Mobile app functionality is a vital asset for insurance companies because their customers tend to use mobile devices as the primary source of communication and education. Almost every interaction between a policyholder and their insurance company is done through mobile apps, so the amount a firm invests in their app can often define customer relationships.
Not unlike the industry itself, insurance mobile app development is complex. Factors such as service complexity, regulatory burden, data volume and the urgency of customer needs all add to the work that an app must perform to justify the investment. A sub-par application might not only turn away customers but also expose insurers to unnecessary liability.
To help industry leaders understand e xactly how to go about creating the perfect mobile insurance app, we will cover the following major approaches to mobile app development:
- White-label mobile apps
- Custom software developers.
Within each section, we will discuss the pros and cons and end with a final verdict on the best way to create your mobile app.
White-Label Mobile Apps
White-label apps are pre-built mobile apps developed by third parties and sold to firms that simply add their branding and data to the app. These apps are more affordable than in-house projects because developers create a select few products and sell them to several customers, which offsets costs and allows them to charge a lower price.
Most third-party developers have a history of many successful app deployments, with support from large teams with extensive experience in maintaining them. These apps tend to have relatively few bugs and fast turnaround times for updates and fixes. As pre-built products, they can also deploy quickly.
While they are generally functional, white-label apps often lack features and quality in comparison to custom-built options. Since they focus more on being budget-friendly, they aren’t built with a specific insurance organization in mind and offer generalized feature sets that can be somewhat limited. Although some developers offer the ability to customize features, they usually come at a steep cost that negates the cost-effectiveness that makes white-label apps attractive.
Even with added “custom” features, white-label apps cannot compete with the cohesive, purpose-driven nature of the other two app development options in terms of quality. This option offers insurance companies very little control over the product, which is usually developed prior to a relationship with the dev team. Furthermore, white-label developers typically work with a higher volume of clients, which can make it difficult to get responses to communications.
White-Label Mobile App Pros and Cons
| Pros | Cons |
|---|---|
| ✔ Lower cost | ✘ Limited and generalized functionality |
| ✔ Quick deployment with no need for internal maintenance staff | ✘ No control over the product |
| ✔ Relatively bug-free | ✘ Developers can be more difficult to contact |
Custom Software Developers
The other third-party option is hiring a custom software developer to create a bespoke app specifically for your insurance company’s needs. While custom mobile application developers cost more than white-label choices, the possibilities are endless in terms of features.
Every feature in your application will be specifically designed to resolve your organization’s pain points and address your policyholders’ needs. Custom apps can be far more complex and include unique features that no other company offers their clients, giving your brand a market advantage that will drastically improve your customer experience.
In addition, custom developers often have access to more experts in recent technology since they must frequently evolve to meet the needs of a variety of client businesses. The same client-driven nature of their projects also makes them easier to reach than white-label firms that operate on the expectation of relatively uniform experiences across their client base. Team size is usually comparable, but custom devs generally provide greater expertise due to the complexity of their operations, which makes bug fixing and user education quick and accessible.
The only potential downside to custom software dev firms is the cost, which is higher than that of white-label apps but not quite as expensive as hiring the necessary talent to make a similar quality app with an in-house team – if you manage to find them. In addition, while purpose-built apps can take longer to build and deploy, this isn’t necessarily a drawback because devs use the time to conduct a deep dive into your business operations to ensure they meet all of your firm’s specific needs.
Custom Software Developer Pros and Cons
| Pros | Cons |
|---|---|
| ✔ Limitless, high-quality features | ✘ Higher cost |
| ✔ Purpose-driven and customizable | ✘ Moderately long time-to-deployment |
| ✔ High level of expertise | |
| ✔ Easy access to development staff |
Insurance Mobile App Development: Final Verdict
Working with a custom software development partner is the best option for insurance mobile app development. This provides the best of both worlds, combining full control and customizability for your business’s needs with the cost and time savings of outsourcing. Custom developers, especially those on the cutting edge of technology such as AI and machine learning, offer the most value for your investment without forcing you to compromise on quality.
The key to a quality insurance mobile app is choosing the right partner.
Build the Best Insurance Apps with 7T
At 7T, we use a problem → solution approach to creating genAI solutions for our clients in the insurance industry. Through our custom-built platforms, machine learning and AI technology can provide significant operational advantages with a robust ROI. Our team will identify your organization’s challenges and pain points, oftentimes even showing up on-location for a time to embed ourselves within your business and understand your needs from a first-person perspective. Then, we’ll architect a value-generating solution to transform your vital business processes and meet your goals.
7T is based in Dallas, Houston and Charlotte, NC. But our clientele spans the globe. If you’re ready to learn more about insurance mobile app development, contact 7T today.
