en flag +1 214 306 68 37

Insurance Automation

A Comprehensive Guide

ScienceSoft applies 11 years of experience in insurance software development and 34-year expertise in digital transformation to help insurance companies automate their business processes.

Insurance Automation Guide - ScienceSoft
Insurance Automation Guide - ScienceSoft

The Essence of Insurance Automation

Insurance automation aims to eliminate manual workflows across underwriting, billing, claim processing, policy updating, and other insurance-related processes.

Automated insurance systems rely on advanced techs (cloud, AI, big data, blockchain, etc.) to help insurers make their business operations more efficient and ensure the company’s sustainable growth.

  • Key integrations: a CRM, payment gateways, accounting software, a BI solution, etc.
  • Implementation time: 10–18+ months for a custom insurance automation system.
  • Development costs: $200,000–$4,000,000+, depending on the automation scope and complexity. Use our free calculator to understand the cost for your case.
  • A payback period: 6–12 months on average.

Main Use Cases of Insurance Automation

Underwriting

Automate up to 80% of tasks and enjoy a 2–5x faster cycle with >99% accuracy of underwriting operations.

Policy management

Drive >50% increase in the productivity of your insurance team and benefit from 3x faster policy creation, updating, and renewal.

Billing

Eliminate ~90% of manual tasks and decrease costs by up to 80% while getting a 2–3x faster billing process.

Claim management

Employ cognitive techs to accept, verify, process securely and error-free, and settle claims in minutes rather than days.

Regulatory compliance

Be 100% sure of your compliance with all insurance-specific legal requirements and data protection standards with real-time compliance checks and automated compliance reporting.

Customer support

Rely on intelligent virtual assistants to process >50% of omnichannel customer inquiries and improve the SLA performance for key metrics by >20%.

Key Features of an Insurance Automation System

ScienceSoft creates automated insurance systems with functionality bound to each customer’s unique needs. Below, we share a comprehensive list of the features commonly requested by our clients:

Customer onboarding and pre-qualification

  • Configurable self-registration forms for individual and corporate customers.
  • Automated capture and validation of customer personal and business information using OCR, RPA, and AI technologies.
  • Geography-based KYC/AML verification for customers.
  • Automated customer pre-qualification against the pre-set internal requirements: age, location, income sustainability, owned asset value, etc.
  • Data-driven customer segmentation by user-defined criteria: age, gender, lifestyle (for individuals), industry, location (for businesses), and more.
Read all
  • Automated processing of insurance applications.
  • AI-based assessment of customer risks based on the analysis of:
    • Data provided by customers.
    • Data available from third-party sources.
    • The customer’s past insurance coverage and claims history, if any.
  • User-defined rules for the insurance premium and coverage segmentation based on:
    • The type of insurance policy.
    • Customer creditworthiness, health risks, location, claim history, and more.
  • AI-supported recommendations on optimal premium amounts and insurance limits for particular customers and customer segments.
Read all
  • Customizable templates for various types of insurance policies: life insurance, health insurance, property and casualty insurance, etc.
  • Automated policy generation and submission to customers (via email, messaging apps, or a customer portal).
  • Automated policy update (customer data, coverage and premium terms).
  • Rule-based policy renewal.
  • Instant communication of policy updates to the policyholders.
Read all
  • Template-based creation of customer invoices, including multi-currency and multi-language ones.
  • Calculating a customer-specific premium and applying it to the invoice.
  • Signing invoices using an e-signature.
  • Support of multiple payment methods, including bank transfers, credit cards, checks, etc.
  • Automated payment processing via the connected payment gateways.
  • Real-time invoice tracking by status (sent, paid, due, etc.).
Read all
  • Automated aggregation and processing of claims from a customer portal, emails, phone calls, etc.
  • AI-based validation of claim-supporting documents: medical images and reports, accident reports, photos or videos of damaged property, etc.
  • Automated identification of fraudulent insurance claims.
  • AI-powered damage estimation and claims triage.
  • Automated assignment of claim management tasks based on employees’ qualification, availability, location, etc.
  • User-defined rules for claim approval or rejection.
  • Calculating the due claim payment amount.
  • Instantly communicating claim-related decisions to customers.
  • Automated payment of approved claims.
Read all

Analytics and reporting

  • Calculating and monitoring the essential metrics: underwriting, claim management, financial performance, workforce, etc.
  • Configurable analytical dashboards for various user roles: sales agents, underwriting specialists, claim managers, financial analysts, etc.
  • Automated generation of insurance reports.
  • Scheduled and ad hoc report submission to the required legal regulators.
  • Predictive analytics to forecast insurance demand, revenue and expenses.
  • AI-powered analysis of customer behavior.
Read all

Customer self-service portal

  • Customer self-registration, managing and updating personal or business information.
  • Template-based creation of insurance applications.
  • Paying premium by a preferred payment method.
  • Filing and submitting claims.
  • Notifications to customers about the application and claim status changes, expiring documents, etc.
  • Instant messaging.
  • AI-powered virtual assistant to help customers solve operational, technical, and security issues.
  • (optional) A self-service insurance price calculator.
Read all

Security and compliance

  • Compliance with KYC/AML and OFAC requirements, IFRS17, CCPA, CPRA, GLBA, SOC1 and SOC2, SAMA requirements (for the KSA), MCEV principles and GDPR (for the EU), NYDFS (for New York), HIPAA (for health insurance), other relevant global, local, and industry-specific regulations.
  • Real-time compliance monitoring.
  • Scheduled compliance reports.
  • End-to-end audit trail of insurance activities.
  • Permission-based access control.
  • Multi-factor authentication.
  • Insurance data encryption.
  • (optional) Insurance data hashing, timestamping, and recording in the immutable blockchain ledger.
Read all

Benefit from End-to-End Insurance Automation

ScienceSoft is ready to design and build an effective automated insurance system to free up your team for high-value tasks and drive significant time and cost savings across insurance processes.

