How to Build an Insurance App That Will Turn the Industry on Its Head

With smartphones in our pockets, we now expect to manage our finances, order groceries, and book travel with a few taps on a screen, and insurance is no longer an exception.

Our PixelPlex team has been developing software development solutions for more than 17 years now, and we have created various platforms from the most basic to the most unique ones. In collaboration with our experts, we’ve put together this comprehensive article to walk you through everything you need to know about building an insurance app that’s not just a digital version of your old-school services, but a powerful tool to engage customers, speed up operations, and future-proof your business for scale and growth.

Get comfortable, and let’s dive into the ins and outs of insurance app development.

Why your insurance business needs an app yesterday

As we mentioned, today’s customers, especially the younger generations, live on their smartphones. They expect instant access, seamless experiences, and personalized services. And the stats back this up:

• The global insurtech market is projected to reach a staggering $207 billion by 2030.
• Over 80% of insurance customers want to interact with their providers through digital channels.

This is a fundamental change in customer behavior. An insurance mobile application is no longer a “nice-to-have”; it’s a critical tool for survival and growth. It allows you to:

• Connect directly with your customers: Build stronger relationships and make potential customers use a specific application as often as possible.
• Automate your processes: Ease claims and appointment scheduling, reduce paperwork – overall, increase efficiency.
• Gather valuable data: Understand your customers better, analyze their browsing and choice patterns, and offer personalized products.
• Promote your company: Innovate and differentiate your brand in a crowded market, among other generic businesses in your domain.

In short, if you’re not thinking about insurance mobile app development, you’re already behind. And, if you’re looking for help with your next project, our team of experts in banking software development is here to help.

Types of insurance apps

Just like there are different types of insurance, there are different types of insurance apps. Here are a few of the most common categories:

• Car insurance apps: These are probably the most well-known. They often include features like telematics (tracking driving behavior to offer personalized premiums), accident reporting tools, and roadside assistance locators.
• Health insurance apps: These apps help users manage their health policies, find in-network doctors, schedule appointments, and even track their fitness goals to earn rewards.
• Home and property insurance apps: These apps allow users to create a digital inventory of their belongings, file claims for property damage, and get tips on home maintenance.
• Life insurance apps: These apps can help users calculate their life insurance needs, get quotes, and manage their policies. Some even offer wellness programs to encourage healthy living.
• Travel insurance apps: A traveler’s most convenient and smart companion. These apps provide on-the-go access to policy information, emergency contacts, and real-time alerts about travel disruptions.

The key is to understand your target audience and their specific needs. What kind of insurance do they have? What are their biggest pain points? The answers to these questions will help you decide what type of insurance app development to focus on.

Must-have features for your insurance app

Now for the fun part: what should your app actually do? While the specific features will depend on the type of app you’re building, there are some core functionalities that every great insurance app should have:

• User-friendly onboarding and login: First impressions matter. Make it easy for users to sign up and log in, with options for social media integration and biometric authentication.
• Intuitive dashboard: This is the home base for your users. It should provide a clear overview of their policies, recent activity, and quick access to key features.
• Policy management: Users should be able to view their policy details, download documents, and make changes to their coverage without having to call a human.
• Effortless claims processing: This is the moment of truth for any insurance company. Your app should make it as simple as possible for users to file a claim, upload photos and documents, and track its status in real-time.
• Secure in-app payments: Offer a variety of payment options and make it easy for users to pay their premiums and view their payment history.
• Instant quotes: Allow potential customers to get a personalized quote in minutes. This is a great way to generate new leads.
• Push notifications: Keep users informed about important updates, payment reminders, and special offers. Just don’t overdo it!
• In-app chat and support: Provide a direct line of communication with your support team. A chatbot can handle simple queries, while a live chat option can provide a human touch when needed. Our AI development services can help you build a chatbot that’s both smart and helpful.

Advanced features to make your app shine

If you really want to stand out from the crowd, you’ll need to go beyond the basic features. Here’s where things get really exciting:

Artificial intelligence and machine learning

AI is a game-changer for the insurance industry. In fact, the AI in the insurance market is expected to reach $88 billion by 2030. You can implement features like:

• AI-powered chatbots: Provide 24/7 customer support and answer complex queries.
• Personalized recommendations: Analyze user data to suggest the right products and coverage.
• Fraud detection: Use machine learning for fraud detection to identify and flag suspicious claims. The FBI estimates that insurance fraud costs the U.S. economy more than $40 billion per year.

Blockchain for enhanced security and transparency

This is where our expertise at PixelPlex could really come in handy. Blockchain can be used to:

• Securely store and share data: Create a tamper-proof record of policies and claims.
• Automate claims processing: Use smart contracts to automatically trigger payouts when certain conditions are met.
• Prevent fraud: Create a transparent and auditable trail of all transactions.

