Apr 6, 2021
Insurance App Testing: Major Test Coverage Techniques
The testing of an insurance application is necessary as this sector consists of different companies that provide risk management in the form of insurance contracts. Earlier, there were two insurance companies in India – General Insurance Corporation of India (GIC) and Life Insurance Corporation of India (LIC). But, now, there are about 34 General Insurance and 24 Life Insurance companies that offer several innovative products to fulfill the different needs of people. Most of these industries may have tie-ups with international firms.
These companies offer plenty of policies to customers which have their own benefits and drawbacks. Each investor has his/her future goals, needs, budget, and risk appetite. In the past, these companies relied only on paper-work and door-to-door service.
However, in the digital age, insurance industries are using technology and software to shape their businesses, transforming the customer experience by providing an abundance of benefits to policy holders in their daily lives. Today, they use robust software systems to deal with numerous insurance activities like managing customer’s data, handling billing processes, developing standard policy forms, coordinating between branches, and rendering quality services to the customer.
Though the work activities of Insurance are distributed among different branches, and it is obvious each branch have separate software systems that are needed to test with the proper domain expertise to ensure that the application will meet the unique customer’s expectations by guaranteeing durability, performance, quality, and consistency before actual deployment.
Different Insurance Domain Applications
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Life Insurance
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Travel Insurance
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Motor Insurance
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Health Insurance
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Property Insurance
Life Insurance: The purpose of a Life Insurance application is to issue a policy and ensure financial freedom to the policyholder for his family members after death. Life Insurance includes different types of policies that are Whole Life Insurance, Term Plan, Endowment Plan, Money Back, Child’s Plan, Retirement Plan, and United Linked Insurance Plan.
Travel Insurance: Travel insurance applications offer financial aids to travelers in case of trip cancellation, loss of baggage, and many more. Companies offer different types of travel insurance plans in the country, such as Internation travel insurance, domestic travel insurance, and home holiday insurance.
Motor Insurance: The goal of Motor Insurance is to offer a policy that gives financial support in the event of accidents for your bike or car. There can be one or two more software designed for Motor Insurance as it is divided into three categories such as Commercial Vehicle Insurance, Two-Wheeler Insurance, Car Insurance.
Health Insurance: Health insurance is a type of general insurance, which aims to give financial assistance to policyholders when they get admitted to hospitals for their treatments.
Property Insurance: Any immovable structure or building can be insured through property insurance plans. The insurance can be done for commercial space or residential space. It also offers financial support and may take care of the content inside the property.
Top Challenges in Insurance Solutions Development
Insurance service providers are providing several facilities and features over an application; namely, application for loan, online premium calculators, saving plans, refinancing mortgage, submission of documents.
It is crucial to ensure that the information shared over these platforms stays secure and provides accurate results to each person. Apart from that, there are a high number of chances that users will access this information from multiple devices. Proving the best level of customer experience is also necessary to achieve success in the insurance industry. Before knowing the test coverage techniques for insurance app testing services, you need to understand some challenges that insurers face today.User-friendly Interface
Customer experience always comes first. It is essential to understand that your customers want a user-friendly interface because it helps them know what the product is about. With an intuitive and clean interface, they don’t need any tutor to run the application.
Data Security
Cybercrimes are increasing day-by-day. Healthcare applications contain the most sensitive matter of customers. Thus, don’t skip to get health insurance application testing because you may involve several features in your healthcare insurance software like sales team management and tracking, auto lead allocation, instant policy generation, online payment acceptance, lead generation and collection of documents, Insurance CRM module, health claim management and settlement, and so on.
All these features can be of complex nature and may vulnerable to cyber-attacks. To fully-ensure its compliance with the Dodd-Frank Act and DOL Fiduciary rule, you definitely need to get the testing for any insurance product.
Omnichannel Distribution
The customized web and mobile insurance solutions provide a seamless cross-platform experience to customers. Android and iOS applications can serve as an extension to a web portal and give an unparalleled onboarding experience.
