8 Trends in Insurance Software Development for 2022

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Insurance makes people’s lives easier as we have fewer things to worry about. It plays an important role not only in our lives but also in business. 

Insurance companies are interested in simplifying bureaucratic processes. Hence, they want to leverage digital technologies and software solutions.

According to the Global InsurTech Market report by Research and Markets, the InsurTech market size is projected to reach $33.73 billion from 2021-2025 with a CAGR growth of 45,28% during the forecast period. 

In this article, you will learn more about the latest insurtech trends that are going to shape the market in the next few years.

Top trends in insurance software development 

Here are the tendencies and tech advancements that will shape the insurance industry in 2022 and beyond. Pay attention to them if you plan insurance mobile app development or build an insurance website in the near future. These trends of the modern insurance industry will make a secure and more effective environment for interactions between agencies and their clients. 

1. AI Integration

While many are just getting started using AI for business, some have already leveraged the capabilities of this technology. Artificial Intelligence shortens the distance between the insurance business and customers with more predictive and natural processes. 

Powered by Artificial Intelligence, human-like chatbots have become an essential part of customer support. Users don’t want to read FAQ sections on websites, and support teams answer the same questions every day. Chatbots have proven to be the best option to handle this constant questioning in the last few years. They encourage potential clients to ask questions and answer them right away. 

2. Machine Learning

ML is a powerful tool for handling challenging situations and providing a better customer experience. Potential use cases for ML include:

  • damage assessments
  • prediction of repair expenses
  • fraud detection
  • loss prevention
  • better use of underwriters’ time

Combined with Big Data, multiple connected devices, and cloud storage, it significantly speeds up complex processes. 

3. Big Data and Cloud Storages

These are also important technologies considering the growing demand for digital interactions. Big data helps companies use vast amounts of information to draw new clients and improve relationships with the existing ones. Investments in Big Data solutions will enhance data integrations and management for the insurance business. 

Storing data in the cloud speeds up the process of finding necessary documents. The shift to cloud technologies also helps save place in the office. It is a convenient, accessible, and safe solution for the insurance industry in 2022 and beyond. 

4. Blockchain

Creating secure storage for information is one of the biggest blockchain advantages for insurance companies. Customers who use insurance services are going to expose sensitive data. They want to be sure their information is stored in a safe place. With blockchain, you can kill two birds with one stone. It protects the data and prevents it from being modified, added, or removed. 

On top of that, blockchain adoption is rising. According to GlobeNewswire, the global Blockchain market size is projected to grow from $4.9 billion in 2021 to $67.4 billion in 2026.

It is a safe, reliable, and speedy enabler for automating processes, offering microinsurance products, and operating a decentralized organization. Services provided via blockchain solutions add value to the business by increasing revenue, enhancing customer experience, and providing the opportunity to offer new cost-efficient products.

6. Mobile apps

Beyond any doubt, mobile apps are essential for any type of business. The insurance sector isn’t an exception. Mobile apps play an intermediary role in interactions with customers and help increase customer reach since global mobile app usage in 2020 reached 230 billion. Here are the use cases for mobile apps:

  • finding more information about the company and services offered
  • learning more and choosing the most relevant insurance plans
  • purchasing an insurance package online without a physical presence in the office
  • calculating insurance policy cost
  • immediate contacting an insurance agent or broker

While discussing trends for software development, insurance apps bring benefits for both parties — customers and brokers. They can work with documents more conveniently and write reports right away. 

7. Internet of Things

The growing adoption of cloud storage also accelerates the popularity of IoT in the insurance sector. The less human involvement when using apps, the speedier and more seamless the processes will be. 

Automation is one of the most impactful insurance software trends. It helps collect more insightful data about customers and covers multiple spheres of human life. With IoT, insurance companies can make more personalized offers based on customer behavior and meet their needs perfectly. For instance, you can offer more relevant insurance policies. 

8. Cybersecurity

Cybersecurity is taking shape right now. The faster the development of new technologies, the more popular this aspect gets. Insurance businesses work with too much sensitive user information like credit cards, addresses, assets, etc. The vast databases and systems are connected to numerous devices. If a data breach occurs, the whole system may be under threat. That’s why cybersecurity is critical for insurance software solutions. The clients entrust insurance companies their private data, so they want to be confident that everything is protected. 

Summing up the modern insurance software trends

Increased efficiency of services provided benefits both insurance companies by optimizing their resources and clients by more customized experience. Software solutions for the insurance industry are changing the market and helping businesses gain a competitive advantage. They also help eliminate threats related to cybersecurity and confidentiality. 

The predictions related to insurance industry software trends are inspiring. It’s an excellent time to leverage the power of modern technologies.