow lawyers to showcase their expertise, experience, and credentials while clients can provide information about their legal needs and preferences. User profiles help establish trust and credibility within the marketplace.

• Search and Matchmaking. A robust search functionality connects clients with lawyers specializing in their required legal areas. The marketplace solution should offer filters and advanced search options to help clients find lawyers based on their location, practice areas, ratings, and other relevant criteria. Additionally, a matchmaking algorithm can enhance the search process by suggesting suitable lawyers based on the client’s specific requirements.

• Communication Tools. Built-in messaging systems or chat features allow lawyers and clients to interact, exchange information, and discuss legal matters. Secure and confidential communication channels ensure privacy and confidentiality while facilitating smooth collaboration between parties.

• Document Sharing and Collaboration. Legal matters often involve sharing and collaborating on documents. A legal platform for lawyers should provide a secure platform for lawyers and clients to share, review, and collaborate on legal documents, such as contracts, agreements, or case files. Version control, commenting, and real-time editing capabilities enhance productivity and streamline the document management process.

• Appointment Scheduling and Reminders. An integrated calendar and appointment scheduling features help streamline the process of setting up consultations, meetings, or court appearances. Automated reminders ensure that lawyers and clients stay informed about upcoming appointments, reducing the chances of missed meetings or delays.

• Payment and Billing. Lawyers marketplace should offer secure and reliable payment processing capabilities. Clients should be able to make payments for legal services directly through the platform, while lawyers can easily track and manage their billing. Transparent fee structures, secure transactions, and invoicing functionalities contribute to a seamless payment experience.

Optional Features

Besides the core functionalities, some legal marketplaces may offer optional features that enhance the overall user experience. A rating and review system allows clients to provide feedback on lawyers they have worked with. This feature helps build trust and assists future clients in making informed decisions when choosing legal professionals.

Some marketplaces may provide access to a library of legal document templates, such as contracts, wills, or lease agreements. These templates can be a starting point for clients requiring standard legal documents.

Virtual meeting rooms enable lawyers and clients to conduct meetings, consultations, or depositions remotely. This feature is precious for users who cannot meet in person due to geographical constraints or other circumstances.

Advanced case management tools can help lawyers organize and track their ongoing cases. These tools may include features like task management, deadline tracking, and document storage, streamlining the workflow and increasing productivity.

Possible Issues and Solutions

Lawyer marketplace solution offers numerous advantages, but certain challenges can arise. It’s important to be aware of potential problems and have solutions in place to address them.

Trust and Credibility

Establishing trust between lawyers and clients can be challenging in an online marketplace. To address this, the lawyer marketplace can implement a thorough vetting process for lawyers, including verifying their credentials and professional licenses. Encouraging clients to provide honest reviews and ratings can also build trust and transparency within the platform.

Data Security and Privacy

Legal matters involve sensitive and confidential information. The legal solution must prioritize data security and privacy to protect client and lawyer data. Implementing robust encryption protocols, secure storage systems, and regular security audits can help safeguard sensitive information and build user confidence.

Quality Control

Maintaining a high standard of legal services is crucial in a legal solution. Some potential solutions to ensure quality control include implementing a rating and review system for lawyers, establishing guidelines for ethical conduct, and providing avenues for clients to report any issues or concerns. Regular monitoring and evaluation of lawyer performance can also help maintain quality standards.

Dispute Resolution

In the event of disputes between clients and lawyers, the legal solution should have a straightforward dispute-resolution process in place. This can include mediation or arbitration mechanisms within the platform or the involvement of a neutral third party to help resolve conflicts. Timely and efficiently resolving disputes is essential to maintain trust and satisfaction among users.

Regulatory Compliance

Lawyer marketplace must navigate complex legal and regulatory frameworks to ensure compliance with applicable laws. Collaborating with legal experts and staying updated on relevant regulations can help legal marketplaces navigate compliance challenges effectively. Implementing robust identity verification processes and adhering to anti-money laundering (AML) and know-your-customer (KYC) regulations can also contribute to regulatory compliance.

By proactively addressing these potential problems and implementing suitable solutions, the legal solution can provide a secure and trustworthy platform that meets the needs of both lawyers and clients.

The Future of Legal Marketplaces

The future holds significant potential for transforming the legal industry. As technology advances and the demand for convenient and accessible legal services grows, the lawyer marketplace is poised to play a pivotal role in shaping the future of legal practice. 

Here are some key trends and developments that indicate legal marketplaces’ direction.

The future of legal marketplaces holds immense potential for transforming the legal industry. As technology continues to advance and adapt to the unique needs of the legal sector, legal marketplaces are poised to become integral platforms that connect lawyers and clients, streamline legal processes, and provide accessible and efficient legal services on a global scale. 

By embracing emerging technologies and trends, legal marketplaces have the opportunity to reshape the way legal services are delivered and accessed in the years to come.

Summary

Legal marketplaces are evolving to meet the changing demands of the legal industry. Legal marketplace development is an ongoing process with immense potential for transforming the market. As technology advances and client expectations evolve, legal marketplaces become crucial in connecting lawyers and clients, streamlining the experience of all parties, and providing accessible and efficient legal services.

The development of legal marketplaces offers several benefits, including increased access to legal services, improved efficiency, and enhanced transparency. Find the right team with expertise in both marketplace development and legal software development to ensure the successful and quick launch of your legal marketplace.

The post Legal Marketplace Development: Guide first appeared on Itexus.

The nature and life cycle of smart contracts explained

Smart contracts are programs that automatically execute given the predetermined conditions are met. They are used to streamline workflow and automate agreement execution. This way all parties get their tasks done in the most time- and resource-efficient manner.

But how is it possible? How do smart contracts work? Their execution is based on simple “if/when…then…” algorithms. For example, smart contracts can be used for conducting payments, issuing tickets, or sending alerts. As soon as an operation is completed, it is already written on the blockchain and can’t be altered. Moreover, only authorized parties can get access to viewing results.

The life cycle of each smart contract includes four phases that will be described below.

1. Creation

This stage can be described as a preparatory one. It includes negotiations between parties as well as contract design, implementation, and validation. Exactly at this phase parties need to agree on the conditions, goals, and content of the contract. And this process is very similar to what happens when parties discuss a traditional contract. But in the case of smart contracts, all parties should have their blockchain wallets. 

