Do you know why so many insurance companies are focusing on mobile apps? Today, people want everything at their fingertips—whether it is for buying a policy, filing a claim, or getting a quick quote.
Gone are the days of waiting on hold or dealing with piles of paperwork. With an insurance app, customers can manage everything easily in just a few taps, which makes the process fast and smooth.
But businesses or any other entrepreneur looking to develop an insurance app often comes across the question: How much does insurance app development cost that can meet customer needs and stay within budget?
The insurance app development cost in the UK depends on various factors, such as the type of insurance, the features, complexity, and more, which we will learn in this blog post.
In this blog, we will also learn everything from the benefits of building an insurance app for your business to ways to reduce development expenses. Let’s dive in!
Why Does Your Insurance Company Need a Mobile App?
A mobile app makes it simple for customers to manage their policies, file claims, and get help—all from their phones. An insurance app improves customer engagement, makes processes easier, and gives your company an edge.
Let’s look at the main reasons for the benefits of mobile apps for your insurance company.
1. Enhanced Customer Experience
Customers want quick and easy ways to manage their insurance policies. A mobile app gives them instant access to policy details, allowing users to renew policies, check coverage, and file claims in minutes.
By eliminating long wait times and paperwork, an insurance app enhances customer satisfaction and builds long-term trust.
2. Faster & More Efficient Claims Processing
One of the biggest issues for insurance customers is the long and complicated claims process. A mobile app allows users to upload photos, videos, and documents to support their claims, which speeds up claim approval times.
Customers can also track their claims in real time and get instant updates on their status, making the process clear and smooth.
Increased Customer Engagement & Retention
A mobile app helps insurance companies connect with customers better through personalised notifications, reminders for policy renewals, and AI-based policy suggestions.
These features keep customers informed and encourage them to stay loyal to the company, reducing their chances of leaving.
3. Cost Reduction & Operational Efficiency
Managing insurance policies manually requires more administrative work, which increases operational costs. A mobile app automates policy management, claims processing, and customer support tasks.
This reduces paperwork and the need for extensive customer service teams, making the business more efficient and lowering business expenses.
4. Competitive Advantage
As the UK insurance industry becomes more competitive, having a well-designed mobile app can make your business stand out. A simple and feature-packed app attracts customers who prefer using digital tools.
By offering a user-friendly and secure app, insurance companies can gain an edge in the market and grow their customer base.
Key Features of an Insurance App
Whether it is the features of an e-commerce, fintech, or healthcare app, they all need them to ensure the app functions well and meets user demands.
That is why an insurance app should also have key features that make it easy to use, secure, and engaging for customers. These features help the business run smoothly and give users a great experience.
Here are the key features every insurance app should include.
1. User Registration and Profile Management
The first essential feature of an insurance app is user registration and profile management. The first step in using an insurance app is creating an account.
A simple sign-up process allows users to register with their email, phone number, or social media accounts. Users can update their details, view policy info, and manage different insurance plans in one place.
The app should also have extra security, like multi-factor authentication (MFA), to keep accounts safe.
2. Digital Policy Management
An insurance app should allow users to view, update, and manage their policies easily. Users should be able to download documents, check payment details, and get reminders for renewals.
A simple dashboard showing all important policy information helps customers stay updated and reduces the need for customer support calls.
3. Claim Filing and Tracking
One of the most essential features of an insurance app is the ability to file and track claims digitally. The app should guide users through the claim process, allowing them to upload documents, photos, and videos easily.
Automatic tracking features update users on their claim status in real time, so they don’t need to keep checking or following up.
4. Chatbots and Customer Support
AI chatbots provide instant help by answering common questions and guiding users through policy selection, claims, and renewals. The app should offer live chat with human representatives for more complex issues to provide quick and personalised support.
5. Secure Payment Gateway Integration
Many insurance companies opt for payment gateway development when building their insurance app.
This is because secure payment gateway integration allows customers to pay their insurance premiums securely using multiple payment methods, like credit/debit cards, bank transfers, Apple Pay, Google Pay, and PayPal. A well-integrated system makes the process easy and stress-free.
