Unveiling the Top QE/QA Trends Shaping the Insurance Industry

Unveiling the Top QE/QA Trends Shaping the Insurance Industry

Why is Quality Engineering all the rage lately? What does this discipline of engineering have to do with the insurance industry? A more simplistic answer to these questions has to do with the expeditious rate at which new-age technology is flooding the markets. The global pandemic catalyzed the digital revolution today and about 91% of all organizations are indulged in digital undertakings in some way or the other (Gartner).

With all the technological advancements, the industrial world only has the choice to either adapt quickly or get left in the dust. Of course, the insurance industry is no different. Insurers have realized that “reaction to risks” is not an effective strategy to remain competitive anymore. Their focus is shifting to “prevention of risks and losses,” and fast. A heavily adopted trend for the insurance industry has been core transformation, which roughly translates to innovating core operational systems in a way that ensures higher accuracy to mitigate risks while continuously evolving in response to the market. External factors that require equal attention include the tech-savvy customers interacting with the organizations’ interfaces. It is not enough to just sell goods and services anymore. Firms need to keep up with the evolving consumer markets.

Quality Engineering (QE) oversees the development, management, and maintenance of products and services in a way that ensures optimal use of inputs while delivering high-quality and quantity products that meet the required standards and contribute to higher customer satisfaction. Quality engineering for the insurance industry helps in modernizing core operations (claims systems, insurance policies, managing legal and regulatory policies, etc.) with state-of-the-art technology and allows insurance companies to gain a competitive edge in the market. QE achieves this through processes including end-to-end automation testing, rigorous quality assurance testing, and deploying predictive analytics models.

Here’s a look at what you, as an insurance enterprise, need to look out for to remain ahead of the curve.

Challenges to Modernizing Your Core Systems

Digital Disruption

As explained earlier, the need for digitizing the business models for insurance companies is higher than ever. Relying completely on traditional models is not enough to keep pace with the competitors anymore. The digital revolution has reeled in new expectations from the insurance industry – deploying a customer-first approach to operations, and incorporating the latest technologies to yield faster, better, and more accurate insights from their data analytics processes.

Evolving Customers

It’s no secret that the consumer landscape has changed drastically over the last few years. Consumers have become more aware of their rights while interacting with a company or product in the market. The digital revolution has made possible a) a larger number of goods and services providers competing for the same consumers; b) the ease of faster delivery to market, all thanks to the rise of automation processes; c) a much wider range of providers for the consumers to choose from.

If insurers do not come up with strategies to keep up with the changing market and consumer landscape, they might be in for their last run. Consumers are pining for a more personalized experience with custom offerings catering to their needs better.

Compliance with Regulatory and Legal Frames

The regulatory landscape remains ever-evolving with added complexities. Non-compliance due to failure to upgrade your systems can deal a heavy blow to the company’s finances and reputation. Insurance companies require integrated tools that assist in taking care of these regulations as and when necessary.

Security Risks

Let’s say your traditional systems are in good shape and get the work done. Then, there is no need to tinker with them or upgrade the way you conduct business, right? Well, one setback to the ease of digitization is that it brings about widespread accessibility. If your systems are not protected with the latest security protocols, especially traditional systems, you might risk leaving your classified data and resources vulnerable to theft.

Performance Dysfunctionality

Software Testing is a key component of application building. If you release an app to the market without ensuring its capacity to handle consumer traffic, user interactivity, dysfunctional features, etc., you have already reached the end of the line. Executing performance testing for application interfaces while building the product helps prevent risks of such dysfunctionalities blowing up your operations.

Which Key Trends to Leverage for Your Insurance Company?

1. Connected Insurance (IoT)

Connected Insurance creates an integrated plethora of inputs and knowledge from a variety of sources improving a firm’s ability to make better informed decisions. It accelerates the reliability and collection of data which ultimately contributes to improving the way decisions are implemented in the insurance industry.

IoT integrated with insurance operations can create a network of connected devices (health watches, cars, smart homes, etc.) to collect the required knowledge for better software development. QE ensures that this model is built and managed in a way that adds to the efficiency of operations and decision-making capabilities of stakeholders.

2. Automation and Test Automation

Just like any other industry, the insurance sector also comprises voluminous tasks. However, due to the lack of automation integration with their daily operations, innovation is coming rather slowly to this industry. Leveraging RPA, AI, and ML applications to automate core operations – automated billing, managing claims and policies, underwriting, etc. – and collecting additional insights can bring companies to pace with operational efficiencies.

Similarly, automating all testing processes will allow firms to save time and costs on operating and maintaining several testing tools and resources. This will help streamline testing processes and ensure continuous delivery of software while ensuring reduced time-to-market.

3. Leveraging Cognitive Technologies

The role of Artificial Intelligence is paramount in driving digital transformation. Leveraging AI as a core component for QE operations will not only help in rigorous automation but also provide key insights into processes like data analysis, and logic-based reasoning for informed decision-making. AI comprises cognitive technologies like ML and NLP which contribute towards preventing grave errors in software testing processes, saving companies from incurring heavy costs and losing time. Orchestrating QE strategies around these intelligent technologies will help IT teams to ensure the efficiency of the test design, robust test data management and execution, improved test coverage, and provide a centralized test data repository for QA teams.

4. Microservices Architecture

Leveraging microservices architecture and APIs has become a consistently rising trend in the insurance industry. API integration has caused a paradigm shift in how insurers provide their products and services through the evolving IT infrastructures. This new approach offers enhanced agility, reduced costs, and accelerated time to market. Moreover, it opens up a plethora of opportunities for new revenue streams and distribution channels that would otherwise remain untapped.

How Do We Help?

ImpactQA prides itself on being one of the top testing and quality assurance services providers. Whether you need modernized capabilities for your core applications or robust testing solutions, we ensure all your needs are met while prioritizing data security and testing efficiency.

Our certified team of expert testers encompassing specific domain knowledge will ensure that your applications receive the best QA evaluation and assist you in curating a testing strategy best suited to your requirements. We leverage the right combination of cognitive technologies to uplift your core operations.

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