As soon as conditions are discussed, the contract should be transformed into a code. If any of the parties have any objections, it is better to discuss them and introduce changes before the codified version of the contract is uploaded to the distributed ledger. Why? The reason for that is hidden in the blockchain nature. Once a smart contract is placed on the blockchain, it can’t be amended. The only way out will be to create a new one. 

But even when a smart contract is already stored on the blockchain network, it doesn’t mean that parties have entered an agreement. Otherwise, everyone could easily publish a smart contract and transfer any obligations to a random wallet address.

2. Freezing

When a smart contract is submitted to the blockchain, it must be confirmed by nodes. These are the stakeholders and their devices authorized to confirm the contract. They charge a fee for their services to prevent the unlimited flow of smart contracts in the network.

Smart contracts for insurance companies, as well as for other industries, after freezing are made public. This is due to the usage of the public ledger for contract submission.

At this phase, transfers to the wallets indicated in the smart contract are not available yet. To enable transfers, authority nodes first need to verify that contract conditions are met by all parties.

3. Execution

Participation nodes read the stored smart contract and check its integrity. Then, an inference engine executes the code. But when does it happen? For execution, inputs from the involved parties and the smart oracles are required. As soon as these inputs that trigger further steps reach the smart contract, a new set of transactions is generated and the status of the smart contract is updated. Then the smart contract is verified again based on the principles of the consensus mechanism, and all the updates are saved on the blockchain.

4. Finalization

After contract execution, the operation and new states of parties are placed in the distributed ledger. All the assets to be transferred now are unfrozen, and the recipient is granted access to them. 

How can insurance companies use smart contracts?

Regardless of the sphere of their application, smart contracts always function the same way. That’s why in this case, there won’t be peculiarities to mention when we are talking about the application of a smart contract in insurance. Nevertheless, it’s worth considering the use cases of smart contracts in this industry.

Claims processing

Representing insurance policies as smart contracts enables more time- and cost-efficient claims processing. Let’s consider a car accident scenario with two drivers involved:

• When one driver submits a claim to the insurer for recovering losses, the company investigates the case in a bid to get the money from the insurer of another driver.
• Meanwhile, the second company also has the claim for this case submitted by another accident participant.

This approach is time-consuming and often results in double work and potential human errors. But putting claims on a smart contract simplifies the process by enabling the automated sharing of required information between all parties and simplifying payment transfer.

Parametric triggers

Placing parametric insurance on a smart contract enables near-instant claim payment. The concept of parametric insurance implies compensation when pre-defined events take place.

Let’s explore the situation when an insurance company has agreed to pay a set sum if the rainfall amount on the insured’s farm reaches a particular level within an agreed period of time. By using a smart contract, the insurer can create a program that will accumulate data from oracles. I.e., this smart contract will keep the data related to rainfall in a particular area. If the set requirements are met and the rainfall amount exceeds the set level, the claim is paid automatically.

Reinsurance

Data sharing between insurance companies can be challenging and time-consuming. It often requires a lot of manual work that is also duplicated as insurance companies may engage several reinsurers for each risk. But blockchain and smart contracts streamline data and payment processing and reduce the amount of work.

When all reinsurance parties have access to the same distributed ledger, they simultaneously get all the data about losses, bonuses, fees, and policies. By applying a smart contract, insurance companies can also automate reinsurance claim settlement. 

Fraud detection and prevention

The risks of fraud in the insurance market remain high. Before smart contracts and blockchain, insurers needed to rely on publicly available data and data provided by private companies. This information is usually incomplete because of regulatory restrictions and data protection policies. This outdated approach paves the way for fraudsters.

But solutions powered by blockchain for insurance companies eliminate the risks by detecting and timely preventing any fraudulent activities. When an insurance claim is placed on the ledger, it can’t be changed which is already a crucial point for fraudsters. Moreover, it’s available to many insurance companies at once which facilitates coordination between them. When a claim is paid, this fact will become known to all the insurers that view this claim in the ledger. This way, any suspicious behavior (e.g., claim duplication) is identified instantly.

Customer onboarding

Smart contracts also allow for reducing the time needed to onboard new clients. Thanks to blockchain, it’s enough to add the personal details of a customer only once. If a person has used an insurer’s services and that company has put all the data on-chain, a new insurer or intermediary won’t need to duplicate this information – they can use the available data. Along with automated onboarding, smart contracts can also help insurance companies to save on KYC and AML processes.

How do insurance companies benefit from smart contracts?

The aforementioned smart contract and blockchain insurance use cases to prove the technologies’ efficiency in the industry. Now, let’s briefly summarize the new opportunities and advantages that they bring to insurance companies.

• Less fraud, more transparency. Having access to their clients’ claims histories, insurers can identify behavior trends and detect suspicious patterns. Moreover, if a client has submitted the same claim to another insurer, it will also be seen.
• Task automation. Smart contracts automate and secure multiple processes by excluding intermediaries. They also reduce the risk of human error by eliminating human involvement.
• Faster claims processing. Smart contracts speed up claim processing. As all the required data is kept on a public ledger, it won’t take long to verify a claim.
• Policy documents safety. Storing documents on the blockchain eliminates the risk of data loss or mistaken deletion.

How to develop a smart contract for insurance?

To introduce smart contracts to your insurance business, it’s advisable to cooperate with skilled and experienced blockchain experts. Let’s explore the overall process of smart contract development so that you get a general idea of the process.

Step 1. Choose a blockchain and design a token

First, you need to pick a platform for your smart contracts. Ethereum is the most popular choice today. It provides access to a rich ecosystem of Dapps and tools that allow developers to create, test, and deploy smart contracts. It also allows for designing tokens to perform particular functions in smart insurance contract execution. At this step, you also need to define the exact function and the role of this token.

Step 2. Develop a smart contract

Then, it’s time for coding. If you are building Ethereum smart contracts, you will need to use the Solidity programming language and EVM (Ethereum Virtual Machine) for their creation and implementation.

Step 3. Test

Before deploying a smart contract on the blockchain network, you need to test it and make sure it works as expected. The best practice is to use autotests.