6. Push Notifications
Another essential feature of any insurance app is the push notifications. Timely notifications keep users updated on policy changes, payment due dates, special offers, and claim progress. This feature helps keep customers engaged and ensures they don’t miss important deadlines.
7. Document Management & E-Sign Support
Users should be able to store and manage important documents, like ID proofs, medical reports, and claim files, in the app. This makes it easier to access documents and speeds up the claims process, enhancing user convenience.
Users can also digitally sign agreements because of the app’s e-sign support, which makes the process much faster.
Average Insurance App Development Cost in the UK
An insurance app development cost in the UK varies based on multiple factors, including the feature's complexity, the development approach, and the team’s expertise.
On average, developing an insurance app can cost anywhere from £25,000 to £250,000, depending on its functionalities and technology stack.
The cost is also influenced by factors such as UI/UX design, security compliance, integration with third-party services, and post-launch maintenance.
A basic insurance app with essential features such as user registration, policy management, claims filing, and in-app payments will cost less than an advanced insurance app with features like AI-driven risk assessment, blockchain-based data security, telematics for car insurance, and wearable integrations for health insurance.
The total app-making charges also depend on whether the app is built for a single platform (iOS or Android) or both (cross-platform development).
Native app development costs more due to separate coding for each platform, whereas cross-platform development is more cost-effective but may have some performance downsides.
The table below shows the estimated costs of the insurance app based on the app’s complexity.
Cost Breakdown of Insurance App Development in the UK
Building an insurance app in the UK involves many steps, each with its own costs. Each stage is important for its success, from initial research to deployment and maintenance. Here is a cost breakdown of the development of an insurance app.
1. Planning and Research
Cost: £5,000 - £15,000
The first step in developing an insurance app is planning and research. This includes understanding the target market, identifying competitors, and deciding on essential features, and ensuring the app complies with UK rules like the Financial Conduct Authority (FCA) and General Data Protection Regulation (GDPR).
Just like proper keyword research for SEO-friendly apps, proper research also helps avoid expensive mistakes later in development. The insurance app development cost in the UK can depend on whether you hire a consultant for market analysis and compliance checks.
2. UI/UX Design
Cost: £5,000 - £20,000
Another stage of the development process that affects the price is the UI/UX design. A well-designed app should be visually appealing, easy to use, and simple to navigate.
UI/UX design includes wireframing, creating prototypes, and designing the user interface to keep users engaged. The cost depends on the design’s complexity.
3. Frontend & Backend Development
Cost: £20,000 - £100,000+
Development is the most expensive part of building an app. It includes two main components:
Frontend Development: This involves designing the app’s interface, ensuring it is easy to use, and adding features like user authentication, policy management, and filing claims.
Backend Development: This focuses on building a strong backend system that keeps the app secure, manages user data, and integrates third-party services like payment gateways and fraud detection.
4. Testing and Quality Assurance
Cost: £5,000 - £20,000
Testing is important to ensure the app functions well, is secure, and provides an excellent user experience. This phase includes:
🔘Functional testing: Checking if features work as expected.
🔘Security testing: Ensuring the app is safe from data breaches.
🔘Performance testing: Testing to assess app speed.
🔘Usability testing: Ensuring it is easy for users to interact with the app.
The more complex the app, the more testing it needs, which can increase costs. Also, skipping testing can lead to bad reviews and legal issues.
Recommended Reads: Why is a Quality Assurance Tester Needed on a Software Development Team
5. Deployment and Maintenance
Cost: £5,000 - £20,000 per year
This stage takes place after the app is built and tested. Your app needs to be launched on platforms like the Google Play Store and Apple App Store. Deployment costs include store registration fees, cloud hosting, and setting up databases.
Once the app is live, it needs regular maintenance to fix bugs, add updates, improve security, and scale the app as user demand increases. App maintenance costs are usually around 10-20% of the total development cost each year, depending on how complex the app is.
