How to Build an ERP for Insurance?

How to Build an ERP for Insurance
Faiza Khalid
CIS engineer | Developer | Tech Writer

Are you interested in developing an ERP for insurance?

The global ERP software market is expected to reach $117.68 billion by 2030. The BFSI sector (banking, financial services, and insurance sector) dominates the ERP market through features like financial accounting, financial management, cash flow management, investment management, etc.

Develop an ERP for Insurance Companies

Enterprise resource planning software helps businesses manage their core operations and utilize their enterprise resources, and accelerate innovation through integrated supply chain management, human resources management, customer relationship management, etc.

Insurance industries operate in a paper-heavy environment. They use an ERP solution as a useful management tool to gain administrative and operational benefits like reduced operating costs, improved data visibility, enhanced process control, better future business planning, etc.

You will follow the following steps to build an ERP for the insurance industry.

Decide the Project Scope and ERP Product Functionalities

You will start the ERP development project with a project plan that includes the project scope and goals. You will access your insurance business’s requirements for an ERP solution.

What does your insurance company want to achieve via an insurance enterprise resource planning system?

The end goals such as improvement in reporting capabilities, transaction processing, human capital management, etc., will help you decide the features of your ERP solution for insurance firms.

An ERP software for an insurance provider mainly has the following key features:

Finance and Accounting Management: It helps organize the overall budgeting procedure, gives control over the whole cash flow, improves accounting transaction management, and helps with financial reporting and planning.

Bill Management: It helps work out efficient pricing models for customers.

Revenue Recognition: It helps record contracts for all products and services, such as service contracts.

.Accounts Receivable and Credit Management: It helps organize data of debtors and creditors, including their contact details, past interactions with the company, accounts payable, etc.

Human Resource Management: It helps gather information from various departments and manage employees’ data, compensation, timesheets, performance, etc.

Customer Relationship Management: It helps build customer relationships through efficient customer support channels. You get instant access to customer details, previous interactions, future leads, etc., through efficient reporting and analytical dashboards.

Supply Chain Management: It provides visibility into the supply chain that helps optimize its various stages, strengthens the decision-making process, supports effective communication between suppliers and purchases, etc.

You will finalize the functionalities of your ERP system and include them in a systems requirements specification document. The SRS document will help your development team to develop the features as per business requirements.

Form an ERP Development Team

You will need professionals for the following roles:

  • Project Manager: A project manager helps to adopt the right product development methodology, devise a product development plan, assign development tasks, manage the product implementation team, give cost and time estimates, etc.
  • Business Analyst: A business analyst researches the target market, analyzes the end-user requirements, incorporates the market demands into the end product, and works with the project manager in the product planning process.
  • UI/UX Designers: A UI/UX designer helps to design an intuitive and appealing user interface following the user experience principles.
  • Frontend and Backend Developers: A frontend developer codes the software frontend layout, and backend developers develop the core ERP functionalities, manage API integrations, build database models, deploy software features, etc.
  • Software Testers: A QA engineer or a tester tests the software application and ensures it meets the functional and non-functional requirements without any bugs.

Provide Development Infrastructure for Insurance ERP 

After forming an ERP development team, you have to provide the required software development infrastructure and tools to your designers and developers.

Cloud infrastructure is popular today for software development due to the numerous benefits to businesses, like easy scalability, minimum startup costs, instant provision of the latest technologies, etc. 

Moreover, the cloud service providers host and manage computing and development resources like servers, database technologies, networking resources, etc., and your development team focuses on product design and development.

You can read our article on cloud development tools for more information.

ERP for Insurance Design and Development

You can start the ERP development process with minimum viable product (MVP) development. An MVP contains all the essential features of a software application and continuously improves through user feedback.

ERP Application Design

Your application designers will now create design wireframes and prototypes that explain the interface layout, color theme, interaction of application components, etc.

Your application designers will use tools like Adobe XDMicrosoft Visio, etc., to develop low-fidelity mockups and high-fidelity prototypes.

Frontend Development

Front-end developers will develop the front-end of the ERP application according to the prototypes provided by the UI/UX designers. 

Your front-end developers will use programming languages like CSS, and JavaScript and frameworks like BootstrapReact.jsjQuery, etc., to develop a dynamic user interface.

These frameworks provide ready-to-use components, virtual DOMs, etc.

