Exploring Insurance Mobile App Development: From Vision To Reality

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Insurance Mobile App Development_ From Vision To Reality

Getting an insurance policy no longer requires a lengthy process and physical visits to the office. Through an insurance mobile application, you can access everything at your fingertips. Insurance businesses are embracing mobile technologies in the fast-paced digital world to improve customer connections, drive growth, and simplify operations as part of the digital transformation.

As a result, the global InsurTech revenue is projected to reach $10.14 billion by 2025, up from $5.48 billion in 2019.

Insurance mobile app development facilitates real-time and direct B2C interaction between insurance agents and consumers. It is revolutionizing the way businesses engage with their customers by allowing them to manage their policies and submit claims easily and conveniently. 

If you want to explore insurance app development and its benefits, this blog will help you grasp the insurance market’s needs. Also, get a better understanding of how to build an insurance mobile application that can scale your business, the features of an insurance app, and the cost of developing an insurance mobile app. Before that, let’s first understand why you should invest in insurance application development. 

Why Build an Insurance Mobile Application?

As reported by Insurance Journal, only 18 out of 100 insurance companies offer mobile apps that can be considered average to good. In 51% of the top 100 companies, there is no mobile application at all. There is a significant opportunity for established players as well as startups to take advantage of this and stand out in the marketplace. 

It is becoming increasingly important to provide exceptional mobile insurance services. If businesses fail to do so, customers could migrate to more tech-savvy companies. As a result, businesses are strategically utilizing smartphone capabilities to meet the needs of their customers, who are increasingly reliant on smartphones.

The second reason to build an insurance mobile application is the increasing market growth in the insurance industry. Let’s take a closer look at the InsurTech market. 

Insurtech Market Analysis

According to Mordor Intelligence, Insurtech Market size will reach USD 32.47 billion by 2029, growing at a CAGR of 30.34% over the forecast period (2024-2029). 

insurtech market analysis
Source: Mordor Intelligence

Insurance technology has recently seen a notably rapid expansion. Throughout the forecast period, the InsurTech market is expected to grow due to improvements in claims processing, enhanced customer communication, and automation. 

With the increased use of data analytics and the need for digital solutions, customers today are demanding smooth, easy-to-use insurance experiences, which continues the growth of insurance app development. 

Compared to other segments of the insurance industry, the health insurance sector is poised to experience the most substantial growth in the coming years. Recent years have seen a steady rise in transaction volumes within the insurance sector, fueled by advances in technology like artificial intelligence, machine learning, and blockchain in insurance. 

The benefits of purchasing insurance policies online also include better technology support, faster service, more information, and a smoother process. Thus, banks and insurance companies invest in cutting-edge technology to improve customer service. This creates opportunities for insurance technology providers for insurance mobile app development.

Benefits of Insurance Mobile App Development

1. Nowadays, self-service digital channels and remote communication are more convenient for customers. Insurance customers don’t need to go to the agency and fill out paperwork since they can get personalized policies and 24/7 customer service from home. 

2. Insurance app development simplifies the claim submission process. Users upload the necessary documents and photos directly through the app and can check the status of their claim process in real-time. 

3. Insurance apps help insurance companies and customers communicate more efficiently.

4. By automating basic insurance tasks, agents and brokers can focus on more complex challenges.

5. The use of AI and machine learning allows insurance apps to process large amounts of data more quickly. Due to the increased use of AI in healthcare and other industries, insurance agents have better access to data. 

6. You can tailor offers and services to your customers by gathering detailed information about them through apps.

7. An insurance mobile application allows insurance companies to gain a foothold in a dynamic market beyond standard insurance policies. According to BusinessWire, the global insurtech market is expected to grow at a CAGR of 10.80%, from 5.48 billion in 2019 to 10.14 billion in 2025. Traditional insurance businesses should enter this market if they wish to grow in the future and get an edge over their competitors.

8. Apps allow customers to provide feedback, which offers a great window into their pain points that is impossible for standard insurance businesses to obtain.

