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Insurance & InsurTech: perspectives and embracing progress

How to build stable software when dealing with legacy
Monika Stando
Monika Stando
Marketing & Growth Lead
November 14
6 min

Insurance companies use digital technologies to enhance their offerings based on changing customer needs. In a survey conducted by EIS Group, 59% of insurers increased investment in 2021 and expect it will continue in 2022 with an emphasis on blockchain technology such as cost savings (38%), faster payments (37%), or fraud mitigation features. Transparency is one of them. It is relevant because this allows customers more convenient access to information about policies they may have through smart contracts. What is the state of insurance and InsurTech? Continue reading.

Table of contents
Global InsurTech Market Size
The World Insurance sector
Trigger points and further development of insurance
AI & Machine Learning lead the change
The 2020 impact on the insurance industry
Technology trends in the insurance industry
Three views on Insurance technological growth

Global InsurTech Market Size

Global InsurTech Market Size in 2022 was estimated at $5.45B and projected to grow with the compound annual growth rate (CAGR) to reach $159B by 2030.

The InsurTech industry’s partnership with insurance companies is helping to bring new technology that will improve customer experience and offer innovative solutions. For instance, Amodo has announced plans in regard to use blockchain-based technologies for its partnering company Galileo Platforms Limited. It aims at improving how they provide services while also strengthening market position through accepting cryptocurrency payments from customers like Metromile, who already use it as an option when buying car policies.

The World Insurance sector

The World Insurance sector, according to InsurTech Global Outlook 2021, currently writes a little less than $6.3 trillion worth of direct premiums, with motor vehicles making up 36% and health care accounting for 21%. Life insurance products include pension schemes as well as individual endowment policies.

InsurTech is becoming a popular investment destination for North American companies, accounting for 74% of total investments. Asia comes in second place with 14%. Switzerland accounts for 1%. The most popular investments are Health and Cross-liability (in total 63%) claims InsurTech Global Outlook 2021. These coverages come from commercial insurance contracts, which provide protection for both parties if one makes a claim against the other as though they had their own separate policies.

Trigger points and further development of insurance

The industry is being pushed by the pandemic to invest in and implement InsurTech, focusing on numerous areas including client-centricity with intelligent procedures. Accelerating virtual interactions for sales are also key among other things like cutting costs so that they can stay competitive.

This includes creating customized insurance packages as well as social policies targeted at consumers who might need them most. Like pricing premiums based on data from Internet-enabled devices which gives an indication of what people want or demand when it comes down right now.

Insurance companies often use AI/ML algorithms but there has been less focus put into developing these technologies beyond just deciding whether someone should buy auto policies.

AI & Machine Learning lead the change

The growth of the InsurTech industry will continue to be strong for the next ten years as it continues partnering with technologies like AI, machine learning and blockchain that are developing rapidly. These advancements allow companies more access than ever before to their customers’ information. This gives them an opportunity in providing personalized insurance policies based on individual needs rather than what’s available at any given time or place.

The 2020 impact on the insurance industry

The number of insurers investing in InsurTechs fluctuates with only 38% having done so since 2010. COVID-19 had a moderate influence on these investments; however, it is important to note that there are still many companies who did not change their strategy. They invest more in loss adjustment technologies such as underwriting software or data analytics tools for claims processing.

Insurers may take advantage by focusing on less risky business lines like property/casualty coverage which can generate higher profits than medical malpractice policies.

Technology trends in the insurance industry

Regarding technology trends, AI, IoT, and Predictive Analytics have seen increased investor interest in recent years and have been attracting large sums of investments by relevant Insurers, Tech Giants and Industry Giants.

The future of on-demand insurance is here, and it’s a gadget’s dream. With the internet at our fingertips, we can now purchase coverage from anywhere in just minutes. These new innovations have enabled businesses to create better products for consumers with more convenience than ever before.

Still, insurance companies, like many industries, deal with tech debt. System integrations and automation are common solutions looked for. Companies also struggle to find reliable technology partners.

„After carefully evaluating suppliers, we decided to try a new approach and start working with near-shore software house. Cooperation with Hicron Software House was something different, and it turned out to be a great success that brought added value to our company.

With HICRON’s creative ideas and fresh perspective, we reached a new level of our core platform and achieved our business goals.

Many thanks for what you did so far; we are looking forward to more in the future!”

Jan-Henrik Schulze
Jan-Henrik Schulze
Head of Industrial Lines Development at HDI Group

Three views on Insurance technological growth

Our background and focus on business processes allow us to have a good understanding of the challenges of legacy updates and the development of new functionalities that correspond with the demands of today and the future.

Insurance industry pains and needs

HDI’s need for support was not met by the previous suppliers. They had to deal with increased staffing and applications that were constantly being reworked or new features developed poorly due in part to an IT-driven focus rather than business-leading changes.

HDI needed strategic and holistic support from IT to keep their customers with digital assistance of processes. A lack of stability for new features as well as cost-cutting initiatives are common challenges that need to be addressed well.

Differentiation needed

Audits are what we have started with. Hicron Software House’s strength is its experience in a similar product development setup.

Our quality software development approach and experience in product development rooted in legacy is something large organizations really crave. This is our unique value large companies appreciate the most.

We have an exceptional skill set in creating enterprise solutions when legacy code/products need to be improved. We develop software with a partner, sharing best practices, full software development experience, and support.

Making an impact

It is important to set the focus on several aspects like quality, predictability of product development, out-of-the-box thinking since we are not in the organization, and no awareness of limits. Also to secure full Quality Assurance aspects: gathering requirements, development, testing, product releases and support.

We bring profit with our software development know-how, which finally leads to cost cuts (reduced time spent on bug fixes). In such an undertaking we mostly share the know-how – how to build stable software when dealing with legacy. This is followed by the best practices and future-proofing approaches. A fresh view on products’ different aspects like business, architecture, standards, and way of working are factors included when partnering with Hicron Software House. Get in touch to discuss your case!

Monika Stando
Monika Stando
Marketing & Growth Lead
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Testimonials

What our partners say about us

After carefully evaluating suppliers, we decided to try a new approach and start working with a near-shore software house. Cooperation with DSS from Hicron was something different, and it turned out to be a great success that brought added value to our company.

With HICRON’s creative ideas and fresh perspective, we reached a new level of our core platform and achieved our business goals.

Many thanks for what you did so far; we are looking forward to more in future!

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Jan-Henrik Schulze
Head of Industrial Lines Development at HDI Group

Hicron is a partner who has provided excellent software development services. Their talented software engineers have a strong focus on collaboration and quality. They have helped us in achieving our goals across our cloud platforms at a good pace, without compromising on the quality of our services. Our partnership is professional and solution-focused!

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Phil Scott
Director of Software Delivery at NBS

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