Backend Development

Your backend developers will code the core functionalities of your ERP system. Software developers usually use programming languages like C#, PHP, Java, etc., to develop enterprise-level applications. 

These programming languages offer easy scalability, robust security, and support of a range of development frameworks and tools. 

For example, your backend developers can use the Doctrine library project and Symfony framework for the development of a high-performance ERP solution using PHP programming language.

Database Development 

This includes designing and developing a data model for efficient business data storage and retrieval. You developers will use database technologies like PostgreSQL, MongoDB, etc., after analysis of the ERP data requirements.

PostgreSQL is a relational database management system with SQL compliance, whereas MongoDB is a document-based database system defined as a NO-SQL database program.

You can read our article on SQL vs. NoSQL for a detailed comparison between the two database technologies.

Machine Learning and Data Analytics

Your software developers will work with the latest technologies to build advanced data processing, visualization, and task automation features in your ERP software.

Your developers should be proficient in machine learning algorithms and data science techniques. They can use tools such as IBM Watson StudioTableauGoogle Cloud AutoML, etc., to process big data and deploy ML models.

Test your ERP solution for Insurance

Test routines will ensure that your ERP solution is bug-free. Software developers will play their role and ensure code quality through unit testing, integration testing, etc.

Your QA engineer will conduct more comprehensive testing procedures like performance testing, regression testing, usability testing, security testing, etc., and ensure that your ERP software meets all the planned requirements.

Your software testers can use test automation tools like Katalon StudioIBM Rational Functional Tester, etc., to automate test cases, manage test data, etc.

Deploy the ERP Product for Insurance Businesses

Now that you have developed and tested your ERP application, you can start to plan for its deployment. Your development team will build the deployment pipeline.

Your development team will use DevOps practices where the development and operations teams work together on software deployment.

A DevOps-based continuous integration/continuous deployment pipeline ensures task automation and frequent testing. Your team can use DevOps tools like Git for version control, Jenkins for continuous integration, Ansible for configuration management, etc.

According to your deployment plan, your project team will ensure the ERP solution integrates seamlessly with the existing system, there is no discrepancy in the migrated data such as duplicate data values, and every feature, including reports, generates accurate results, etc.

Monitor and Maintain

Once your employees begin to use the new ERP software for insurance procedures, you will set KPIs to monitor the overall system performance. These KPIs will help you analyze if you have met the ERP project’s goals outlined in the beginning.

The five main KPIs for successful ERP implementation include downtime, demand forecast accuracy, schedule adherence, IT spending, and customer experience. 

You also need to maintain the ERP system. ERP Maintenance is an ongoing process. You will need to keep up with the end-user requirements, upgrades in software development technologies, etc.

Final Thoughts on Building an ERP for Insurance

There are multiple ready-made ERP solutions available in the market, but not all integrate seamlessly with every business operation. Custom ERP development helps to build a software product that meets specific business management needs. However, this is a complex project.

You will require a competent team of software developers and managers to undertake ERP implementation for insurance brokers. If you, as a business CTO or CEO, do not have the required ERP developers, we would advise you to partner with a credible software development company.

Why not take a look at the field-expert software developers community at DevTeamSpace? All the software developers and designers at DevTeamSpace are vetted for their skills in the latest technologies. Moreover, senior developers with experience in developing similar software solutions manage these software developers.

Software developers at DevTeamSpace follow an AI-powered agile development process that ensures collaboration between team members and managers and timely delivery of the end product.

If you wish to partner with these skilled software developers to develop enterprise resource planning and management tool, you can send us your project specifications via this quick form.

One of our account managers will get in touch with you to discuss further details on team building, project planning, etc.

FAQs on ERP for Insurance Sector

1. How do I set up an ERP?

First, you will choose between ready-to-use ERP implementations or customer ERP development. After you select the ERP system according to your business requirements, you integrate it with your current system, configure it, perform data migration, test your new ERP, train your employees and business users on it, and go live. You will also monitor the business growth via business performance metrics.

2. What do you need to build an ERP system?

You will need a competent team of ERP designers and developers with experience in ERP development for multiple industries, as available at DevTeamSpace. You will provide them with the development infrastructure, and they will design, develop and deploy your ERP solution seamlessly.

3. What are the five components of ERP?

The five components of ERP systems include finance, human resources, manufacturing and logistics, supply chain management, and customer relationship management.

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