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Testing Insurance Domain Applications with Sample Test Cases
Insaurance Domain testing
Domain Testing for Insurance is a type of software testing that is used to test insurance applications. Prior to deployment, insurance domain testing ensures that the intended insurance application fulfills the customer's expectations by guaranteeing quality, performance, durability, and consistency.
In order to conduct their business, insurance companies rely extensively on software. Software systems assist them in dealing with a variety of insurance activities such as establishing standard policy forms, performing billing processes, storing client data, providing high-quality customer care, and coordinating between branches, among others.
What Is the Importance of Insurance Domain Knowledge?
Domain expertise is vital for testing any software product, and it comes with its own set of advantages, such as
It reduces the training time.
It helps in quick defect tracking
It gives a good idea of UI features and back-end processing
It gives good hold workflow, business process, and rule
It helps to understand easily the technical technology
In testing, what is a domain?
The domain is the industry for which the software testing project is being developed. This word is frequently used while discussing software projects or development. Insurance domains, banking domains, retail domains, health care domains, and so forth.
Typically, domain expert assistance is requested when building any specialized domain project. Domain experts are experts in their field, and they may know everything there is to know about a product or application.
What is the definition of insurance? Insurance Types
The equitable transfer of the risk of a loss from one entity to another in exchange for money is characterized as insurance. The person or company who purchases the policy is known as the INSURED, while the insurance firm that provides the coverage is known as the INSURER.
Insurance policies are typically divided into two types, with insurers purchasing policies based on their needs and budget.
- Life insurance (Long Term)
- Non-life Insurance (Short Term)
Other types of insurance, on the other hand, fall under these categories.
- Unemployment benefits
- Social Security
- Compensation for Employees
What exactly is Premium? How is Premium determined?
The amount to be charged for a specific quantity of insurance coverage or policy purchased by the insured is known as a premium.
The premium for the insurance is calculated based on two elements.
- The frequency with which claims are made
- The Seriousness of the Claims (Cost of each claim)
We'll look at how the insurance system works, for example, assume that an insurance company covers all of the homes in a community.
Home Insurance Amount
- Total number of the house in village = 1000
- Value of each house = Rupees 800
- Contribution of each house owner as premium = Rupees 8
- Total Premium Collected = Rupees 8000
It has calculated that in the event of a fire, a maximum of 10 houses will be burned, for which it must compensate.
So, in the event of a fire, it will have to pay Rupees 800 to each of the ten houses, totaling Rupees 8000, which is equivalent to the premium is collected.
The risk of ten house owners is distributed across 1000 house owners in the village, lowering the load on each one of them.
If there is no fire in a given year, the entire sum goes to the insurer's profit, but if more than ten dwellings burn down, the insurer will suffer a loss.
Testing is essential in a variety of insurance processes
Testing can help to reduce the risk of business disruption during and after software deployment. An insurance corporation has numerous sections that require testing.
- Policy Administration Systems
- Claim Management Systems
- Distribution Management Systems
- Investment Management Systems
- Third-party Administration Systems
- Risk Management Solutions
- Regulatory and Compliance
- Actuarial Systems (Valuation & Pricing)
In terms of insurance, what should be tested?
The insurance industry is made up of a web of small businesses that process claims either directly or indirectly. Each of these units must be thoroughly tested before being synced together to produce the required outcome for an insurance firm to run smoothly. The tests include the following −
- Call Center
- IVR Integration testing
- Call routing and assignment
- Security and access
- Reflexive Questions
- Policy Serving
- Policy life cycle testing
- Financial and Non-financial policy changes
- Policy lapse and Re-instatement
- Policy aging-run cycles
- Premium due alerts
- Valuation of NPV/NAV
- Claims
- Claims triage and assignment
- Testing claims life cycle
- Claims accounting/reserving
- Third-party EDI/messaging
- Direct channel
- Mobile access
- Cross-browser/cross-platform accessibility
- Application performance
- Usability of application
- Reports/BI
- Behaving to regulatory requirements
- Generate quality data for reporting
- Create bulk data for roll-up reports
- testing formula-based fields in reports
- Underwriting
- Underwriting quality
- Manual and Straight through processing
- Complex business rules
- Rating efficiency
- Requirements Management (Vendor Interfacing)
- Integration
- Data integration
- Complex interface integration
- Source/Destination formats
- Production like interface
- Web service pull/push efficiency
- New Business
- Validate rates-factor combinations
- Batch job schedules and runs
- Commissioning calculations settlements
- Quick and detailed quote
- Benefit illustration
- Benefit summary validation
- Quick and detailed quote
Sample Test Cases for Insurance Applications Testing
Validate the claims.
Ascertain that a claim can be made for both the maximum and minimum payment.
Ensure that data is correctly delivered to all subsystems, including accounts and reporting.
Verify that claims can be processed through all channels, such as web, mobile, and phone calls. 5 Verify that premium rates are calculated accurately and with 100 percent coverage.
Double-check that the dividend and paid-up values are calculated correctly using the methodology.
Double-check that surrender values are computed in accordance with the policy's requirements.
Double-check fiduciary information and bookkeeping standards.
Experiment with complex policy lapse and resurrection situations.
Determine the non-forfeiture value under various scenarios.
Policy Termination Test Scenarios
Confirm that the general ledger account behaves in the same way as the subsidiary ledger account when reconciling.
Valuation test calculation of net liability
Scenarios in which extended term insurance might be put to the test
Verify the policy for a non-forfeiture option
Verify that the terms of various insurance products act as intended
Check the premium value according to the product plan.
Put an automatic messaging system to the test in order to notify customers about new products.
Validate all user data as it moves through the workflow, triggering warnings, compliance, notification, and other workflow events.
Verify that the insurance document template supports MS-Word as a document format.
Test the system for automatically producing invoices and sending them to customers via e-mail.
Tips for Putting Your Insurance Domain App Through Its Paces
Application Roles and Permissions:
Consider the following roles and responsibilities; if any of these roles/responsibilities are incorrect in production, the insurance firm will be in serious trouble.
An insurance agent submits a customer's application for insurance coverage.
The risk is assessed by the underwriter, who then determines whether to approve or reject the application.
The policy is prepared based on the benefits or plan desired by the customer once the risk and application have been accepted. The insurance company's software program is used to create the policy.
Information Interface
When testing an insurance application, make sure the data is updated appropriately on the front end and successfully stored in the back-end system or database. In addition, the database's saved information is retrieved without error on the front end.
The Numbers Factor
Insurance is a numbers game, and many insurance corporations are careful with numbers.
A tiny difference in the premium might have a significant impact on the overall result. In insurance application testing, it is critical to examine all decimal points and do suitable mathematical calculations.
Date Factor
In the insurance app, dates are also highly important.
Test an insurance application from beginning to end
When testing an insurance application, make sure to verify the following points −
The customer accepts the quotes that have been generated for them.
With an appropriate plan, a Policy Number is generated.
The Policy Admin System keeps track of all personal information as well as policy data.
The respective policy covers members and their dependents.
The system generates the required commission.
Through the front-end application, brokers must be able to see their customers' information.
Customers must be able to access and edit their personal information via an online portal.
Consider the Business
Gain a thorough understanding of the insurance industry and thoroughly test the end-to-end flow. To find the flaws, you must push yourself beyond your comfort zone and think "beyond the box."
Summary
Any insurance company's top priority is to process insurance policies on time and manage client data. Their total reliance on a software solution to handle claims and consumers necessitates a precise and accurate software solution. This tutorial depicts some of the testing methods and scenarios that take into account all of the important parts of an insurance company's requirements.
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