Digital-based insurance applications can attract more users compared to a single mobile app. It is necessary to get a compatibility guarantee for different mobile devices.
Addition of New Functionality
It is challenging to make the software bug-free after adding new features to it. Even if the application is working fine with old features, but your users can experience crash issues and unreliability when you introduce new functionality in your application.
At this point, you may have to face negativity about your brand. Therefore, always get functional and regression testing from the service provider of insurance domain applications and ask them to check the correctness of new features.
What to Test in the Insurance Application?
When it comes to insurance testing, you need to check different types of modules by using specific test coverage techniques. Some modules that you need to keep in mind while testing is:
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Policy admin system
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Claim admin system
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Policy quote system
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Underwriting
Policy Admin System
Policy admin system is a software solution that focuses on implementing insurance functions with binding, quoting, endorsements, rating, and renewals. The quality of the admin policy system can have a severe impact on the overall market’s competitiveness and operational efficiency.
Customers' personal details and their policy details are stored in the policy management or policy admin software. There are many more things that can be present in the system, but you need to focus on the main functions during testing.
For example,
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Policy life cycle or policy workflows.
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Document management and processing.
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Financial and non-financial transactions.
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Policy lapse processing.
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Coverage Change.
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Renewal and cancellation of policies.
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Alerts and reminders of premium due dates.
Overview of Claim Admin System
The success of the insurance company depends upon the effective and very sophisticated claim processing and management software. It helps insurers to evaluate and manage their insurance claims. In this process, agents ensure to record all claim activities in a centralized system and handle their claim processes with automated workflows.
Claim details can involve negotiation, litigation, relevant policy, settlement communications, and claim assignments. The claim administrator software, also known as claim management software, helps insurers reduce fraudulent claims and claims management costs by using various tools and techniques and ensuring the desired customer experience.
Various factors you need to include for the testing of the claim admin system, including the test coverage matrix, to make sure that the application will be thoroughly tested. The major focus is given to the claim life cycle, claim assessment, claim processing and transaction, payout set-up, maturing processing, and policy surrender processing activities.
The best claim administration system is the one that allows companies to analyze claims and helps them control and monitor risks effectively. It should be tested well and powerful enough to prevent valuable data from unauthorized users. One should provide encryption for the data and have a multi-level access password facility in the software. It also should be designed well to obtain the relevant information. For each claim, data should be organized and clear for users, and if there is any issue in this process, then you should focus on its correctness.
Policy Quote System
A quote for insurance is a forecasting process of what your rate could be with potential insurance carriers. You can change a quote based on how much information you want to give at the time of the quote. The more data you provide on the quote, the more accuracy you can acquire for your policy quote.
Providing the quote as per the customer requirement is necessary, and there are different kinds of customers, which may require distinct coverage. Thus, you should have the best test coverage techniques for the testing of the policy quote system.
Important points that you need to consider for a policy quote system testing are:
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Test and confirm the policy date effectively.
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Verify the rate structure for generating a quote.
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Verify the plans based on your customer needs.
Underwriting
Underwriting is the procedure of examining the risk of insuring a car, driver, home, or individual in the case of health insurance or life insurance. For this, you need to determine whether it is possible to bring profits to the insurance company after giving insurance coverage to the business or an individual.
Before accepting the application of a person that will buy a policy, it is the responsibility of underwriters to assess the risk associated with that person. We can say that it is a risk assessment process in which the company determines the premium for the insured person and performs the risk analysis.
The main modules that you need to test in the underwriting process are:
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Underwriting quality.
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Complex business rules.
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Medical history.
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Driving history.
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Rating efficiency.
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Vendor interfacing.
Additional Tips to Follow for Insurance Domain Applications Testing
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Number Factor
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Date Factor
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End-to-End Application Testing
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Role-based and Permission-based Testing
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Automation Testing
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DevOps and Agile-based Testing
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Integration Testing