Also Read: How Much Does it Cost to Put an App on the App Store?
Types of Insurance Apps and Their Costs
Insurance apps can be categorised based on the coverage type and the services they offer. The cost of developing each type can vary, depending on features, complexity, and third-party integrations.
Below are the main types of insurance apps and their estimated development costs in the UK.
1. Health Insurance Apps
Cost: £40,000 - £150,000
Health insurance apps help users manage their health plans, track medical expenses, and file claims online.
They often integrate with wearable devices and offer features like telemedicine, symptom checkers, and AI-based policy suggestions. More advanced apps may use blockchain to store medical records, which can increase development costs securely.
2. Car Insurance Apps
Cost: £50,000 - £200,000
Car insurance apps provide services like policy management, real-time claim filing, and roadside assistance.
Many apps include telematics-based pricing, where insurers track driving behaviour with GPS and sensors to offer personalised prices.
Adding telematics to the app requires advanced technology, making it more expensive to develop.
3. Life Insurance Apps
Cost: £50,000 - £180,000
Life insurance apps allow users to compare plans, calculate premiums, and manage policy documents.
They often include AI-driven risk assessment and financial planning tools. The cost to develop these apps increases when complex features like personalised policy recommendations are integrated.
4. Home Insurance Apps
Cost: £40,000 - £130,000
Home insurance apps allow users to insure their properties, calculate coverage, and file damage claims.
Advanced apps use AI to assess damage, allowing users to upload pictures of damages and provide repair cost estimates. Adding features like IoT devices for business (such as smart home security systems ) can increase an insurance app development cost in the UK.
5. Travel Insurance Apps
Cost: £30,000 - £120,000
Travel insurance apps provide coverage for medical emergencies, lost luggage, or trip cancellations.
They include features like real-time travel alerts, quick claims processing, and flight tracking, making these apps convenient. The cost depends on the level of automation and API integrations with travel services.
6. Pet Insurance Apps
Cost: £30,000 - £100,000
Pet insurance apps help users find coverage for vet bills, regular checkups, and emergencies. Some apps integrate with pet health tracking devices, which adds extra development costs. Features like AI-based pet health monitoring and instant claim processing can add to the development cost.
7. Business Insurance Apps
Cost: £60,000 - £250,000
Whether you have an insurance, fintech, banking, or car related business idea, Business insurance apps offer coverage for liability, property damage, and employee health.
These apps need complex algorithms for risk assessment, compliance management, and financial and legal database integration. The cost is higher because the app needs strong security features and compliance with industry regulations.
Hourly Rates for Insurance App Development in the UK
The insurance app development cost in the UK also depends on the development team's expertise, and they all have different hourly rates. These hourly rates vary based on the developer’s experience and specialisation.
1. Junior Developers
Cost: £40 - £60 per hour
Junior developers usually work on basic frontend tasks, fixing minor bugs, and improving features. They don’t have much experience in managing complex integrations or security, so they are better for small projects or prototype development.
2. Mid-Level Developers
Cost: £60 - £100 per hour
Mid-level app developers have experience with both frontend and backend development. They can integrate third-party APIs, work with databases, and handle more advanced backend functionalities.
They are a great choice for insurance app development that needs standard functionalities and doesn’t require complex AI-based automation.
3. Senior Developers
Cost: £100 - £150 per hour
Senior developers specialise in creating advanced software architecture, using blockchain, and adding AI features.
They are needed for complex insurance apps that require predictive analysis, telematics, and high-end security features. Their expertise ensures the app is built to scale and remain secure over time.
4. UI/UX Designers
Cost: £50 - £120 per hour
A well-designed insurance app enhances user experience, improves engagement, and boosts customer retention.
UI/UX designers create a well-designed UI/UX roadmap that focuses on making the app easy to use, visually appealing, and interactive. The more complex the design, the higher the cost.
Factors Affecting Insurance App Development Costs
Before investing in developing an insurance app, you must consider various factors. This is because the insurance development cost in the UK can vary based on the app’s complexity and the development team’s location.