Telematics and IoT

For car insurance apps, telematics is a must. By using a smartphone’s GPS and sensors, you can track driving behavior and reward safe drivers with lower premiums. The Internet of Things (IoT) can also be used in home insurance to monitor for things like water leaks and fire hazards.

• Gamification: Make insurance fun! Use points, badges, and leaderboards to encourage users to engage with your app and adopt healthy habits.
• Big data and analytics: Your app will generate a ton of data. Use business intelligence solutions to analyze this data and gain valuable insights into customer behavior, risk assessment, and market trends.

By incorporating these advanced features, you can create one of the best apps for insurance that not only meets customer expectations but exceeds them.

Your step-by-step insurance app development

Building an app can seem like a daunting task, but think of it as a journey with a clear roadmap. Here’s a more detailed look at each step on the path from a bright idea to a successful launch.

Step 1: Discovery and research

This is the foundational stage where you do your homework. Rushing this step is like building a house on a shaky foundation. You need to thoroughly investigate the landscape, define your goals, and ensure your idea is viable. This involves:

Deep market research

Go beyond a simple Google search. Identify your specific target audience and create detailed user personas. Who are they? What are their daily challenges? What do they desperately need from an insurance app? Look for untapped niches or underserved customer segments.

Competitor analysis

Download your competitors’ apps. Use them. Identify their strengths, but more importantly, pinpoint their weaknesses. Read their user reviews – they are full of information about what frustrates users and what features they wish existed.

Defining your MVP

You can’t build every feature at once. The MVP approach is about identifying the absolute core set of features your app needs to launch and solve a primary problem for your users. For an insurance app, this might be policy viewing, a simple claim submission feature, and contact information. This allows you to get to market faster, gather real-world feedback, and add more complex features in later versions. It’s a smart way to manage your budget and timeline.

Technical feasibility and strategy

This is where you bring in the experts. You need to know if your grand vision is technically possible within your budget. This is the perfect time to explore advanced technologies. For example, our machine learning consulting team can help you determine how AI can be integrated from day one to create a smarter, more efficient app.

Step 2: UI/UX design

This phase is all about the user experience. For an insurance app, which users often access during stressful times (like after an accident), the design must be clean, intuitive, and reassuring.

Wireframing

This is the architectural blueprint of your app. It’s a low-fidelity, black-and-white layout that focuses purely on structure, user flow, and the placement of elements.

Mockups

Now you add the paint and furniture. Mockups are high-fidelity static designs that incorporate your brand’s color scheme, typography, icons, and logos. This is what the final app will look like.

Interactive prototyping

This is where the design comes to life. Prototypes are clickable mockups that simulate the app’s functionality. This allows you and your stakeholders to test the user journey and iron out any navigational kinks before a single line of code is written, saving a ton of time and money in the long run.

Step 3: Development

This is the heavy-lifting phase where your vision is translated into a functional product. It’s typically split into two parallel streams:

Backend development

This is the engine under the hood. Developers build the server-side logic, databases, and APIs (Application Programming Interfaces) that handle data storage, security, calculations, and all the core functions your app needs to work.

Frontend development

This is everything the user sees and touches. Developers use the UI/UX designs as a guide to build the interactive elements, screens, and navigation. Our expert mobile app development services ensure this process is smooth and efficient.

Step 4: Testing and QA

No app is perfect on the first try. This critical phase is dedicated to finding and squashing bugs, ensuring the app is stable, secure, and ready for prime time.

Comprehensive testing

This goes far beyond just tapping around. It includes functional testing (does it work?), usability testing (is it easy to use?), performance testing (is it fast and responsive?), and compatibility testing (does it work on different devices and operating systems?).

Security scrutiny

For an app handling sensitive personal and financial data, this is non-negotiable. A thorough security audit and risk management process, including penetration testing, is essential to identify and patch vulnerabilities before a malicious actor finds them.

Step 5: Deployment

This is the moment you’ve been working toward. You release your app to the world. This involves preparing the app for and submitting it to the Apple App Store and Google Play Store, each of which has its own set of guidelines and a review process. Once approved, you flip the switch, and your app is live!

Step 6: Maintenance and support

Launching the app isn’t the finish line; it’s the starting line. Your app is a living product that requires ongoing care and attention. This includes monitoring for crashes, gathering user feedback, planning for future updates, and releasing new versions with enhanced features and bug fixes to keep your users happy and engaged.

