Why Software Testing is Crucial for InsurTech Companies

For businesses, new technologies are making it easier than ever for them to connect with their customers. For one industry in particular, the ease of connection between company and consumer provides a particular peace of mind for both parties; this industry is InsurTech. Thanks to these technological developments, customers are not only more easily connected to businesses, but they are getting what they want faster and easier than ever. Does the customer need an insurance quote for their new home? New applications allow for them to receive quotes in a matter of minutes—sometimes seconds! Are they trying to find ways to reduce their car insurance costs? New devices can plug into vehicles and record driving behavior, which then is transmitted to insurance companies to analyse and decipher.

The Tolls of Software Testing

Yet, more software leads to more possibilities of error and bugs. In order to provide instantaneous quotes and real-time savings, InsurTech companies must be able to release software quickly, with as few customer experience-disrupting bugs as possible. While Software Testing plays a crucial role in this instance, it’s quite challenging to execute effectively. If bugs were easy to find, they would not be there in the first place. In a perfect world, end users (i.e. customers) would be unaware of bugs, because they would be caught by testers and phased out by developers prior to the release. Progressive offers a device that plugs into your vehicle and analyzes your driving habits; it’s marketed as a way to save you money on your insurance premiums. However, according to 1 Reddit thread, the device causes more headache than it’s worth. Claims of “incessant beeping” from the device caused users to manipulate their driving habits not to be safer, but instead to avoid the beeping; one user found themselves questioning whether or not to run yellow lights in order to avoid a hard braking—one of the harbingers of the beeping. Other causes mentioned were sharp turns without coming to a full stop, despite a lack of a stop sign, as well as swerving to avoid accidents. Thus, it’s rather clear that the software is not doing what it sets out to be, as advertised. Because of this software performance issue, users found themselves worried in an already stressful situation. But, as we mentioned before, Software Testing is not easy. When done manually, software testing not only becomes more difficult, but it requires more time and effort to make sure that the written code for the software executes correctly. Automated testing mediates the above situation, by allowing companies to test code much faster as opposed to manual testing—saving time and money, while increasing company confidence in their software. Moreover, Automation does away with the possibility of human error in the testing process. However, a common misconception with Test Automation is that companies can just begin automating their manual tests—but it’s not that simple! For it to be effective, frameworks have to be built, test cases need to be rewritten, and training needs to be implemented…it’s an investment of a large scale.

Why Automation is the Answer

That’s the keyword here: investment. While it can be a large, up-front cost (monetary, time, and effort wise), it can pay off greatly in the long term. Manual testing tends to have lower initial costs, in comparison to automated testing, but automated testing typically has a higher ROI in the long run. Test Automation also ensures deadlines will be met for releases, as the schedule is pre-determined; when the tests are completed, they are readily available within the Automation tool itself. Another benefit is the static nature of the insurance industry. Unlike other applications, such as social media and games, insurance companies are not consistently adding new features that require creating and/or rewriting new test cases; rather, it’s consistently testing the already established features to ensure they run properly. This is ideal for automated testing, as even trivial changes in the UI will require automated test scripts to be modified in order to work properly. This level of reduction in testing time is not uncommon when it comes to Automation. We have previously worked with a client who made the transition from financial services to InsurTech; with that transition, they recognized the need for a Test Automation solution—primarily looking to automate Webservice, API Testing, Performance Testing, as well as developing a fully streamlined testing process for CI/CD as a means of speeding up development and their time-to-market. In the end, they achieved an 80% Automation coverage rate, and they too reduced their regression cycle drastically—from weeks to days. You can read all about the specifics here.

Summary

For modern InsurTech companies, Test Automation is key to ensuring smooth customer experiences and fostering long-term, loyal customers. InsurTech companies find themselves held back by legacy technologies and strict regulations; however, they don’t need to continue lagging behind. Begin introducing automated testing early, keeping it in mind during the design process. Focus on the method first, then the tool, and be sure to choose a tool that supports your chosen method, thus ensuring that your tool and method both align with your business objectives. InsurTech companies face enough challenges as it is—there’s no need for testing troubles to add to that! If your InsurTech firm is looking to make the leap towards Automation, contact us today to see how we can help you provide peace of mind for you and your customers.

Noah Peters
Noah Peters is from the Bay Area. He is currently a student at the University of San Francisco, studying Business Administration with a focus in Marketing. Additionally, Noah works as a Marketing Intern at LogiGear Corporation. He is also an instructor of multiple high school marching bands, focusing on color guard and visual aspect. In his free time, Noah can be found researching the automotive industry—cars being one of his biggest hobbies.

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