Reducing Insurance Product Development Time and Cost

Leveraging Insurance Software Development Platforms For Faster Deployment

Let's say you've got an idea for an innovative insurance product.

Perhaps it's a usage-based auto policy that leverages telematics data, a dynamic home insurance offering that adjusts premiums in real time based on smart home sensor inputs, or even a cyber liability product designed for small businesses operating in the digital space.

All of these are great ideas with a real shot at generating substantial ROI.

The devil's in the details though.

Traditional insurance product development has long been hindered by rigid legacy systems and a lack of flexibility. These systems typically demand lengthy, costly development cycles that require extensive customization and deep integration efforts.

Often built on monolithic architectures, traditional approaches make it challenging to adapt to evolving market demands or integrate with modern technologies. The process not only delays time-to-market but also escalates costs, with each modification or compliance update triggering a cascade of re-testing and re-certification procedures.

So you are looking for a way to overcome this issues and develop and launch new insurance products faster and more efficiently.

What are your options?

To overcome these challenges, insurance business and insurtechs are increasingly leveraging rapid software development platforms, open-source frameworks, and modular API-driven architectures.

Platforms like Openkoda provide a way to accelerate development of digital solutions while maintaining full flexibility—reducing build time by up to 60% without sacrificing scalability or compliance.

But wait, that seems to good to be true.

Can you really cut the time of insurance product development by that much and end up with a quality insurance software?

Let’s take a closer look and compare these two approaches.

Classic Insurance Product Development

Developing an insurance product from scratch is a complex and resource-intensive journey.

It requires multiple teams working in sync over 12 to 24 months, balancing regulatory compliance, security, and technological scalability.

This is how usually this process plays out:

• Phase 1: Discovery & Requirements Gathering (1-3 Months) – Insurers conduct market research, regulatory analysis, and define core functionalities. Missteps here lead to costly delays later.
• Phase 2: Core Development (3-6 Months) – Developers design and build policy, claims, and underwriting systems, ensuring integrations with legacy infrastructure and third-party services.
• Phase 3: Compliance & Security Implementation (2-4 Months) – Ensuring compliance with GDPR, CCPA, IFRS 17, and data security requirements adds legal reviews, security layers, and fraud detection mechanisms.
• Phase 4: Frontend Development & Customer Experience Design (2-4 Months) Creating customer portals, agent dashboards, and API integrations to ensure a smooth experience across multiple digital channels.
• Phase 5: Testing, Iteration & Optimization (3-6 Months) – Comprehensive testing, performance tuning, and compliance validation. Unexpected integration failures often lead to costly rework. This slow, expensive approach delays go-to-market strategies and makes rapid innovation nearly impossible.

Let’s now see how you can conduct insurance software development process in smarter way.

Insurance Product Development with Openkoda

Instead of starting from scratch, Openkoda provides a foundation that eliminates the heaviest lifting in insurance software development. Instead of spending months building core functionalities, insurers can configure, customize, and deploy products in a fraction of the time.

Imagine you’re launching an on-demand parametric insurance product for travel delays.

With a traditional approach, you’d spend months designing the policy system, building claims automation, and integrating payment gateways.

With Openkoda, you:

• Start with a configurable policy and claims application template instead of coding it from scratch.
• Leverage built-in automation to trigger instant payouts based on real-time flight data.
• Use Openkoda’s API connectors to integrate with airline databases and payment providers in days, not months.
• Deploy a customer-facing portal with pre-built templates adjusted for insurance workflows, skipping frontend development delays.
• embedded insurance for customer satisfaction

Instead of 12+ months, your custom application is ready for market in 3-6 months—fully compliant, secure, and scalable.

But that’s not all.

The application you build with Openkoda is highly customizable and adaptable.

If you need to modify pricing algorithms, risk assessment calculations, or claims logic, it can be done without complex redevelopment.

Want to test new sales channels, such as embedded insurance distribution through travel booking platforms?

Openkoda’s modular architecture makes these adjustments fast and efficient, allowing insurers to iterate and expand their product offerings seamlessly.

With Openkoda, you don’t just build faster – you gain long-term agility, ensuring that your custom insurance solution remains adaptable as market needs evolve.

If your 2025 strategy includes words like “innovation,” “technology,” and “agility,” then Openkoda is the platform for your business.

To see Openkoda’s full capabilities in speeding up insurance product development check out this comprehensive demo:

Openkoda Ready-Made Features

So how does the process of insurance product development using Openkoda looks like?

Openkoda offers a comprehensive suite of out-of-the-box features designed to significantly reduce development time, lower costs, and improve operational efficiency.

Here’s a brief rundown:

• Development Kit UI – Accelerates UI development for insurance platforms.
• Data Model Builder – Enables quick structuring of insurance data.
• Visual Dashboard Builder – Helps insurers create real-time insights and analytics dashboards.
• Automatically Updated REST API – Simplifies integration with external insurance systems.
• Custom Two-Way Integrations from the UI – Enables flexible data exchange with third-party services.
• Data Visualization – Enhances decision-making with clear, interactive reports.
• Data Import/Export to CSV/Excel – Facilitates smooth data migration and reporting.
• Multi-Tenancy – Enables insurers to serve multiple customer segments efficiently.
• Clustering – Ensures reliability and scalability for insurance applications.
• Role-Based Security Model – Strengthens compliance and data protection in insurance workflows.
• Application & Data Backup System – Ensures business continuity in case of failures.
• Full Audit Trail – Helps insurers maintain transparency and regulatory compliance.
• These features are a common denominator of all enterprise-class insurance applications, which means you need to develop them regardless of the value they add to your insurance product.

With them ready to go, you can jump right into prototyping.

Best Openkoda Use Cases

Openkoda is built to address some of the biggest challenges in insurance software development, making it an ideal solution for companies looking to innovate, scale, and modernize their insurance operations.

For those focused on innovation, Openkoda simplifies the creation and launch of insurance products with built-in features for flexible pricing models, dynamic underwriting, and seamless policy customization.

The platform also supports the rapid development of new distribution channels, enabling insurance agents to embed their offerings into third-party platforms, e-commerce sites, and partner ecosystems with minimal integration effort.

Finally, Openkoda is excellent for companies looking to replace legacy systems. Its modular architecture and rich API integrations make it easy to connect with external and back-office systems, ensuring a smooth transition to new insurance processes without the risks and delays of full-scale system overhauls.

Your Bottom Line: Faster Deployment Without Compromising Quality

Traditional insurance software development is slow, expensive, and resource-intensive, making it difficult to adapt to market changes and customer expectations.

With Openkoda, insurers cut development time by up to 60% without sacrificing scalability, compliance, or performance.

Instead of building complex systems from scratch, they leverage a pre-configured, highly adaptable platform that accelerates product launches, simplifies integrations with existing insurance operations, and ensures future-proof flexibility.

Whether you’re developing innovative insurance products, optimizing claims management or policy management, expanding distribution channels, or modernizing legacy systems, Openkoda enables you to move faster, smarter, and more efficiently—without compromising on quality or compliance.