Insurance industry challenges in the IT sector are due to the specifics of such projects. In the context of constant changes in insurance legislation, there are risks that the requirements for the developed software product will change. Therefore, it is advisable to apply a flexible methodology when developing a product, which allows you to make changes to the project in a timely and efficient manner in accordance with new requirements.
Also, the use of an agile development methodology makes it possible to identify and eliminate deviations from the desired result at the early stages of product development due to constant verification of the product by the customer. Among Agile methodologies, various approaches are distinguished, you can learn more about them at https://diceus.com/industry/insurance/.
Uncovering the essence of agile methodologies
Most agile methodologies aim to minimize risk by decreasing iterations – short periods of time that usually last one to two weeks. Each iteration looks like a shortened development life cycle and includes all tasks:
- Requirements analysis;
Despite the fact that the results of the work of a separate iteration are not enough to release a new version of the product, each iteration at the output has a working product with the implemented functionality planned in advance. Customers can see the result of development throughout the entire life cycle of the project.
The main goal of the customer is to achieve that the software system works without failures, errors, and is convenient and easy to use. Once developed according to the classical methodology, these goals may not be achieved. If you have any questions, please ask them at https://diceus.com/bespoke-software-advantages-and-disadvantages/.
Benefits of flexible approaches to digitalization of insurance
The introduction of an agile methodology for the development of a software system allows you to concentrate the benefits of each element in the development, while very the moment of interaction with the customer is important. The customer can see the development result throughout the entire life cycle of the project and make adjustments accordingly.
An example of a real case
Over two years ago, several experienced developers started an internal startup. They started developing a new digital platform for the insurance business. Actually, the company has already officially sold and supported a similar platform, but proactive programmers decided to create something more modern and productive. This is how a platform appeared, the task of which is to ensure the work of millions of insurance policies.
You need to understand that business never does anything for nothing. The problem with big companies is that they are inflexible. Any change in business processes takes an incredible amount of time, and as a result, they simply cannot keep up with the market. While small companies can quickly test marketing chips in small markets and offer more flexible products, then large companies cannot afford to work this way due to the overly complex structure.
The only way for large companies to quickly make changes, bring new products to markets, and process massive amounts of data are through flexible IT infrastructure. That is why large insurance companies become large IT companies.
An IT solution provider must not only develop but also understand how new technologies will be integrated into the business. An important addition: we provide not only finished products but also tools for modifying them, as well as for creating new products.