Go to ScienceSoft Global
Custom P2P Insurance Software
ScienceSoft combines 12 years of experience in insurance software development with proficiency in cloud, AI, big data, and blockchain to design and build robust peer-to-peer (P2P) insurance platforms.
P2P Insurance Software: The Essence
P2P insurance software is the backbone of the innovative social insurance model that enables individuals and micro businesses to join into risk-sharing pools, self-administer insurance coverage terms, and run collaborative claim resolution.
Also known as P2P insurance platforms, such solutions provide vast self-service options for end users to organize risk-pooling communities, manage pool contributions, and decide on claim approval.
Custom P2P insurance software automates underwriting, fund control and disbursement, claim settlement, and reinsurance workflows. When powered with AI and blockchain, the software can eliminate up to 90% of manual insurance tasks and provide advanced security and full traceability of P2P insurance transactions.
- Necessary integrations: CRM, accounting software, payment gateways, customer interaction channels, third-party data sources (internal systems of local credit rating bureaus, medical information bureaus, police administration, etc.; social networks).
- Implementation time: 9–15 months for a custom P2P insurance platform.
- Development costs: $200,000–$1,000,000+, depending on software complexity. Use our free calculator to estimate the cost for your case.
Why Build a Custom P2P Insurance Platform
|
|
The global P2P insurance market is anticipated to witness exponential growth by 2032. Key factors that drive the popularity of P2P insurance platforms among individuals and SMBs are the access to convenient, fast, and cost-effective insurance services, along with a high degree of control over policy terms and prices. With P2P insurance, policyholders can save up to 40% on premiums compared to traditional insurance. This creates momentum for P2P insurers to tap into the rapidly evolving market with a brand-new solution and quickly generate revenue. |
Key Features of P2P Insurance Software
ScienceSoft creates custom P2P insurance solutions with functionality tailored to the needs of each platform provider. Below, our consultants share a comprehensive list of features that form the core of an effective peer-to-peer insurtech platform.
General functionality
Customer onboarding
- Configurable forms for customer self-registration.
- AI-based extraction and validation of data provided in customer documents.
- KYC/AML verification for new customers.
- Automated customer pre-qualification against the preset requirements (minimal age, location, etc.).
- Rule-based approval of customer accounts.
Risk assessment
- AI-powered customer risk analysis based on the data available in customer profiles and public data sources:
- Credit history.
- Claim history.
- Health state and medical history.
- Driving behavior.
- Business income, assets, liabilities, and more.
- Customizable formulas for customer risk scoring.
- Assigning customer risk scores to the customers’ accounts to make the risk data visible to peers.
- Automated recalculation of customer risk scores as the new relevant data appears.
Peer and pool catalog
- Configurable catalogs of available peers and P2P insurance pools for new peers.
- Searching the fitting peers to form the pool based on the user-defined criteria: a peer’s risk score, location, age, business direction, etc.
- AI-based suggestions on the optimal insurance pools to join for new customers based on the analysis of a customer’s personal and risk profile.
- Calculating P2P insurance prices and the total cost of participating in various insurance pools.
Payments and fund pooling
- Automated billing for the pool members.
- Instant processing of pool participant payments via the connected payment gateways.
- Support for multiple payment methods (bank transfer, card, digital wallet, etc.) and payment currencies, including cryptocurrencies.
- Personalized reminders to pool participants about due payments.
- Automated accumulation of the received funds on the escrow account (a P2P insurer’s bank escrow account or a pool-specific escrow-type account in the e-wallet/crypto wallet).
- Rule-based payouts for valid claims.
- (optional) Blockchain-based processing of cross-border P2P insurance payments.
Security and compliance
- Permission-based access control.
- Multi-factor authentication, including biometric authentication (e.g., facial or fingerprint recognition).
- End-to-end audit trail of the platform user activities.
- AI-based fraud detection.
- Data encryption, including asymmetric encryption for blockchain P2P insurance.
- Scheduled deletion of customer data.
- Compliance with KYC/AML requirements, FIO, NAIC, CCPA, SOC1 and SOC2, PCI DSS, GDPR (for the EU), NYDFS (for New York), IA and SAMA (for the KSA), and other relevant global and regional regulations.
