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Custom Life Insurance Software
ScienceSoft applies 11 years of experience in insurance software development to build effective and secure life insurance systems.
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Life Insurance Software in a Nutshell
Life insurance software streamlines the entire life insurance cycle, from application processing and underwriting to policy issuance and claim payouts. Such systems can also cover loan management and investment management functions to facilitate operations with the policyholders’ funds.
Custom life insurance software enables carriers to automate specialized workflows of any complexity, including innovative ones like short-term life insurance and pay-as-you-live life insurance.
Often, insurers also go for custom systems to benefit from:
- AI-supported underwriting and claim processing.
- Advanced data protection and software compliance with the local standards.
- Easy software evolution to support sustainable business growth.
- Seamless integration with legacy tools or third-party systems.
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Key Features of Life Insurance Software
ScienceSoft creates life insurance solutions with unique capabilities tailored to our customers’ needs. We deliver software that safely automates various types of life insurance, including:
By policy duration
- Term life insurance: decreasing, convertible, and renewable term life insurance.
- Permanent life insurance: whole life insurance, indexed universal life (IUL) insurance, variable universal life (VUL) insurance, and burial insurance.
By the number of insured subjects
- Individual insurance, including key person insurance for businesses.
- Group insurance, including family member insurance and employee insurance.
Specialized rider types
- Disability income riders.
- Accidental death benefit riders.
- Waiver of premium riders.
- Accelerated death benefit riders.
- Long-term care riders.
- Guaranteed insurability riders.
Below, ScienceSoft’s experts share a comprehensive list of features that would form the core of a robust life insurance system:
Setting general life insurance terms
- User-defined life insurance terms:
- Coverage amount thresholds.
- (for term life insurance) Insurance duration and policy extension terms.
- (for UL insurance) A rate of return on the cash value component, funds withdrawal limits for cash value accounts.
- AI-based suggestions on optimal premium limits for various insurance products based on the analysis of demand, product profitability, claim costs, competitors’ prices, and more.
- (for PAYL insurance) Dynamic life insurance repricing enabled by IoT-based monitoring and analysis of a policyholder’s geographic location, activity, and health state.
Application intake
- Real-time capture and processing of omnichannel life insurance applications in various formats: digital images, XML, PDF, etc.
- OCR-enabled conversion of paper applications to the required digital format.
- AI-powered validation of customer data provided in insurance applications against the data available in third-party sources.
- Alerts on missing and mismatched data that requires a manual check.
- Customer pre-qualification against the internal requirements: min/max age, location, the absence of particular incurable diseases, etc.
- Geography-based KYC/AML verification for new customers.
- Automated routing of life insurance applications to underwriters based on underwriter location, qualification, availability, etc.
Underwriting
- AI-based customer risk scoring and human life value (HLV) calculation based on the analysis of customer age, gender, health state, lifestyle (occupational hazards, high-risk hobbies), driving record, claim history, family medical history, and more.
- Customer segmentation based on the risk score.
- User-defined rules for life insurance application approval or rejection.
- Intelligent suggestions on alternative life insurance products and coverage terms to propose to customers in case of the initial application decline.
- Instant communication of the application approval status to agents and customers via an insurance portal, email, or messaging apps.
Life insurance quotation and billing
- Template-based creation of multi-currency, multi-language life insurance quotes and individual payment schedules.
- Automated generation of one-time and recurring customer invoices.
- Instant processing of premium payments via connected payment gateways.
- Support for various payment methods: bank transfer, card, check, digital wallet, etc.
- Real-time tracking of received and due premium payments.
- Configurable notifications to customers about due payments.
Life insurance policy administration
- Template-based generation of life insurance policies, applying customer data, personalized coverage terms, premiums, beneficiaries, riders, etc.
- Multi-party policy e-signing.
- Automated policy delivery to customers.
- Rule-based policy updating, renewal, and termination.
- Policy version control.
- Centralized storage for life insurance policies and related documents, such as invoices, receipts, policy change requests, etc.
Fund management
- Real-time monitoring of funds on the policyholders’ savings and the insurer’s corporate investment accounts.
- User-defined rules for policyholder loan approval.
- Configurable loan interest and repayment terms.
- Automated cash value adjustment upon lending activities.
- Rule-based opening, confirmation, renewal, and closing of investment transactions on behalf of policyholders.
- Scheduled and ad hoc generation of investment performance statements.
- AI-based recommendations on investment portfolio optimization.
- AI-powered aggregation and verification of life insurance claims and claim-supporting documents:
- Claimant's statements.
- Death certificates of the insured.
- Post-mortem reports.
- Police FIRs.
- Disability certificates and hospital reports (for rider claims).
- Maturity claim forms, etc.
- Automated detection of fraudulent claims.
- Rule-based claim approval or rejection.
- Automated claim payments (death benefits, maturity payments, rider-specific payouts, etc.) to the pre-defined beneficiaries.
- Calculating and monitoring life insurance sales by period, average policy amount, underwriting speed, quotas vs. production, claim costs, loss ratio, and other metrics.
- Configurable analytical dashboards for various user roles: agents, underwriters, savings account managers, claim managers, etc.
- Scheduled and ad hoc submission of life insurance reports to the required regulators.
- Forecasting life insurance demand, revenue, and expenses.
- Customer self-onboarding.
- Automatic generation of requests for insurance quotes.
- Paying life insurance invoices.
- Notifications on the received quotes, successful payments, documents that need updating, etc.
- Instant messaging to communicate with life insurance specialists.
- AI-powered chatbots to help portal users solve operational, transactional, and security issues.
- (optional) A self-service life insurance price calculator.
Security and compliance
- Compliance with AML/KYC regulations, IFRS17, CCPA, CPRA, HIPAA, SAMA (for the KSA), GDPR (for the EU), NYDFS (for New York), and more.
- End-to-end audit trail of life insurance activities.
- AI-powered detection of employee fraud and non-compliance.
- Permission-based access control.
- Insurance data encryption.
- (optional) Secure recordkeeping of life insurance data and transactions in the immutable blockchain ledger.