Step 4. Deploy

The exact steps depend on the tool you use. There are two popular tools for Ethereum smart contracts deployment – Hardhat and Truffle. In a nutshell,  to deploy the smart contract, you send an Ethereum transaction containing the compiled code of the smart contract. Note that at this step you don’t specify any recipient. Upon deployment, the contract is assigned an Ethereum address.

Step 5. Maintain and support

Like any other software tool, smart contracts need to be maintained and supported after deployment. You can outsource it to an external team (as well as the overall smart contract development) with relevant skills.

Summary

Both insurers and their clients benefit from smart insurance contracts. Insurers can leverage the technology to automate claims processing and verification, reduce operating costs, and streamline clients’ onboarding. Clients, in turn, enjoy better insurance experience and faster claims payments.

Though it’s too early to speak about the mass adoption of smart contracts within the industry, their application can become a substantial competitive advantage. Want to introduce smart contracts into your insurance business? We’ll pick and implement the most suitable option for you. Contact us to learn how we can help.

The post Smart Contracts Development for Insurance Companies first appeared on Itexus.

To gauge the extent to which automation has impacted the business landscape, let’s take a look at some numbers:

• 66% of companies have been able to increase revenue by using AI technology in their automation solution.
• 80% of businesses have seen an increase in leads as a result of marketing automation.
• 88% of SMBs say automation has enabled them to compete with larger companies by enabling them to act and close leads faster, spend less time on routine tasks, reduce errors, and provide better customer service.

With all the benefits automation offers businesses, it’s clear that it will strengthen its position even further. In this article, we’ll guide you through customer service automation in the finance sector and talk about the technologies used to develop smart and efficient insurance and banking automation solutions.

Why Automate Customer Service in Banking, Insurance, and Financial Sectors?

Improved efficiency

Of course, an automation solution is no substitute for human workers. However, it significantly reduces shared effort by taking over simple, repetitive tasks and allowing employees to focus on tasks that require creativity and human touch. Through intelligent automation, banks and insurance companies can reduce the overall resources spent on customer service and provide greater efficiency. To better understand how automation is impacting your CS department performance, take a look at these statistics:

• reduction in processing times by 78%,
• decrease in error rate from 29.7% to 2.0%,
• doubling the number of accounts processed,
• 28% reduction in average handling time (AHT) for compliance checks.

Lower costs and overheads

Having dedicated resources to answer repetitive calls incurs costs in two ways: you have to hire more agents to handle the additional work, and agent turnover due to dissatisfaction with the work increases, leading to new hires and additional training costs.

Automation in customer service and support saves time and money you would have otherwise spent hiring and training agents. Plus, there is typically only a one-time fee to implement automation systems, and companies can upgrade automation tools whenever needed.

Real-time data management and processing

One of the biggest challenges for the financial services and insurance industry is collecting, processing, controlling, and analyzing millions of pieces of unstructured and fluctuating data. Customer service automation software not only allows companies to process large amounts of data but also minimizes human error. Real-time data processing is widely used in risk management, intelligent cash management, trade monitoring, and many other cases.

Better customer experience

Customers’ diverse priorities, needs, and preferences are forcing banks, financial service providers, and insurance companies to redefine their approach to customer service. AI tools can now track and analyze customer data (demographics, behavior, location, etc.) and determine the identity of the customer. This allows companies to provide the best service to their customers, exponentially improving the overall customer experience. Moreover, service automation enables customers to get the information at a time of their choice. Any form of self-help is available 24×7.

Incorporating both automation and artificial intelligence is crucial for optimizing operational efficiency, but it’s equally essential to maintain 24/7 phone contact in order to guarantee customer satisfaction and loyalty. While automation and artificial intelligence excel in various aspects, such as data analysis and process streamlining, they have yet to fully replicate the personalized, human touch that fosters emotional connections. To ensure customer loyalty, offering one-to-one contact provides warmth and creates a unique, personal bond that technology alone cannot replicate.

Let’s explore the onboarding process in terms of service automation. Customers can now fill out all the necessary forms, verify their IDs, and sign documents through an application without having to speak to a bank or insurance agent in person.

Technologies Used for Automation of Customer Service

If you are wondering how to improve customer service in the banking, insurance, and financial services sectors, read on to learn about modern technologies that allow creating smart, efficient, and powerful automation solutions:

• Artificial Intelligence

AI is widely used for automation in banking, as well as for insurance automation. AI-driven conversational bots (chatbots) already know customers better than humans and automate most customer service interactions. Fully automated customer service with chatbots is not yet possible, but it could dramatically reduce the number of employees handling most routine operations. Chatbots can provide a compelling personalized experience by predicting customer intent and helping users engage with products and brands.

• Machine Learning

Machine Learning is used to understand customers, drive personalization, and create convenient and memorable customer experiences. Information from sensors, images, videos, and other digital sources is used to streamline workflows and facilitate automated decision-making.

• Robotic Process Automation

RPA is considered one of the latest achievements in customer service. It is an application that processes transactions, manipulates data or triggers responses, depending on the scope of the request. RPA technology is especially beneficial for regulated industries with high volume and transactional business processes.

• Intelligent Automation

Intelligent Automation (IA) is a combination of AI and RPA. It is used to mimic customer behavior by using applications to find data and transform it into automated business processes and workflows. In customer service, IA can be used to capture valuable data to automatically support and manage customer interactions. It is a supplemental tool that provides customers and agents alike with the information and assistance they need.

• Blockchain

Technology improves access for disadvantaged customers, makes businesses more accountable, and increases security in all types of interactions between businesses and customers. In addition, a blockchain-based loyalty rewards program reduces system management costs with smart contracts that report tracked, secure, and transparent transactions to legacy systems. It reduces costs associated with errors and fraud.

Guide: How to Automate Customer Service

To help you better understand the automation concept and how to apply it in practice, we’ve broken down the customer service automation journey into six steps: from strategy definition to full-fledged automated workflow.

1. Determine the end-state vision and develop a strategy

Successful financial services companies develop an enterprise-wide vision for the future, reimagining how they will be organized and how work will get done – both with the automation capabilities that exist today and the new automation capabilities that will be implemented. It’s important to focus on automating the processes that are critical to the company’s long-term competitiveness. Start with a quick diagnostic to assess the total value at stake, define the company’s goals, and develop a high-level implementation roadmap to achieve those goals.