Important Integrations for an Automated Insurance System

Connecting the insurance solution with relevant internal and third-party systems helps drastically improve the efficiency of insurance operations. ScienceSoft recommends establishing the following key integrations:

Integrations for an Automated Insurance System - ScienceSoft

CRM

  • For calculating the expected demand and data-driven planning of distribution and marketing activities.
  • For informing the insurance teams about the planned promotions of particular insurance products.

For instant processing and real-time tracking of premium payments.

For automated recording of insurance-related financial transactions in the general ledger.

For comprehensive insurance analytics and advanced visualization and intuitive reports.

Third-party data sources

For accurate risk assessment, insurance pricing, claim validation, and damage estimation.

Show more

  • Internal systems of the local credit rating bureaus, medical information bureaus, department of motor vehicles, etc.
  • IoT ecosystems of commercial customers, smart utility companies, telematics providers, connected-health providers, etc.

hide

Communication channels

For fast and convenient customer interaction.

Show more

Mail services, messaging services, VoIP systems, etc.

hide

Success Factors for Insurance Automation

ScienceSoft’s experience shows that an ROI for the insurance automation system can be achieved in 6–12 months on average. To maximize the solution’s value for the client’s internal processes and drive faster payback from insurance automation, we always cover the following important factors:

End-to-end automation

To eliminate manual workflows across the entire insurance cycle, from underwriting, through claim processing, to policy renewal.

AI-powered analytics

To get data-driven risk assessment and optimal, risk-based insurance pricing, promptly identify insurance fraud, and more.

Regulatory compliance

To process insurance-related data in accordance with up-to-date legal requirements.

Proper user training

To help insurance teams quickly learn how to apply automation to streamline their daily tasks.

Explore ScienceSoft’s Featured Success Stories

Insurance Automation Costs

The costs and timelines of implementing custom insurance automation solution vary greatly depending on:

  • The number and specifics of insurance processes (e.g., underwriting, billing, claim management, etc.) to automate.
  • Functional complexity of the automation system, including the implementation of features powered with advanced techs (e.g., blockchain for insurance).
  • Performance, availability, scalability, security, compliance requirements.
  • The scope and complexity of integrations.
  • The number of user roles.
  • The sourcing model (full outsourcing, team augmentation, or all in-house) and team composition.
Pricing Information

From ScienceSoft’s experience, an insurance automation project for an upper-midsize company may cost around $200,000–$1,500,000. Large enterprises with complex insurance processes should expect to invest $1,000,000–4,000,000+.

Want to know the cost of your insurance automation solution?

Get a cost estimate

Financial Outcomes of Insurance Automation

  • <1 year

    to achieve full payoff of investments in automation

  • Up to 50% increase

    in the overall business efficiency and profitability

  • 30–40% decrease

    in operational costs, including labor and IT infrastructure costs

  • Minimized risk

    of financial losses associated with non-compliance and insurance fraud

When a Custom Insurance Automation Solution is Your Best Choice

ScienceSoft’s experience shows that a custom automated insurance system can drive a significant ROI for the range of insurance companies with particular business needs:

Companies that need to automate complex or unique insurance operations.

Companies that want to get intelligent guidance on specific insurance-related decisions.

Companies that operate in multiple countries and need to comply with numerous local insurance regulations.

Companies that want smooth and cost-effective integration of insurance automation software with their legacy corporate tools.

Companies with large insurance teams that want to avoid a considerable subscription fee for off-the-shelf insurance tools, which scales as the number of users grows.

Companies that need advanced data security.

Companies that want to leverage smart contracts for insurance automation.

Companies that start their digital insurance journey and want to build their business software ecosystem around a comprehensive insurance automation system.

Insurance Automation with ScienceSoft

In insurance software development since 2012, ScienceSoft provides a full scope of required services to help insurance companies plan and introduce robust business process automation.

Depending on your needs, we can build your insurance automation system from scratch or based on a low-code platform (e.g., Microsoft Power Apps). Although the latter option offers less flexibility in terms of UX and UI design, it proved to bring 70%+ reduction in development costs.

Insurance automation consulting

We design an insurance automation strategy tailored to your unique needs and accurately plan its implementation. You get optimal features, architecture, and tech stack for your insurance automation system.

Go for consulting

Implementation of insurance automation

We plan and develop a new insurance automation solution or upgrade your existing insurance tool. You benefit from smooth software integration with all the required systems. You also get user training in a preferred format.

Go for implementation

About ScienceSoft

ScienceSoft is a global IT consulting and software development company headquartered in McKinney, Texas. Since 2012, we design and build robust solutions to help insurance companies automate their business processes. Being ISO 9001- and ISO 27001-certified, we apply a mature quality management system and guarantee that cooperation with us does not pose any risks to our customers’ data security.