Here are the primary factors that affect the costs of insurance app development.
1. App Complexity and Features
One of the main factors that affects the total app development cost is the app’s complexity and features. The more advanced features an insurance app has, the higher the cost.
A simple insurance app with policy viewing and claims submission will cost less than one with features like AI chatbots, fraud detection, personalised recommendations, and third-party integrations.
Features like real-time claim tracking, document scanning, and blockchain security can also increase development costs.
2. Platform Choice (iOS, Android, or Both)
Choosing whether to develop the app for iOS, Android, or both affects the insurance app development cost in the UK. Native apps, built separately for Android and iOS, offer better performance but require more resources, which can increase costs.
Cross-platform development using frameworks like Flutter or React Native is cost-effective but may have performance issues for more complex apps.
3. UI/UX Design Complexity
A simple, user-friendly design will cost less than a complex app with custom animations, multiple themes, and intuitive user features.
The design should be easy to use and look visually appealing to improve the customer experience, which may require extra design resources and testing.
4. Development Team and Location
The cost of hiring a development team depends on their location and expertise. Hiring developers in the UK is more costly than outsourcing to places like Eastern Europe, India, or Southeast Asia.
However, local developers can better follow UK regulations and ensure easy communication.
5. Compliance and Security Requirements
Insurance apps deal with sensitive customer data, so they must comply with strict security and regulatory requirements like GDPR, FCA, and ISO 27001 standards.
Implementing security features like secure authentication, end-to-end encryption, fraud detection, and data protection standards adds to the total development cost.
Recommended Reads: What is the Future of Cyber Security? Latest Trends, Threats, and Tips to Stay Ahead
6. Third-Party Integrations
Many insurance apps require integration with third-party services to enhance their functionality. These include payment gateway integration (like Stripe, PayPal, or Apple Pay), customer verification tools, GPS tracking for roadside help, cloud storage, and AI for fraud detection.
Each of these connections adds to the development cost. Some services also charge monthly or yearly fees, increasing long-term costs.
7. Maintenance and Future Updates
After your insurance app is launched, it will require regular maintenance, updates, and security fixes. This ensures the app works well, is updated with the latest operating system, and is protected from cyber threats.
An ongoing cost can add 10-20% of the total development cost per year. Also, customer feedback may require adding new features or improvements, which will cost more.
Best Strategies to Reduce Insurance App Development Costs
If you have any new or trendy business ideas related to insurance apps and want to get them built at a lower cost, you may want to know how to do it.
Reducing costs without compromising quality is a key goal for businesses investing in insurance app development. Here are some strategies to implement to reduce development costs.
1. Prioritise Essential Features First
Instead of building a fully-features app from the start, focus on Minimum Viable Product (MVP) development. Start with core features like policy management and claims filing, then gradually add advanced features based on user feedback. This approach helps plan the budget more efficiently.
2. Opt for Cross-Platform Development
Another effective way to reduce the insurance app development cost in the UK is opting for cross-platform development.
Developing a single cross-platform app instead of separate iOS and Android versions can help reduce costs.
Frameworks like React Native and Flutter allow developers to write code once and launch it on multiple platforms, saving both time and resources.
3. Use Pre-Built APIs and Third-Party Services
Instead of developing every feature from scratch, utilise pre-built APIs for payment processing, authentication, chatbots, and analytics. This reduces development time and ensures compatibility with industry standards. This approach helps save money on insurance app development.
4. Outsource Development to Cost-Effective Regions
You can outsource to developers in Eastern Eastern Europe, India, or Southeast Asia to reduce the total development cost while maintaining high-quality development.
A hybrid approach, where essential components are developed locally while other tasks are outsourced, is also a cost-effective solution.
5. Choose Cloud-Based Solutions
Instead of investing in expensive on-premises servers, businesses can use cloud services like AWS, Google Cloud, or Microsoft Azure.