2. Assemble a team to manage the automation processes

The next step is to establish a well-run center of excellence (COE). It manages the enterprise-wide transformation approach and plays a number of important roles, such as managing supplier relationships, building capabilities, and more. The capabilities of the center should not only be technical, but also strategic, as COE is required to re-imagine groups and organizations, redefine the way people work with technology across the company, and translate new ways of working into measurable efficiencies.

3. Find a tech partner

A close partnership with IT is especially important. A technical partner designs the entire lifecycle of the system, supports development, manages deployment with IT priorities in mind, and provides ongoing maintenance. In a nutshell, you decide which customer problems require a customer service automation solution, and your tech partner identifies which solution is best.

4. Create detailed roadmaps with your tech partner

Some of the changes will happen relatively quickly. However, it often takes several years for banks, insurance companies, and financial firms to implement the transformation across all areas of their business. To be successful in the long term, you need a clear plan for each business unit and function, as well as for the entire company.

5. Define deadlines considering risks

Deadlines help work together toward achieving a shared goal and keep complex, multi-phase customer service automation projects on track. When defining deadlines, be sure to consider various risks to avoid setting expectations too high.

6. Reap the benefits of customer service automation software and the resulting improvement in customer experience!

Summary

Customer service is important to your business because it retains customers, increases sales and profits, and provides you with lucrative long-term relationships. When it comes to automation in customer service, there are a number of specifics to consider to maintain and multiply all achievements of your CS unit.

At Itexus, we’ve helped more than 220 companies in a variety of industries get the most out of their customer service automation efforts and take customers from contact to loyalty. Contact our team if you need a trusted tech partner to automate customer service and improve the overall customer experience.

The post Automating Customer Service in Banking, Insurance and Financial Services Sectors first appeared on Itexus.

A global outlook survey by Deloitte’s Center for Financial Services found that 79% of respondents believe the pandemic uncovered weaknesses in their company’s digital capabilities and transformation plans.

In response, 95% of those surveyed are already accelerating or looking to speed up digital transformation to maintain resilience. Europe and North America seem further along in implementing such plans, compared to APAC.

Considering the challenges insurers all over the world are facing, insurtech leaders ensure their foundation remains strong, as well as the strategies they’re starting to deploy to position themselves for success in the coming years.

This requires digital transformation and automation, and here’s when you need to consider implementing custom insurance software into your business.

We’ve Shortlisted Top 10 Insurance Software Development Companies to Keep an Eye on in 2023

1. Itexus

Over 8 years Itexus builds custom Insurance & Financial solutions. Trusted by 150+ clients Itexus team develops claims management solutions, policy management, underwriting & quoting software, crowdfunding solutions, documents management software, billing & payments solutions, RMS, and more! They help eliminate legacy software, automate manual operations, reduce human errors, improve customers’ experience, and as a result get more clients, reduce costs on operations, and increased revenue.

2. Applied Systems

Applied Systems makes it their mission to spearhead the digital transformation of your business, tapping into new technologies to improve communication. Applied Systems is all about improving communication between staff, leads, partners, suppliers, and more.

3. Adaptik

Adaptik offers a range of flexible and scalable solutions that are specifically designed for property and casualty insurance. The goal is to take complicated workflows and simplify them while identifying “opportunities for sustainable growth”.

4. ISI Enterprise

ISI is a company that was founded over twenty years ago with the goal of modernizing the way that insurers go about their business. Initially focusing solely on property and casualty insurers, they’ve since expanded their offering to cover all areas of the insurance industry.

5. Chetu

Chetu offers custom software development and promises to offer “industry experienced developers on-demand”. These are the guys to go with if you don’t just want something out of the box because they’ll get to know your business and build something specifically for you. 

6. Zfort Group

Zfort Group’s team starts by getting to know you and your customers and walks you through the process to make sure that your software is the best it can possibly be. They cover all the aspects of insurance company software development.

7. Coding Pixel

The company avails the already available advanced tech solutions, like tech solutions, like AI, Big Data, Machine Learning, IoT, to its maximum capacity to make sure your insurance business makes it big in the market. The team of developers is well equipped with the main tech trends in software development in contemporary times.

8. Fortifier

Founded in 2013, this company emphasizes optimizing your insurance processes, reducing costs, and controlling risks meanwhile enhancing the efficiency of your insurance business. The developers are aware of cloud computing, Al & Machine learning, and the right way to adapt to modern technologies and developing software keeping in mind the realities of the markets.

9. VelveTech

The company believes that in insurance, what really matters are digital innovations, unique user experience, and security and compliance. Hence, the developers are aimed at creating insurance software solutions keeping in consideration the aforementioned factors.

10. Serokel

The company aims at providing developmental services to complex tasks by availing blockchain technology. They create secure encrypted insurance company software with protected databases. They integrate BI and Big Data analytics to provide you with solutions that will help you in laying out calculated decisions according to the trends.

*Of course, it’s not a full list of experienced and reliable Insurance software development companies, but it’s quite enough to give you an idea of what the market looks like.

Types of Insurance Software Solutions

Insurance companies need a variety of software solutions to make their work easier. Some of the most commonly used insurance software are claims management systems, document management software, insurance marketplaces, CRMs for agents and brokers, etc. Let’s take a look at what each of these types of software has to offer.

Claims Management Systems

Such systems enable insurers to manage the entire claims lifecycle and streamline claims management workflow, automate claims document creation, manage payments, identify fraudulent claims, and integrate policy administration. A custom claims management system includes just the right set of features a particular company needs to reduce operational costs and financial losses from fraudulent or inflated claims.

CRMs for Agents & Brokers

CRM software for insurance companies is rightly considered the most useful solution for insurance processes. It connects teams, sales channels, call centers, and agents into a unified portal. An omnichannel CRM solution not only enables insurers’ digital transformation but also helps organize prospects and automate activities so agents and brokers can focus on delivering a better customer experience.

Insurance Marketplaces

A digital insurance marketplace connects insurance brokers and companies with their end customers. The most well-known example of this type of solution is the health insurance marketplace, where people without health insurance can purchase one that complies with the ACA (Affordable Care Act). Typically, insurance marketplaces offer advanced filtering options, comparison of selected insurers, integrated online payments, online consultations, an AI-based recommendation engine, and so on.