P2P insurer features
P2P insurance term management
- Setting and adjusting P2P insurance terms:
- Supported insurance types: homeowner insurance, car insurance, business liability insurance, etc.
- Min and max number of the P2P insurance pool participants.
- Pooled funds allocation: flat or percentage fees to cover claim expenses, reinsurance costs, platform service commission, etc.
- Coverage limits for claims paid from the pooled funds.
- Unused funds return: limits, frequency, payout options.
- AI-powered suggestions on the P2P insurance term optimization based on the analysis of demand, claim record, platform spend, etc.
Premium fund control and distribution
- Real-time monitoring of the escrow account balances, platform-wide premium payment and claim payout transactions.
- Auto deduction of the platform service fees out of the pooled premium funds.
- Scheduled and ad hoc transfer of excess premiums to the pool participants’ initial payment methods or user-defined accounts (to charity, startup funding, etc.).
- Automated export of transactional data to the accounting system.
Reinsurance management
- Centralized storage of reinsurance partners’ data: general business information, service scope, pricing details, etc.
- Reinsurance contract management.
- AI-based assignment of the best-fitting reinsurers to particular P2P insurance pools.
- Automated submission of claims that exceed the pool coverage limits for settlement to the relevant reinsurers.
- Real-time monitoring of the claim resolution progress (enabled via the integration with the reinsurer’s business systems).
- Tracking KPIs like the total volume of insurance deals, premiums written, claim costs, average deal value, revenue generated.
- Configurable dashboards providing granular view into P2P insurance variables.
- Scheduled and ad hoc reports on the selected metrics.
- AI-based forecasting of P2P insurance demand, financial gains, and expenses.
Customer features
Account management
- Customer self-registration, adding and updating account information: personal/business data, billing details, including tax IDs, payment method (bank account, credit card, digital wallet), etc.
- Adding links to the social network profiles.
- A full history of account activities.
- An AI-powered virtual assistant to help users resolve technical, transactional, and security issues.
Insurance pool administration
- Template-based creation of pool applications and their instant submission to the P2P insurer.
- Private (e.g., for family members or friends) and public pools.
- Collaborative setting of pool-specific requirements and terms: risk score thresholds to participate in the pool, user location, pool contribution terms, max loss coverage amounts, etc.
- AI-supported pool member pre-qualification and approval.
- Intelligent recommendations on the optimal personalized insurance premiums for each pool member based on the member’s risk score.
- (optional) Formalizing cash pool rules in the blockchain smart contracts to automate claim validation and payment and provide full traceability of the pool transactions.
P2P insurance activities
- Paying premiums via a selected payment method.
- Template-based claim filing and automated claim sending for validation to the pool members.
- Interactive dashboards with an overview of P2P insurance activities, pool’s escrow account balance, and transactions.
- Live messaging to streamline communication between the pool members and a P2P insurer.
Claim settlement
- Decision-making on claim approval or rejection:
- Collaborative decision-making based on the rules predefined by the pool members.
- AI-powered decision-making based on the analysis of claim-relevant data from all available sources.
- Automated consensus-based decision-making based on the rules specified in the P2P insurance smart contracts.
- Instant routing of the approved claims for payment.
- Automated submission of reinsurance requests for valid claims that exceed the preset limits to the P2P insurer.
Driving CSAT with P2P Insurance Platforms: Insights from Our Team
Seeking to Elevate Insurance Customer Digital Experience? Here’s Where You Should Start
Discover solutions to plan, analyze, and enhance customer experience in the insurance industry.
Six Digital Customer Experience Strategies Insurance Companies Must Prioritize in 2024
Learn the six surefire strategies to introduce top-notch CX with your P2P insurance platform.
Boosting Customer Experience in Health Insurance: Can You Escape AI?
Explore ways for health payers to bridge smooth digital CX, security, and compliance.
What makes ScienceSoft different
We achieve project success no matter what
ScienceSoft does not pass mere project administration off as project management, which, unfortunately, often happens on the market. We practice real project management, achieving project success for our clients no matter what.