9. It’s easier for insurance agents to work efficiently when they have mobile apps. Apps allow them to track workflows, communicate with clients, and access all necessary information.

10. If your business has insurance apps, you can advertise them on other mobile applications. Apps generally attract more clients. A well-designed app increases customer interaction, which results in increased loyalty.

Challenges of Insurance App Development

There is no doubt that an insurance application development simplifies the user’s association with an insurance company. Many interactions on insurance require human expertise, which is why insurance apps have limitations. All of these limitations can be removed with access to human expertise, and none of them are critical. Among them are:

  • Apps cannot automatically handle various complex claims, such as litigation, opioid use, and comorbidities. Brokers should handle this type of claim. The same applies to providing personalized advice and resolving disputes.
  • Despite their convenience, apps may not always offer the depth of information or understanding that a face-to-face meeting or detailed conversation with an agent can provide, especially for clients with minimal insurance knowledge.
  • Those with limited technology access or who are not tech-savvy may have difficulty using these apps effectively. Technical issues or limitations, such as system failures, may also hinder their use. 

Types of Insurance Apps Across Various Business Verticals

Insurer apps can be developed depending on the niche in which your company operates. Generally, six types of insurance apps have been developed in the Insurtech domain, each based on the financial aspects you need to protect. 

Types of Insurance Apps
  • Life Insurance App 
  • Health Insurance App
  • Vehicle Insurance App
  • Property Insurance App
  • Travel Insurance App
  • Business Insurance App

Here are the specific features and benefits of each type of insurance app.

1. Life Insurance App

An app for life insurance helps users manage their policies, such as selecting insurance policies, making payments, and calculating coverage. You can review policy terms, apply online, receive instant renewal notifications, and contact customer support at any time.

2. Health Insurance App

Apps for health insurance simplify healthcare management by enabling users to find suitable plans, review policy details, and manage claims. Among the features are secure data sharing, premium payments, instant notifications about policy changes, and tools to track claims and benefits. 

3. Vehicle Insurance App

A vehicle insurance app facilitates auto insurance management by providing options for selecting policies, submitting documentation, and calculating premiums. It allows users to review policy terms, pay premiums through a dedicated gateway, track claims, and receive renewal notifications. 

4. Property Insurance App

Users can manage their property insurance policies with property insurance apps, which offer features such as policy selection, documentation, and premium payment. You can review the terms, get renewal and update notifications, calculate coverage limits, and access emergency services. 

5. Travel Insurance App

Users can select and pay for travel insurance policies through travel insurance apps, which offer features such as policy selection, online documentation, and premium payments. Users can review policy terms, get notifications for travel advisories, calculate coverage costs, and file claims. 

6. Business Insurance App

Apps for business insurance streamline policy management, including coverage selection, premium payments, and risk management tools. Users can view terms, share data securely, receive notifications about renewals and claims, and calculate coverage requirements. 

Types of Insurance Apps You Can Build: Agent vs. Customer

From the user’s perspective, there are two kinds of insurance mobile applications. You can either create an app for agents or develop one for customers. Both types serve distinct purposes and cater to different user needs, providing unique functionalities. Let’s have a look at both types of apps and their core functionalities. 

 A. Insurance Apps for Agents

An insurance agent app is a specialized app designed to enhance the productivity and efficiency of agents. Agents can use these applications to manage clients, administer policies, and more, enhancing their workflow. An example of an app for insurance agents is BAGIC Care. 

Insurance Apps for Agents

The following are some of the core features you may want to consider in your insurance mobile app development for the agent side:

Core Features of the Insurance Agent App: 

  • Client Management

Among the most important features of the agent-side app is the client management dashboard, which provides agents with detailed information about clients, such as their contact information, policy details, and communication history.

  •  Policy Management

Another significant feature is where agents can manage and track policies, update policy details, and view policy portfolios.

  •  Quote Generation

Basically, this feature saves time by eliminating the need to manually create quotes. Agents can generate quotes based on potential clients’ specific needs and preferences using this feature.