Underwriting or Quoting Software

Underwriting is crucial to an insurance company because it assesses the company’s risk in insuring a person’s property, health, or life. Underwriting software eliminates manual effort and reduces human error by allowing users to write rules and policies that are automatically executed during the underwriting process. It also improves workflow, enables effective use of underwriting resources, increases transparency, and promotes informed decision-making.

Document Management Software (DMS)

Document management software enables insurers to securely organize, store, and access important documents – e.g., insurance applications, customer statements, contracts, policyholder agreements, etc. Such solutions streamline insurance paperwork, improve insurance compliance, increase document security, and help to assign staff efforts more efficiently.

These are not the only software solutions for insurance companies. Depending on the specifics and needs of the company, they may also use P2P insurance software, policy management systems, risk management software (RMS), one-stop support apps for policyholders, billing and payment solutions, fraud analysis software, and more.

3 Things to Look For In An Insurance Software Development Company

Shortlisting top insurtech companies and deciding on the type of solution is only half the battle, you still need to choose a reliable development partner that will turn your vision into reality. Fortunately, we’ve narrowed down key qualities your insurance software development team should have:

1. Relevant Expertise

Mind the vendor’s track record, whether it previously has worked with clients in the insurance industry and if it has enough resources to fulfill all of your requirements.

2. Reviews on Trusted Resources

The platforms like Clutch and GoodFirms display clients’ reviews. You have to carefully study the customers’ feedback to avoid misunderstanding. Pay attention mostly to the verified customers’ feedback.

3. Business Alignment

It means that both companies should work for one aim and are eager to achieve success in their project. It’s also about communication because it’s the best way to understand whether it will be comfortable to work and stay on the same page while working on a mutual project.

Get a Free Consultation

The highly competitive environment requires insurers to partner with the best insurance software development companies and transform digitally. Such development companies are there to provide custom insurance software solutions tailored to insurers’ specific needs and goals.

Itexus keeps abreast of the latest trends in insurance software development. Over the years, we have gained unique InsurTech expertise by working with both startups and established businesses. Now we are ready to share that expertise with you – drop us a line to transform your insurance business!

The post List of Top 10 Insurance Software Development Companies in 2023 first appeared on Itexus.

According to the report, digitization should be taking place across the entire value chain, including underwriting, distribution, and claims. It is the means to increase efficiency, boost productivity, recruit new talent, and reduce stubbornly high costs. For example, the cost of the claims journey can be reduced by as much as 30%.

However, there are still companies that are reluctant to go digital and have no chance to gain a competitive edge in the future. In this article, we’ll explore the nuances of automating one of the key insurance business processes – claims management – by creating and adopting a claims management system. Let’s discuss its benefits, features, development process, and costs.

What is an Insurance Claims Management System? 

Claims management software is built by insurance software development companies for insurance carriers and agencies to automate the processing of claims on behalf of a client. For example, burglary and theft, fire, wind and hail damage, customer injury, and reputation harm. The system keeps all information related to the insurance product, client, and claim, as well as provides additional analysis to enable proper anti-fraud analysis, damage cost calculation, and other aspects. 

Key Benefits of an Automated Claims Management System

A robust software can streamline claims management and dramatically improve its efficiency helping to reduce operational costs and financial losses from fraudulent or exaggerated claims. By automating their claims management system, car insurance companies in Massachusetts have been able to offer better customer service and reduce the amount of time it takes to settle claims. Take a look at the primary benefits of claims management software:

• Reduces fraudulent claims. With the help of proactive analysis based on previously recorded data, the software swiftly detects fraud or suspicious claims. As a result, an accelerated investigation process, proactive claims monitoring, and prevented payments for fake claims.

• Improves claims processing efficiency. The system eliminates the possibility of human error by automating the entire process. It provides quick access to claim details which are recorded within a centralized system of record.

• Reduces claims management costs through automation and decreased human involvement. In the automated process, trivial claims are resolved with no human involvement, and only non-standard, big or suspicious claims are alerted to additional manual analysis. 

• Improves customer experience. Insurance claims management software encourages customer loyalty, ensuring fast and accurate data processing.

There are off-the-shelf claim management systems on the market. However, many businesses choose to develop their own custom-made software due to some reasons:

1. It’s tailor-made to the specific needs, market niche, client type, and size of your company. 
2. It allows scalability as your business welcomes new clients.
3. It helps avoid license fees and paid subscriptions.
4. It’s compatible with the software already used in the organization. 
5. It may be seamlessly integrated with any third-party software you’ll need in the future.
6. It increases the productivity of your team.
7. It’s supported by the team involved in the development process.

Features that Determine the Cost of Insurance Claims Management System

We’ve singled out 10 features that determine not only the cost of the system but also its effectiveness: 

Automated workflow

It’s end-to-end claims workflows that eliminate operational inefficacies and legacy issues, as well as timely claim routing and notifications. Minimizing manual work reduces the possibility of human errors and improves productivity. The development of this feature can take 200 – 600 hours depending on the workflow complexity. 

Intake wizard

The feature guides the user throughout the claim with questions to ensure all the necessary data is collected. The questions and the whole process can be configured to meet your specific business needs. The development process takes 40 – 120 hours.

Auto-adjudication

The feature also minimizes human involvement by introducing automated workflows to the claims process based on specific rules. Assignment rules are configurable based on the benefit type, the eligibility status, the payment specification, and other criteria. To keep claim durations on track, the rules can also be introduced with due dates. Rule-based adjudication engines may take approximately 200 – 500 hours depending on the complexity of the rules. Many companies use AI algorithms trained on their own statistics to augment and potentially replace rule-based logic. But this usually comes as a second phase.

Case management

The feature allows a claim manager to perform a range of tasks: 

1. View, add, and edit claim details
2. Manage phone calls, medical and return to work events, rehabilitation, documents
3. Write a detailed synopsis
4. Review eligibility rules
5. Make an action plan with detailed steps
6. Attach forms and documents
7. View claim status
8. Export information in PDF format

The development process may take 150 – 500 hours.

Centralized database

Insurance subsidiary companies are often distributed across the country. This feature allows the management to access the files, templates for claims, and any other information. The development process takes 100 – 200 hours.

