The world is transforming and digitizing as technology develops with an increasing velocity. As a consequence, the insurance industry is having to rapidly address digital transformation to meet the needs of an increasingly demanding customer base. To maintain quality and optimize user experience during this ongoing cycle of often diverse change and disruption is one of the major challenges that insurance companies are currently facing.
According to a forecast by GlobalData, a data and analytics company, the revenues of AI platforms in the insurance industry are projected to rise from $1.2bn in 2019 to $3.4bn in 2024, representing a massive 23% CAGR growth during this period. This is a significant increase in investment required to embrace AI-driven, digital transformation in the Insurance sector to maintain competitive advantage and achieve this forecast CAGR will see the rate of change further accelerated.
Insurance is a complex domain, even before technology requirements are considered. There are multiple business/financial processes, vast amounts of data, complex risk analysis and management procedures and regulatory and compliance requirements.
A digital insurance application provides your customers with their own personalized window into the world of insurance. It will present bespoke products and pricing, offer upsells, manage the underwriting experience, and allow customers to track their claims or policies, handling, and processing. That’s why it is vital for you to focus on expanding your digital and AI technology and ensuring your insurance app provides your customers with a best-in-class insurance experience.
Optimizing user experience and gaining customers’ trust are two key benefits of digital transformation in the insurance industry. Therefore, digital transformation in the insurance industry and the increasing use of AI technology needs to be supported by the quality engineering practices that help mitigate the quality and velocity challenges that will arise. Effective quality engineering will also proactively safeguard your insurance application from vulnerabilities.
So, to make your digital transformation journey seamless, you require a robust testing and quality engineering solution to support your objectives.
To ensure the success and popularity of your insurance application, gaining your customers’ satisfaction and trust is crucial. To achieve this, your goal should be delivering a solution that can ensure users the safety and security of their data and swift and simple customer experience.
Here are the top 6 problems insurance software or applications generally face, with a specified mitigation plan for each problem, to illustrate just how much an effective and efficient QE (quality engineering) is needed in the insurance industry.
Insurance applications and software store and process vast amounts of data and can be prone to data mismanagement. However, it is crucial to maintain data integrity as misleading information can lose your customers’ trust and cause your company to fall foul of the regulator further impacting your brand.
How quality engineering helps:
Digital assurance is encouraging insurance companies to take the necessary actions, such as Cloud Migration, to optimize user experience by creating rapid, polished applications with well-managed data sets. Smart AI driven Big Data Testing will quickly help any insurance application manage and process its data by validating the correct data storage and usage in real-time.
The insurance industry is continuously changing. Since the move towards digitalization in the industry, it has become even more crucial for insurance leaders to keep track of the technology upgrades. Old and obsolete tech can result in vulnerabilities, suboptimal customer experience and poor service. Insurance service providers must therefore embrace continuous digital transformation, to avoid losing potential business to competitors.
How quality engineering helps:
Testing and QE helps an insurance service provider analyze the need for optimizing its IT infrastructure. Quality engineering experts will develop rapid automated assurance solutions that ensure a seamless digital transformation for you and your customers. This will consequently help drive better customer experience and increase customer loyalty to your brand and your services.
When integrating AI (Artificial Intelligence) into your software systems or adding new features for smooth workflow you will be faced with some new challenges pertinent to the new technology. For example, how to best assure and validate your non-deterministic AI solution for pricing and underwriting or Fraud Detection. If the latest technologies are not suitably proven they non-can negatively impact the business operation affecting the overall user experience.
How quality engineering helps:
With the help of smart automated non-functional testing and new AI testing strategies and tools, new technologies can be implemented swiftly and effectively, resulting in greater efficiency and higher customer satisfaction. Thus, making your application smarter with AI driven underwriting & pricing, claims handling and fraud detection all supported by automated chatbots.
With the rising trends in cloud technology, insurance companies you will need to embrace this move to the cloud to make your data handling and overall operations seamless, as part of your digital transformation. However, the cloud migration process is complex, not all applications are cloud compatible and the vast amount of data involved increases the risk to the customer experience during the migration and/or the loss of business-critical and sensitive customer data during the process.
How quality engineering helps:
Cloud Migration Testing will ensure all your applications function and perform in the Cloud, and that your historical data is safely transferred without loss, leaving your customers’ experience unaffected during the migration process.
One of the most common threats for any industry is a cyber-attack or a data breach. Therefore, you will understand the sensitivity of dealing with all of your customers’ critical data and the absolute requirement to ensure this protected.
How quality engineering helps:
Tests should be performed by an expert Quality Engineering team to proactively detect vulnerabilities and prepare you for instances of cyber-crimes or data breaches. These tests include shift-left cyber assurance including vulnerability and security scanning, risk & posture assessments, security auditing, ethical hacking and penetration testing.
There could be situations where your system is loaded with too much content or times of peak usage, when response times and functionality may be negatively affected. Poor application performance will result in a poor experience for your customers and potentially lost business for your organization.
How quality engineering helps:
As an application is built, it will be loaded with numerous features and functionality to make it smarter. With the help of shift left performance and load testing, as part of your QE process, you will be able to analyze and check the performance of any application iteratively and tune it to ensure the optimal customer experience.
Intelligent quality engineering is essential for any industry to effectively undergo digital transformation and to keep up with the increasing pace of technological change.You never want to face a situation where your business is negatively affected because it is not able to keep up with rate of change necessary to remain competitive without impacting the end user experience.
Quality engineering is the one-stop solution for all your insurance app related challenges, as a it will quickly and effectively prevent your business from lowering its guard and losing its customers’ confidence with flawed applications or compromised data. QE does not just save money; it speeds up the whole process of delivering change allowing companies to do more while protecting their customer experience and their brand.