  •  Document Management

Keeping bundles of papers physically is a tiresome process, and there is a chance of losing important documents. By using this feature, agents will be able to store, retrieve, and share documents securely within the app quickly and easily.

  • Commission Tracking

Another feature of the agent-side app is the ability to track commissions earned from policy sales and renewals.

  •  CRM Integration

Many insurance apps offer CRM integration functionality. This feature helps agents seamlessly integrate with Customer Relationship Management systems to enhance client interaction and follow-up processes.

| Case Study : Custom CRM Development for Local Service Businesses

 B. Insurance Apps for Customers

The purpose of customer-facing insurance apps is to simplify and enhance the user experience for policyholders. These apps make it convenient to manage insurance policies because they provide easy access to insurance information, such as policy documents, premium due reminders, and claim tracking. An example of an insurance app for customers is GEICO Mobile.

Insurance Apps for Customers

Typical Features of an Insurance App for Customers:

  •  Policy Overview

It is a fundamental and most important feature for customers to be able to view details of active policies, such as coverage, premiums, and expiration dates.

  • Claims Management

Your app can also feature a step-by-step guide and real-time updates for filing and tracking insurance claims.

  • Payment Processing

By integrating a payment processing feature in your insurance app development, customers can easily make premium payments and view payment histories through secure payment gateways without contacting their agents. 

  • Customer Support

Your app can also provide customer support without the hassle of managing human resources. This feature allows customers to easily access support services, FAQs, and contact information for quick assistance.

  • Quote Requests

The Quote Request feature allows users to obtain quotes directly from the app for new policies or additional coverage. 

  • Notifications

The feature cannot be ignored since users can receive alerts and reminders regarding policy renewals, payment deadlines, and claim status updates. Notifications keep users engaged with your app and encourage them to come back. 

If you’re contemplating building an insurance app, opting for mobile app services can keep you ahead in the competition. 

What Features to Add to Your Insurance App cta

Example of Insurance Mobile App Development

Insurance companies are increasingly creating user-friendly apps that allow policyholders to conveniently access information and manage their coverage on the go. Here are a few examples of popular insurance apps across different categories:

1. Aetna Mobile App (Health Insurance)

Aetna’s mobile app offers a comprehensive suite of health insurance features. It allows you to view your plan details, ID card, and explanation of benefits (EOB). It also allows users to find in-network providers, estimate their costs, and schedule appointments directly within the app. Additionally, the app offers tools to track your health and wellness goals, such as fitness trackers and medication reminders.

2. Progressive App (Car Insurance)

A good example of an insurance app is the Progressive app, which simplifies car insurance management. You can access your policy details, make payments, and report claims directly through the app. It also offers features like roadside assistance, accident scene documentation tools, and real-time weather alerts. Progressive’s app goes a step further by allowing users to track their driving habits and potentially qualify for discounts based on safe driving behavior (telematics).

3. Lemonade (Homeowners Insurance)

Lemonade is a relatively new player in the insurance market, known for its innovative approach and focus on technology. Their mobile app is a core component of their service. Users can manage their homeowners’ insurance policy entirely through the app, from purchasing a policy to filing claims. The app also boasts features like real-time weather monitoring for potential risks and proactive claim assistance powered by AI.

Process of Insurance Application Development

If you are considering developing an insurance mobile app, you will need the help of a mobile app development company. Listed below are the steps involved in developing an insurance mobile app.

Process of Insurance Application Development

01. Strategy and Planning

The app development process begins with meticulous planning. The smart approach is to build a minimum viable product (MVP) to test market viability. This process involves the gradual evolution and rollout of a product over time. For an MVP of your insurance app, you can hire a mobile app development company

You can begin with market analysis, which involves researching your competitors, identifying key features, determining your target audience and their preferences, and finally, staying current on market trends. Developing an MVP will be easier if you plan ahead. 

02. UI/UX Design 

It is one of the crucial steps to understanding the app’s final look. Maintaining an eye on the latest mobile app design trends is crucial to improving the design process. After performing the UX research, it is always necessary to start by designing a prototype that helps adjust the flow of the end-users.