Policyholder communications

The feature allows policyholders to receive and get timely notifications via any messengers. Approximately the development of this feature takes 80 – 120 man-hours.

Task management

It is more than a to-do list. The feature allows team members to assign and create tasks, see their progress, add comments, delegate subtasks, and set deadline. The development process takes 200 – 400 hours.

Online claims payment

The feature allows the claims management system to automatically calculate payments based on the claim, policy, and benefits information provided. The payment system can be configured to meet your needs, such as consolidating payments or setting up automated scheduling. Clients can choose between different payment methods: by credit card or via online payment systems like PayPal, WePay, 2CheckOut, etc. Realization of this feature takes 80 – 120 hours.

Simple submission process from any device

You can configure different claim forms for different claim processing scenarios with the help of a form builder available via both mobile and desktop web browsers. The final docs can be exported to MS Word, MS Excel, and PDF. The data is also integrated into a task management system. The development process takes 80 – 160 man-hours.

Notifications and alerts

Agents can get notifications about new claims, and alerts about an increased amount of claims. For example, an upsurge in property damage claims when a disaster occurs. The development process takes 40 – 80 working hours.

Administration, Reporting and User Management modules

These modules are an integral part of the whole system. The administration module is the administrator’s interface and allows to process of all configuration operations of the system. The user management module is used for managing user information and providing access to different levels. The reporting module is designed to provide a feature-rich and user-friendly interface for managing reports. The development process of the mentioned above modules takes 100 – 200 hours.

At an average developer’s hourly rate of about $50, it will cost you between $63,500 and $150,000 to implement all of these features. Please note that this is not the final price – contact us for a more detailed breakdown of the cost of developing a custom insurance claims management system.

Claims Management Software Development Process

Itexus provides full-cycle custom software development that fosters the digital transformation of businesses in the insurance sector. Our services range span from analysis and planning to the maintenance of your custom product:

• Analysis and planning. Claims management software development starts with an in-depth study of the insurance market and the client’s business goals. Business Analytics research the competition and identify the main functionality and the budget. They also perform a technical feasibility study to define the various technical approaches that can be followed to implement the project successfully with minimum risks.

• Requirements definition. The next step is to clearly define and document the product requirements and get the client’s approval. The client gets detailed project documentation including the software requirements specification (SRS), high-level UI mockups, as well as software architecture documents with the recommended technology stack, architecture, and third-party components.

• Prototyping and design. A prototype is a working model of a claims management application with some limited functionality. It allows a UX designer to get valuable feedback from the client early on in a project and help understand user-specific requirements. When UX mockups are finished and validated, a UI designer converts them into interfaces with all necessary icons, illustrations, and animations. 

• Software development. That’s when the actual development starts and the product is built. The development process is organized based on Agile and Scrum frameworks. The development team works in two-week sprints demonstrating new features to the client and incorporating his feedback. 

• Testing. At this stage, the product is assessed for errors and document bugs. It doesn’t follow the software development process but rather becomes a subset of all the stages. Testing won’t be complete until the product reaches the quality standards defined in the SRS.

• Deployment into production in the cloud or client’s private data center. The product may first be released for a limited audience. The client tests the system in the real business environment 

• Maintenance. This is when a maintenance team comes into play. They do a range of tasks to guard the smooth performance of the app:

• Detecting and resolving issues.
• Monitoring production servers.
• Creating and deploying system updates and patches.
• Timely updating of security software.

To Sum It Up 

Itexus delivers custom claims management systems for the Insurance industry tailored to unique business operations and challenges. We don’t believe in one-fix-for-all solutions and employ a custom approach to any software we make, be it for clients in Insurance, FinTech, Healthcare, Retail, Hospitality, Education, or any other industry. Contact us to discuss your needs and our team of professionals will offer the most suitable software solution for your business needs and goals.

The post How Much Does It Cost to Develop an Insurance Claims Management System first appeared on Itexus.

Some countries provide better social security, while others are shifting retirement and retirement benefits into the private sphere of citizens’ lives. This means that a statistically average person expects to live another 25-30 years after retirement, and it is a good feeling to be sure that the generated funds will be sufficient. That’s why the need for retirement apps that help with proper budgeting and saving for the future is so crucial these days. Retirement management software is mainly aimed at individuals or financial advisory companies, but recently more and more insurance companies are also interested in offering retirement plans to their clients.

US and European Retirement Reality 

If we talk about the reality in the U.S., there are several ways people can prepare for retirement. The first is to pay Social Security, which varies from $848 to $3890 per month. Most people, especially those who have worked in low-paying jobs or have not been able to be formally employed for a decent amount of years, don’t rely solely on Social Security payments and have begun planning for retirement well in advance. An average amount of money for a comfortable retirement in the U.S. is considered to be $40,000. Part of this amount is covered by Social Security benefits, and the other half depends entirely on people’s ability to save and prepare for retirement. There are two main ways to run a retirement account: through 401(k) plans organized by employers, or through IRA and its modifications. But neither way might be sufficient. In the event of a job change, one’s existing 401(k) plan will remain unprotected unless terminated. However, modern tribulations, especially COVID -19 and many other plausible misfortunes, could cause people to deplete their IRA accumulated savings much earlier, leaving them completely unprotected by the time they need to retire.

The situation in Europe and the United Kingdom is similar, but not exactly the same. Pensions in Europe are paid based on the insurance people had while they were working. For a retired couple in England, for example, £25,000 per year is a comfortable sum, considering that £14,000 of it is paid by the government. In other European countries, pension rates are lower, as is the cost of living. In summary, retirement in Europe, unlike in the U.S., is more socially secure. Nevertheless, retirement solutions can be very useful if one wants to have greater financial opportunities as a retiree.

What is Retirement Management Software?

The main goal of any retirement planning tool is to help people estimate their income, give an idea of retirement needs and current spending models. There are several parameters to consider when using retirement analysis software:

• individual’s future lifespan, 
• expected inflation rate,
• gross income,
• dual income couples,
• taxes,
• different types of bank accounts,
• required minimum distributions,
• changing Social Security rules,
• asset reallocation,
• planned expenses: college education, buying a house, new car, etc.

Everyone’s experience is different. Therefore, financial planning software can only suggest a plan, although with the development of today’s technologies (ML, AI, Data Science, etc.) the prediction is getting very precise, especially if the software is custom developed.