Cloud services are scalable, secure, and cost-effective, allowing businesses to pay only for the resources they use. Cloud storage also improves data security and helps with disaster recovery, lowering long-term maintenance costs.
6. Regularly Monitor and Optimise the App
Post-launch maintenance can become costly if issues are not detected early. However, implementing automated testing, performance monitoring, and analytics tracking can help identify and fix problems efficiently, reducing future maintenance expenses.
Businesses should gather user feedback to improve the app’s features and ensure development resources are used efficiently.
How Can Arramton Help You Build the Best Insurance App?
Everyone keeps searching for the best app development companies but often can’t find the best one because they worry about their reliability and work quality.
However, when it comes to choosing the right development partner who can build a successful insurance app, Arramton is an excellent choice.
They specialise in creating custom insurance apps with a focus on the unique needs of the industry, such as policy management and claims processing, while ensuring compliance with UK regulations like GDPR and FCA.
Using the latest technologies, including AI, blockchain, and cloud solutions, Arramton offers secure, scalable, and cost-effective development options. Their user-friendly designs improve customer satisfaction, and their focus on security ensures that your app is safe from cyber threats.
With a proven track record and an agile approach, Arramton Infotech delivers apps quickly, with ongoing support and the ability to scale as your business grows.
The Bottom Line
This blog explored an insurance app development cost in the UK, factors affecting the total cost, features of an insurance app, and why building an insurance app benefits insurance companies.
The development cost of an insurance app depends on the app's complexity, platform choice, UI/UX design, and development team location.
Businesses can optimise their budget while ensuring a high-quality product by using cost-effective strategies such as developing an MVP first, utilising cross-platform development, and outsourcing to skilled developers.
If you are looking for the best development partner to build a secure and scalable insurance app, Arramton is here to help. Contact Arramton today to discuss your project and start building your successful insurance app with us!
Frequently Asked Questions
Q1 How much does it cost to develop an insurance app in the UK?
Ans The total cost of developing an insurance app in the UK can range from £30,000 - £250,000+, depending on various factors such as features, complexity, development team location, and security requirements. Also, there are many ways you can implement if you want to reduce development costs. Some of the best ways are mentioned above.
Q2 How long does it take to develop an insurance app in the UK?
Ans The development timeline for an insurance app depends on the complexity and features you want to include. A basic app with essential functionalities can take 3 to 6 months, while a high-end insurance app can take 12 months or more. The more advanced the app, the longer the development time.
Q3 What is the average cost of an insurance app with AI chatbots?
Ans If you add AI-powered chatbots to an insurance app, it will lead to increased development time and cost. A basic chatbot for FAQs and customer support may add £10,000 - £20,000 to the total cost. However, an advanced AI chatbot that can assist with policy recommendations, claims processing, and fraud detection can increase the total development cost to £80,000 - £150,000 or more.
Q4 Do I need a license to launch an insurance app in the UK?
Ans Yes, if your app involves selling insurance policies, processing claims, or handling financial transactions, you must comply with UK regulatory requirements. The Financial Conduct Authority (FCA) regulates insurance businesses in the UK, and failing to obtain the necessary licenses can result in fines or legal action. Also, you need to ensure GDPR compliance to protect user data.
Q5 How can I ensure my insurance app is secure?
Ans You can ensure your insurance app is secure by:
🔘Use end-to-end encryption to keep user data safe from cyber threats.
🔘Add multi-factor authentication (MFA) to stop unauthorised access.
🔘Regularly check for security issues by conducting security audits and penetration testing.
🔘Follow GDPR and FCA rules to maintain legal compliance.
🔘Use blockchain (if needed) to prevent fraud and secure transactions.
A well-secured insurance app builds trust with customers and helps prevent fraud and cyberattacks, which are becoming more frequent in the financial sector.
Q6 How much does it cost to maintain an insurance app after launch?
Ans Maintenance costs can range between £5,000 - £20,000 per year, depending on the app’s complexity. If your app includes AI automation, telematics, or blockchain, maintenance charges can increase due to continuous updates and security compliance.
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