In the rapidly evolving landscape of India’s insurance sector, the integration of Artificial Intelligence (AI) and automation for Insurance businesses is not merely a trend but a strategic imperative. As we navigate through 2025, the demand for bespoke software solutions tailored to the unique challenges and regulatory frameworks of the Indian market has never been more pronounced. At ProfitMatics, we are at the forefront of this transformation, delivering custom applications that enhance efficiency, ensure compliance, and elevate customer experiences in the fintech domain. Considering the competition among Insurance Brokers, building custom for the business is the best way to scale and digitalise. Sharing below the trends and use cases of custom Insurance software, for your journey with Fintech. The Imperative for Custom Insurance Software in India If you have been in the Insurance Industry since a decade or so, you probably are done with the limitations and issues that come packed with the third party SaaS solutions, such as agent management softwares, CRMs and Underwriting tools. Generic software often falls short in addressing the specific needs of Indian insurance agents and companies. Here are some you might feel relatable to. Common Limitations of Off-the-Shelf Insurance Software Minimal Branding or Personalization OptionsAgents are often stuck with templated interfaces and branding, missing opportunities to build a strong digital presence or offer tailored client experiences. Rigid WorkflowsPre-designed platforms often come with fixed processes that don’t adapt to the varied needs of Indian insurance agents dealing with diverse client portfolios and policy types. Limited Compliance FlexibilityKeeping up with IRDAI updates and state-specific regulations can be difficult when platforms lack customizable compliance modules. Generic Lead ManagementMany third-party systems provide a one-size-fits-all CRM that doesn’t account for the specific funnel stages or client behavior typical in the Indian insurance landscape. Poor Localization SupportMultilingual support, regional document formats, and locally relevant reporting features are often missing or poorly implemented. Difficult to Scale with GrowthAs insurance advisors grow from solo agents to teams or firms, many platforms fail to scale with new workflows, hierarchical roles, or custom access controls. Data Silos and Limited IntegrationsGeneric platforms may not integrate seamlessly with underwriting engines, KYC providers, WhatsApp automation, or accounting software used in India—leading to siloed data and inefficiencies. Custom solutions offer several advantages: First would be of course, having a software the way you want. Your workflow, your business operations, your strategies and your team management, all customised, just the way your vision stands. Apart from the “my own” feeling, it also helps with: Regulatory Compliance: India’s insurance regulations are intricate and frequently updated. Custom software can be designed to adapt swiftly to these changes, ensuring ongoing compliance. Localized Features: Custom applications can incorporate regional languages, local taxation rules, and specific underwriting guidelines, enhancing usability and relevance. Integration Capabilities: Tailored solutions can seamlessly integrate with existing systems, such as Customer Relationship Management (CRM) tools, policy management systems, and third-party APIs, streamlining operations. Automation and Data Handling for Richer Analytics: Purpose-built platforms can automate repetitive workflows like premium reminders, renewals, or document verification while capturing valuable data at every touchpoint. This data can then be transformed into actionable insights through embedded analytics and dashboards—supporting smarter decisions and personalized customer engagement. Scalability with Your Business Model: Custom software evolves with your advisory business—from a solo operation to a large agency—supporting new workflows, custom user roles, or additional branches without forcing major system overhauls. Enhanced Security and Data Ownership: With a custom solution, sensitive customer data is stored in secure, private infrastructure—not shared with third-party vendors—ensuring full control over data privacy, audit trails, and user access. Still considering if it’s the right choice? Take a look at what the rest of industry demands. According to a report by The Business Research Company, the global custom software development market is projected to grow from $44.52 billion in 2024 to $54.26 billion in 2025, at a CAGR of 21.9%, highlighting the increasing demand for bespoke solutions. The Business Research Company Got an Idea? Let’s brainstorm the solution together! Custom Insurance App Development: Meeting the Digital Demand With the proliferation of smartphones and increased internet penetration, majority of your audience has shifted to the small digital devices that carry the world. There’s a growing demand for mobile insurance applications that offer: User-Friendly Interfaces: Custom apps can be designed with intuitive interfaces that cater to the tech-savvy Indian demographic. Real-Time Policy Management: Policyholders can view, update, and manage their policies on-the-go. Instant Claim Processing: Integration of AI allows for real-time claim assessments and approvals, enhancing customer satisfaction. AI Voice Agents for customer support: Voice Agents are the new trend when it comes to customer support. Having data backed agents can drastically reduce the waiting time for your customer, solving the FAQs as well as personal queries in seconds, on a call that sounds humane and real. AI Recommendation System: With custom software, AI algorithms can be trained on your specific customer profiles, policy types, and historical data to deliver hyper-personalized product recommendations. This not only boosts policy conversions but also helps agents upsell or cross-sell based on real-time customer behavior, risk appetite, and financial goals—something generic platforms struggle to fine-tune. For understanding the trends in different Insurance Domains, read this article backed with stats and funded insurtechs. The Indian insurance software market size reached USD 146.40 million in 2024 and is expected to reach USD 275.83 million by 2033, exhibiting a CAGR of 6.75% from 2025 to 2033, driven by increasing digitalization and demand for personalized customer experiences. IMARC For more such trends of Insurance Industry, read this dedicated blog that explores the roadmap to Digitalisation for Insurance Brokers. The Impact of Custom AI & Automation on India’s Insurance Sector The integration of AI and automation in custom software solutions has led to measurable improvements: The global AI for insurance market is projected to grow from $7.71 billion in 2024 to $10.27 billion in 2025, at a CAGR of 33.3%, underscoring the transformative potential of AI in the insurance industry. The Business Research Company Future