Why Retirement Management Software Is Vital for Insurance Industry

To reach customers and become a trusted partner for life, insurance companies should seriously consider including retirement options in the insurance package for businesses and individuals. The right insurance software could protect customers’ income in retirement, keep savings on track and improve investments. In addition, life insurance options offer tax-deferred growth and tax-free cash flow due to preferential tax treatment.

What Aspects Insurance Companies Should Pay Attention To?

Interdependent Retirement Risks

Insurance companies should be selective in the retirement planning software they recommend. The top priority should be given to solutions with multiple retirement risks examined, especially the ones that are interdependent. Such programs are good because they frame the analysis in terms of insurable events.

Consultancy from Financial Advisors

The retirement app should include a wealth of information about inflation rates, market trends, health care costs, etc. Ideally, each insurance company should engage financial advisors or at least offer one or two free consultations to recommend the right plan that addresses the client’s specific needs. It is also advisable to work with financial advisors who specialize in different aspects of retirement planning: annuities, investment plans, analysis, simulations, Monte Carlo predictions, etc.

Pre-retirement and Post-retirement Planning Tools

When developing custom retirement analysis software, insurance companies should consider the difference between pre-retirement and post-retirement planning tools. Pre-retirement planning is generally based on developing a savings strategy and using appropriate asset allocation and investments over a known period of time. Post-retirement practices have to address a complex set of risks over an unknown period of time.

Core of the Best Retirement Finance Planning App

To order a sound and resilient retirement planning software that will automate customer service, ensure superior customer experience, and bring better revenue to your company in the long run, consider the following.

Spending Analysis Tools

The integration of spending analysis tools stems from the fact that, unlike revenues, expenditures are not predetermined. They should be adjusted within certain limits, the solution might advise cutting travel or entertainment expenses, etc. To ensure the success of retirement planning, spending habits could be visualized and interacted based on the user’s actual expenses to create new spending habits in the shortest possible time.

Robotic Advisory Tools

Based on the personal data provided the robotic retirement planning calculators come up with the exact time when one’s funds might run out. By using sophisticated algorithms and machine learning, the path to different scenarios is cleared and provides clients with sound advice for better funds management. The most common are ‘What-If’ scenarios, Monte Carlo simulations, or a linear model based on either goals or cash flow. It is important to provide 401(k), IRA limits, and regular tax law updates to keep the program up to date and extremely helpful.

Multiple Financial Goals Support

This feature is important to avoid overestimating the amount that can be saved for a comfortable retirement, thus giving clients an incomplete picture. There should be other goals you want to save for besides retirement: college, buying a new car, moving to a new house, etc.

Security and Protection

Most retirement software used today is web-based, but with the rise of smartphones, it can also run as an app. Since phones are vulnerable to phishing and hacking, all financial solutions should be protected. This could be two-factor authentication, encryption, and other security protocols.

Intuitive Design

There is no doubt that customer loyalty and retention depend on how user-friendly and useful the app is. This point is extremely important in retirement calculators, as the software is quite complicated by nature. The built-in guidance and structure of retirement apps are more beneficial for customers than introducing complicated schemes and in-depth financial planning algorithms that can only be interpreted by a professional.

Summary

There are plenty of retirement management solutions available to meet the different needs of end-users and help them prepare for a comfortable retirement. There is the option of using free and paid apps for individuals or purchasing a complete package from an insurance or financial company. But the question of accuracy is still up in the air. For insurance companies and financial advisory agencies, it is best to order custom development and ensure that all aspects and key features described in this article are applied. Make your retirement planning software highly interactive, user-friendly, secure for entering sensitive data, helpful for comparing multiple scenarios, mapping stress tests, and creating the savings plan. It should also be easy to update and make changes to the existing retirement plan.

Itexus can point to a number of successfully developed financial apps that integrate machine learning, AI, data science, and other cutting-edge technologies. If you have an idea of what kind of financial software you would like to develop, or if you already have an app that needs an upgrade, contact us.

To recap

We’ve compiled an infographic to make it easier for you to remember all the important parts of the article, in a visual form.

The post Retirement Planning Software Development: Essentials first appeared on Itexus.

Insurance agency management systems (AMS) are ad hoc means of facilitation and automation of routine processes without compromising quality. AMS is the software used by insurance agencies to handle their specific niche needs and organize business processes more efficiently. AMS usually integrates both client management software for insurance agents (known as CRM – Customer Relationship Management), and ERP (Enterprise Resource Planning) functions, thus covering both internal and external digital interactions.

Digitalization as a global trend enforces businesses to adapt if they want to compete effectively, so there are already lots of insurance agency software solutions. And the insurance software market continues to grow – according to some estimates, its year-over-year growth is predicted at 5.85%.

But when it comes to such a demanding industry where customer experience is a crucial element of the agency’s overall success, there is no one-size-fits-all solution. Particular needs and requirements established by a specific niche in the insurance market and regional disparities necessitate the insurance software solutions development. This article will guide you through all the pros and cons of developing such a system and help clarify what key features you should take into account to get the best results.

Why Build an Insurance Agency Management Software? 

Insurance companies turn to the development of insurance agency management software with the following major objectives: to streamline processes, reduce bureaucracy, cut costs, and improve both employee and customer experience. The key benefit is that the system is specially built for a particular company and designed to meet its needs and requirements. Let’s consider each point.

Streamlined Processes

Operation in the insurance sector implies a rapid pace and large workflow. Agency management software is a perfect way to streamline and facilitate routine processes and reduce the departments’ overload where the staff has to work in permanent tension and stay alert to every detail. 

Time and Cost Reductions

One well-designed insurance client management software tool can replace a whole bunch of narrowly targeted products providing employees with a flexible and easy-to-use system to effectively manage their client base and documents. It also cuts expenditures through process automation that reduces manual work by up to 80%.

Improved Customer Experience

A crucial distinction of the insurance sector is the low frequency of customer requests such as in the case of life insurance. It means that data that hasn’t been used for a while can get lost. Specialized software enables an agency to build a whole ecosystem of insurance services and products improving the customer experience in every direction – from bringing and storing all relevant documents and data in a personal account to accessing all agency services at the customer’s fingertips.