Choosing the right technology stack

The technology stack you choose will depend on a variety of factors, including your budget, timeline, and desired features. Here are some of the key components:

• Platform: Will you build a native app for iOS or Android, or a cross-platform app that works on both? Our expertise in cross-platform app development can help you reach a wider audience with a single codebase.
• Programming language: For iOS, you’ll likely use Swift or Objective-C. For Android, it’s Kotlin or Java. For cross-platform, you might use React Native, Flutter, or Xamarin.
• Backend: This is the engine of your app. Popular backend technologies include Node.js, Python, and Ruby on Rails.
• Database: You’ll need a database to store all of your app’s data. Our database development team can help you choose the right solution, whether it’s a traditional SQL database like PostgreSQL or a NoSQL database like MongoDB.
• Cloud hosting: You’ll need a cloud platform like Amazon Web Services (AWS) or Microsoft Azure to host your app and its data.

How much does it cost to build an insurance app?

This is a tricky question to answer because the cost of insurance application development can vary widely depending on the complexity of the app, the features you want to include, and the development team you hire. However, we can give you a rough idea:

• Simple app (MVP): $25,000 – $50,000
• Medium complexity app: $50,000 – $150,000
• Complex app with advanced features: $150,000+

Keep in mind that these are just estimates. The best way to get an accurate quote is to contact a reputable development company like PixelPlex. We’ll work with you to understand your needs and provide a detailed proposal. And if you’re looking for financial software development services, we’ve got you covered there too.

Challenges in insurance app development

Building an insurance app is not without its challenges. Here are a few of the most common hurdles you’ll need to overcome:

• Data security: Insurance apps handle a lot of sensitive data, so security is paramount. You’ll need to implement robust security measures to protect against data breaches. Experts data security services can help you build a secure and compliant app.
• Regulatory compliance: The insurance industry is heavily regulated. You’ll need to ensure that your app complies with all relevant regulations, such as HIPAA and GDPR.
• Integration with legacy systems: Many insurance companies still rely on outdated legacy systems. Integrating your new app with these systems can be a complex and challenging process.
• User adoption and engagement: Just because you build it doesn’t mean they’ll come. You’ll need to have a solid marketing plan in place to promote your app and encourage users to download and use it.

User engagement and retention strategies

Getting a user to keep them coming back is a challenge. Insurance is a low-touch industry by nature, most people only interact with their provider when they have to pay a bill or file a claim. Your app’s challenge is to break this cycle and become a valuable, frequently used tool. Here’s how to move beyond the basics and create an app that users can’t live without.

Hyper-personalization approach

A recent study found that 72% of consumers expect companies to personalize their communications. But simply using a customer’s first name in a notification is no longer enough. The goal is hyper-personalization, which means anticipating user needs before they do.

Predictive analytics services become incredibly powerful here. Imagine your app detecting that a user’s driving patterns now include a daily stop at a school. It could proactively suggest adding a family member to their policy or offer information on coverage for young drivers.

Gamification

Gamification is about applying game-like mechanics – points, badges, leaderboards, and challenges – to non-game contexts. It taps into our innate desire for achievement and competition. For a health insurance app, this could be a wellness program that rewards users with points for hitting daily step counts or meditating, which can then be redeemed for premium discounts.

For a car insurance app, a “Safe Driver Scoreboard” that ranks users based on their telematics data can foster healthy competition and encourage safer driving habits, which benefits both the user and the insurer.

Human-like interaction 24/7

When a user needs help, they want it immediately. Expert AI chatbot development can create conversational AI that understands natural language, accesses policy information securely, and guides users through complex processes like filing a claim step-by-step. This provides instant, 24/7 support, drastically improving customer satisfaction.

Furthermore, you can use push notifications for proactive communication. Instead of just a payment reminder, send a helpful alert like, “A hailstorm is predicted for your area tomorrow. Remember to park your car in a covered location if possible.” This shows you’re looking out for them, building immense trust and loyalty.

Become an indispensable resource

The most “sticky” apps are the ones that provide value beyond their core function. Your insurance app should aim to be an indispensable resource for the user’s life. If you offer home insurance, include a digital home inventory tool, DIY maintenance guides, or seasonal safety checklists.

For a car insurance app, you could integrate features that help users find the cheapest gas prices nearby or log their vehicle maintenance. By providing these value-added tools, you give users a reason to open the app regularly, not just when there’s a problem.

To wrap it up

Phew, that was a lot of information! But the key takeaway is this: insurance mobile apps are a necessity nowadays. By embracing technology and focusing on the customer experience, you can build an app that will not only transform your business but also change the way people think about insurance.

Here at PixelPlex, we’re passionate about helping companies like yours navigate the digital landscape. Our team of experts in insurance software applications and blockchain can help you bring your vision to life. From initial concept to final launch and beyond, we’ll be with you every step of the way.

Ready to start your journey? Contact us today for a free consultation. Let’s build the future of insurance together – you and professional insurance software development services by PixelPlex.