The prototype will guide the overall development process for the development team and app owners. At this stage, you can expect to receive wireframes, app screens, clickable working app designs, and the overall design document. The app development company will conduct a usability test and provide the client with UI mockups.

03. Development and Testing 

Once the UI/UX design phase is complete, it’s time to transform the design into a fully functional mobile app. As part of this process, backend and frontend developers collaborate to create the final product. 

To guarantee that the project is delivered on time, it is recommended that a project manager supervise the development process and establish milestones so that the developers are able to follow the strict guidelines provided by the project manager. In this way, all milestones will be met within the specified time frame, and the project will remain on track.

To identify any potential vulnerabilities in the endpoints and user interfaces, you can hire quality assurance engineers to run a series of tests after the front-end and back-end development processes have been completed. The tests guarantee that the app is secure and stable overall. 

04. Deployment and Maintenance 

After the app has been built, it is ready for the end-users and is deployed on Apple App Stores and Google Play Stores. Following the launch of the insurance app, ensure that you consider the end users’ feedback and make rapid improvements to your app. Once early adopters provide feedback, you can continue developing and improving the application. A user’s review can provide great ideas for improving the usability and appeal of your product.

Your main goal should be to increase the number of users because more feedback will improve the platform and insurance offerings. This will allow you to continuously improve the product based on customer feedback. 

Cost of Developing an Insurance App

The cost of developing an insurance app can cost from $30,000 to $4,00,000+. However, in order to accurately define insurance mobile app development cost for your project, you should consider the following factors. 

Factors Affecting the Cost of Insurance App Development:

Complexity of Features

When the app’s features are more complex (such as real-time data processing and AI insights), the development costs increase significantly.

Platform Choice

It will be more expensive to develop for both iOS and Android than to target only a single platform.

Development Team Location

The cost of developing an insurance app will vary based on the location of the development team, such as North America, Europe, Asia, etc. The cost of insurance app development in Asian countries like India can be low.

Customization and Design

When it comes to UI/UX design, highly customized designs may lead to increased costs when compared to standard templates.

Integration Requirements

As far as the overall cost is concerned, the requirement to integrate with multiple third-party services (such as CRM systems, and payment gateways) can also have an impact.

Here is a rough estimate of the cost based on the complexity of the app and the amount of time it takes to build an insurance app. 

App complexityPrice estimateTimeframe 
Simple app with basic features$28,000 to $40,0001 to 3 months 
Moderately complex app with limited advanced features$40,000 to $1,10,0003 months to 6 months 
Highly complex with advanced features $1,10,000 to $2,00,0006+ months 

| Bonus Read: App development cost

Build Your Insurance Mobile Application With OpenXcell

You must not compromise on the ROI of your insurance app development investment. Therefore, you should hire professionals with experience and expertise in mobile app development. 

OpenXcell has more than 15 years of experience developing web and mobile apps as well as driving high ROI. We help you avoid unnecessary expenses by defining the optimal functionality and technology stack for your app. We cover 100% of the app implementation process, from design and coding to integration and QA, and are ready to stay with you for continuous app support and evolution. Become a top-notch performer and get a sleek visual style for your insurance app by working with our experts. Contact us today! 

Final Thoughts 

Insurance mobile app development offers numerous advantages, as we have explored in this guide. You can benefit immensely from insurance app development, no matter if you’re an experienced insurance professional or a forward-thinking carrier. The insurance industry should embrace insurance mobile applications in 2024 to enhance operational efficiency and their market position. 

Based on your resources and goals, you can alter the scope of the projects according to the technologies you choose and the additional features you want to include. Transform your business into one that is more customer-centric and efficient by developing an insurance app.

Custom Insurance App Development cta

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Niha Parmanandani
AUTHOR

A dynamic content writer with a degree in Mass Communication and Journalism, she specializes in writing for web and social media.  It is her passion to play with words and keep up with technology trends. Her passion for reading drives her to create engaging, educational, and inspiring content.

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