High Performance

A cloud-based management system is capable of serving several thousand users working simultaneously and providing online support to both employees at the head office and in remote branch offices.

The National Association of Professional Organizations research showed that an average employee wastes 4.3 hours per week searching for papers. Specialized software addresses the biggest challenge of all businesses helping to save time instead of spending it on paper clutter.

Independent Insurance Agents & Brokers of America reports that 44% of agencies noticed an increase in their productivity after implementing management systems.

Security Management

Capacities of the staff are limited, and there is an increasing possibility of human error which is the reason 90% of data breaches occur. AMS alleviates the workload on employees and reduces the risk of data leaks caused by human error. If you collect and store sensitive data such as in the case of health insurance you should provide your customers with the ultimate security of their information. Developing custom health insurance agency management software with enhanced data security can become a competitive advantage if your clients know that their data is protected properly.

Custom vs Out-Of-The-Box Insurance Management Solutions 

Any successful business is backed up by solid customer relationships achieved with excellent customer experience. To free up time for improving this experience instead of managing multiple separate programs and tools, companies use agency management systems. There are two options – to buy an out-of-the-box software solution or to develop a custom system. Let’s compare each option so you can decide which one is better to achieve your goal.

Custom Insurance Agency Management System

Sometimes building a custom management system from scratch turns out to be a more informed decision than choosing, installing, and setting up an existing system and training staff in the use of this software. So, if you consider developing a custom AMS, weigh up the pros and cons.

Advantages:

• Perfect fit – developing a custom AMS implies that it will work exactly in the way you need taking into account all the specifics of your company and industry.
• Efficient resource allocation – you don’t have to pay for features you don’t need as if you were using an out-of-the-box solution – you choose the features to develop on your own.
• Flexibility and prompt improvements – when you need to arm your AMS with certain features, you can do it timely without waiting for the supplier to come up with it.
• Independence and complete control – your custom AMS will work when and how you want regardless of third-party vendors.
• Scalability – it is easier and cheaper to scale a custom AMS than to pay for additional licenses to use ready-made management software.
• Competitive edge – ready-made solutions usually provide the same set of tools for different industries, but a well-designed custom solution can equip you with specific tools and features your competitors don’t have.
• Pay-as-you-go, not in advance. Buying a ready-made solution isn’t as profitable, and developing custom software isn’t as costly as it may seem. The first case implies one-time paying a tidy sum for a license to use the supplier’s software and subsequent regular charges. In case you decide to develop an AMS from scratch, the cost can vary depending on the system’s complexity and labor intensity. Anyway, you don’t pay all in one go – the amount is divided into several parts that you pay during the development process.

Disadvantages:

• Support and maintenance cost – custom AMS implies forming and paying your own support department. Yet if you look at this point from a different angle, it can turn out to be an advantage since your software is always up-to-date, and technical support specialists are always at your fingertips.
• In case of a limited budget, buying and customizing a ready-made tool is a more fitting solution because developing some specific features can be technically challenging which poses additional costs.

Out-Of-The-Box Solution

Many vendors are providing ready-made agency management systems for enterprises of all sizes. A good AMS won’t be free, so usually suppliers offer different subscription models.

Advantages:

• It is easy to install and use.
• Top solutions are equipped with must-have features.
• There is a supportive community of the solution’s adherents who often contribute to the improvement of the product. But you’ll need to spend time to be well versed in it.
• It is inexpensive in the short term – the price of a monthly or even annual subscription can be significantly lower than the cost of developing a custom system.

Disadvantages:

• Existing solutions with large auditory are often unwieldy systems and can’t keep pace with rapidly changing market trends and needs. At the same time, small insurance agency management systems are often ill-equipped.
• Ready-made AMS is often inflexible because it is built for an average company and even for different industries without taking into account the requirements of a specific niche.
• It is expensive in the long run. Or if you’d like to scale, because you’ll have to pay additional fees for it.
• Your business depends on the software provider who can change the conditions or stop providing its services at all at any moment which is unacceptable if you are using life insurance agency management software. Or they can stop updating it which will cause essential security threats.

Now you know all the pros and cons and can decide if an out-of-the-box management solution is as good for you as it seemed at first glance, or if your insurance agency needs to develop a custom management system.

Key Features to Consider in Your Agency Management System

If you are inclined to favor a custom management system development, check out this list of the key features you’ll need regardless of business specifications:

1. Organized data and documents storage

A single database enables an agency to store insurance information, track and timely update customers’ insurance statuses, make personalized offers, and much more. It benefits the customers as well since they can keep records of all their insurance and documents in a personal account.

2. Streamlined policies management

A custom AMS automates all the interactions between an agency and its customers. For example, it enables clients to manage their insurance online, facilitates KYC procedures, and allows remote signing of documents without losing its legal validity through the possibility to integrate third-party services and providers.

3. Real-time analytics dashboard

Customized data collection, analysis, and report systems enable an agency to make data-driven decisions and address the challenges even before they are ripe.

4. Automated policies management

It allows tracking and managing claims, collecting documents, and insurance benefits. In 2013, processing insurance claims cost approx $210 billion a year in the United States, and this sum increases continuously. AMS enables agencies to redirect this money to something more substantial.

5. Communication automation – both internal and external

Using specialized tools reduces coordination time and improves performance. As for client communication management, its quality deeply affects CX and customers’ satisfaction, and AMS addresses it effectively helping to create and curate a consistent customer experience.

These are the key features of a custom management system that’ll enhance and speed up the work of an insurance agency as well as cut costs, reduce department overload, and improve customer experience.

Summing It Up

As we already mentioned, global digitalization enforces businesses to follow the trend and arm themselves with specific software tools to compete effectively. The insurance software sector which is predicted to grow by $5.19 billion during 2020-2024 also accepts these rules. Developing an insurance agency management solution now is more of a pattern than an exception – at least for those companies who have big plans since they recognize the real value of insurance agency management systems cost and consider it as an investment.

Yet this process begins long before the development itself – it starts with an idea, research, and identification of the key features for each specific agency. If you want to come up with a coherent and comprehensive list of features and develop a custom insurance agency management system that will meet all your requirements, let the professional insurance software development company handle it. Fill in the contact form to discuss how you can achieve your business goals with our help.

The post Insurance Agency Management System Development: Things To Consider first appeared on Itexus.