Skip to Content
6 minutes read

Health Insurance Software Development: Benefits and Challenges 

By Robert Kazmi
By Robert Kazmi
6 minutes read

Health insurance companies must keep up with ever-evolving expectations from healthcare providers and patients alike. As a result, these companies require custom health insurance software with the ability to keep up with the demands of the healthcare sector. 

Your health insurance business might not have considered developing health insurance software, but a custom software solution can have a significant impact on the success of your health insurance company. 

This post will examine the benefits of health insurance software and the challenges of custom health insurance software development. 

Before investing time and financial resources in health insurance software development, it is important to know how health insurance software solutions will benefit your insurance company and the challenges commonly faced by health insurance companies when developing health insurance apps and software. 

The Benefits of Health Insurance Software 

Before you can decide if health insurance software development is the right choice for your insurance company, it is helpful to understand the benefits of health insurance software solutions. 

The primary benefits most health insurance companies get from health insurance apps and software include the following:

  • Improved communication
  • Business process automation 
  • Greater support for decision-making 
  • Better customer experience 

Improved Communication 

The health insurance industry relies on effective communication with patients and healthcare providers to process insurance claims promptly. 

A custom health insurance app can improve communications between health insurance providers, healthcare institutions, and patients by creating a centralized health insurance platform

Not only will a centralized insurance platform ensure that every party can be reached quickly and easily when needed. A health insurance app also securely stores and organizes communications for future audits. 

When building a health insurance application, medical insurers should enable as many forms of communication as possible, including email, live chat, video calls, chatbots, and routing phone calls to the insurance company helpline. 

Business Process Automation

One of the most significant benefits of health insurance software is process automation. Health insurance organizations have a lot of critical processes, such as patient and provider collaboration and complex financial management tasks, that can benefit from automation. 

In addition to the more complicated processes, health insurance groups must handle more routine processes such as HR, payroll, accounting, compliance, and talent management. 

Health insurance software can help companies streamline workflows and work more efficiently through automation. In the health insurance industry, human error can have devastating effects on people. 

By creating a health insurance application for your organization, you can reduce the risk of human error, save time, and save money. 

Greater Support for Decision-Making

The automation tools a health insurance software solution can provide your health insurance organization can also support decision-making efforts

A health insurance group must determine which claims are valid and which are fraudulent every day. Fraudulent claims can hurt the organization’s ability to pay valid claims. However, a health insurance organization cannot wait too long to pay claims because people require care in a timely manner. 

Health insurance software can aid organizations in the decision-making process by gathering the health insurance data for each claim and reviewing its validity in real-time, so health insurance agents can make better decisions on claims. 

In addition, health insurance software reduces the amount of paperwork and back-and-forth phone calls that were so typical of the health insurance industry when it came to resolving health insurance claims. 

Better Customer Experience 

Health insurance software simplifies health insurance services for customers, which leads to an overall better customer experience

Health insurance applications make it easy for users to manage their health insurance policies with a few clicks or taps in a mobile application. 

Health insurance software makes it easy for users to search for doctors in their health insurance network, submit claims, and more. It is not only patients that benefit from managing insurance policies on health insurance software.

Health providers also benefit from streamlined claims management and reimbursement. Good customer experience increases the retention rate of the medical insurance app. It is far cheaper to retain users than it is to attract new ones. 

Health insurance software can help your organization deliver a great customer experience that keeps users coming back for all of their medical insurance needs. 

The Challenges of Health Insurance Software Development 

While there are many benefits of health insurance software, there are also challenges associated with health insurance app development. 

It is important to understand the challenges of health insurance software development so your organization can make the appropriate preparations. 

The top challenges your company should be aware of include the following:

  • Regulatory compliance
  • Data sharing 
  • Data security 

Regulatory Compliance 

When building health insurance software, the two primary regulations you will want to consider are HIPAA and GDPR. Of course, there are other regulatory acts and requirements that you will need to comply with, but those are the main two. 

It is important to keep regulatory compliance in mind throughout the development process so you don’t waste time building features and functionality that won’t comply. 

Health insurance organizations should already be familiar with the regulations that apply to them, but it is also smart to work with an app development partner that understands how these regulations apply to the software. 

Failing to comply with regulations can lead to costly redevelopment efforts or even lead to your product being shut down. 

Data Sharing 

For insurance software to be effective and valuable to users, it must be able to share data in real-time with other tools, platforms, apps, and databases

Typically, developers will use APIs to produce this functionality. However, there is a significant amount of tools, apps, and platforms currently in use. Thus, the challenge for developers and insurance companies becomes choosing the right tools to ensure seamless data interchange. 

Data Security 

Insurance software relies on data sharing to be effective and valuable. However, reliance on data sharing also means data security is vital

Securing data is important in all development projects, but in health-related projects, security is even more critical due to the sensitive nature of the data being shared and stored.

Most of the regulations surrounding health insurance software deal with data security, so if you closely follow the regulations put forth in HIPAA and other regulations, you should have a pretty secure application. 

Final Thoughts 

Developing insurance software is beneficial for organizations despite some of the challenges it poses. If you want to learn more about health insurance software development and the technical possibilities, reach out to an app development partner with extensive MedTech development experience like Koombea.

Girl With Glasses

Want to Build an App?

Request a free app consultation with one of our experts

Contact Us