When it comes to creating insurance software, some might liken the process to baking a cake. You could, in theory, throw together some flour, sugar, and eggs, then hope for the best. But would you trust a slice of that haphazard creation at a party? No, you’d go for the one baked by the seasoned pastry chef who knows precisely how to fold, whisk, and bake with finesse. The same principle applies to insurance software: it’s all about experience. Or more specifically, insurance expertise.
Thankfully in our industry, innovation is served as the daily special, insurance companies need robust, future-proof software solutions that don’t just meet today’s demands but anticipate tomorrow’s. And, spoiler alert, that takes more than a bright idea and a flashy PowerPoint presentation. Let’s dive into why experience matters and sprinkle in some juicy facts, figures, and analogies to make it all stick.
1️⃣ Experience Navigates Complexity
Developing insurance software isn’t just about coding. It’s about understanding the deeply intricate, occasionally maddening, labyrinth that is the insurance industry. From underwriting and claims processing to regulatory compliance and customer expectations, there are complexities at every turn.
Here’s a figure for you: insurance companies spent over £200 billion on software and IT services globally in 2022. That’s a lot of investment riding on the assumption that the systems will actually work as intended. Yet, according to a Gartner study, 60% of all enterprise IT projects fail to deliver on their original objectives. Why? A lack of industry-specific expertise often sits at the heart of the problem.
Experienced developers with insurance expertise bring more than coding chops to the table. They bring the know-how to navigate these complexities and build solutions tailored to the nuanced and diverse needs of insurers, brokers and MGAs.
2️⃣ It’s All About Solving the Right Problems
Let’s imagine two startups entering the insurance software market. One has a team of bright, tech-savvy developers with zero industry-specific insurance expertise. The other has a mix of tech talent and grizzled insurance veterans.
The first group may create a visually stunning interface, but they’ll likely stumble when it comes to integrating claims systems or adhering to the labyrinthine GDPR regulations. Meanwhile, the second group is already thinking two steps ahead—designing systems that handle both compliance and customer satisfaction with ease and that get the insurance lingo down first time, without you needing to literally spell it out.
This difference in outcomes stems from what seasoned insurance professionals understand: the pain points of the industry.
3️⃣ Adaptability is Built In
The insurance industry is no stranger to change. From the rise of insurtech disruptors to regulatory shake-ups, staying ahead of the curve requires software that can adapt.
Take the shift towards digital ecosystems. A report by McKinsey found that 94% of insurers believe ecosystem partnerships will significantly reshape the industry by 2030. That means today’s software must be future-proofed to integrate seamlessly with everything from AI underwriting tools to IoT devices like telematics.
Developers with insurance expertise know how to build with flexibility in mind. It’s the difference between assembling IKEA furniture with or without the manual: you want someone who knows where all the pieces go, not someone who’s winging it.
4️⃣ Insurance Expertise Reduces Risks
Still not convinced experience is the golden ticket? Let’s talk money. According to IBM, the cost of a failed IT project averages £9,000 per missed day, and in industries like insurance, those delays ripple outward—affecting customers, regulators, and the bottom line.
And then there’s the reputational risk. Imagine launching a claims processing system that goes belly-up during a natural disaster or a quote-and-buy system that goes down in your busiest new business month of the year. The loss of trust alone can be catastrophic. As the saying goes, trust takes years to build but seconds to shatter. Plan accordingly.
5️⃣ Insight Drives Innovation
While tech expertise alone might lead to flashy ideas, it’s insurance expertise that grounds innovation in reality. For instance, a team with deep industry knowledge would know that introducing AI-powered chatbots is a complex notion in insurance and would be appropriate for some engagements, but not for others. When you’re reporting a claim, for example, sometimes you just want the reassurance of a human being.
Experience ensures that new technologies address the real needs of insurers, whether it’s predictive analytics for risk modelling or APIs for seamless integration.
6️⃣ It Saves Time (and Sanity)
Time is money, as the saying goes, and experienced teams save both. That’s perhaps never truer than in the insurance industry where time quite literally costs money. By understanding the industry’s quirks, these professionals can identify and avoid pitfalls that would otherwise cause delays and optimise your workflows to ensure you’re as operationally efficient as human possible.
For example, experienced developers know that insurance systems must reconcile legacy architecture with modern platforms. Without this foresight, you risk blowing the project timeline—and your budget.
7️⃣ Future-Proofing Isn’t a Buzzword, It’s a Necessity
Investing in experience doesn’t just future-proof your software—it future-proofs your business, your aspirations and your agility. Insurance expertise rather than just technology expertise enables development teams to think beyond the present, anticipating challenges and opportunities alike and truly work with you to unpack the intricacies of your business.
Think of it like hiring a builder to construct your dream house. Would you choose someone who’s just passed their GCSEs or someone who’s been in the trade for decades? The latter not only delivers a solid foundation but builds it to last against storms, floods, and (if you’re lucky) the odd zombie apocalypse.
Final Thoughts
No matter how you look at it, experience isn’t just a nice-to-have—it’s the scaffolding that holds everything together. With the right mix of tech skills and insurance expertise, development teams can create systems that are robust, adaptable, and ready for whatever the future holds.
So, next time you hear someone suggest that “any developer can build insurance software,” smile politely and remind them of that dodgy, amateur-baked cake. Some things are best left to the experts.
