Software Testing – Insurance Domain Application Testing with Sample Test Cases

Insurance Domain Application Testing is a software testing process to test the insurance application to check if the designed insurance application meets the required customer’s expectations by ensuring the quality, performance, and durability requirements of the application. 

The following topics of insurance domain application testing will be discussed here:

1. What is Domain in Testing?
2. Why does Insurance Domain Knowledge Matter?
3. What is Insurance?
4. What is Premium? 
5. Testing Required in Different Process Areas of Insurance
6. What to Test in Insurance?
7. Sample Test Case for Insurance Application Testing

Let’s start discussing each of these topics in detail. 

What is Domain in Testing?

Domain in software testing refers to the area of the application under test. It is the combination of all the features and functions of the application that need to be tested. The domain can be divided into sub-domains, each of which can be further divided into smaller sub-domains.
Testing insurance domain applications typically involve verifying that the application correctly calculates premiums and coverage amounts while correctly handling customer data. Insurance domain applications may also need to be tested for compliance with industry regulations.

Why Does Insurance Domain Knowledge Matter?

Insurance domain knowledge help businesses identify, quantify, and manage risk exposure. They also help businesses make informed decisions about how to protect themselves from potential losses. Insurance domain applications can be used to manage various risks, including property damage, liability, workers’ compensation, and product liability.

• Testing insurance domain knowledge helps identify any potential errors or issues that could impact the policyholders.
• It also helps to reduce the training time.
• Insurance domain knowledge helps to get a better idea of the UI features and backend processing.
• It helps to identify the areas where the application could be more user-friendly.
• It helps to understand the technical concepts in the domain.

When it comes to insurance, domain knowledge is critical to assess risk and make sound decisions about coverage accurately. Without a deep understanding of how insurance works, it would be very difficult to properly evaluate policies and ensure that they meet the customer’s needs.

What is Insurance?

Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified damage, loss, illness, or death in return for payment of a specified premium. The company or person who purchases the policy is known as the Insured and the firm that provides the coverage is known as Insurer.

There are many different types of insurance domain applications, but they all have one goal in common to help manage risk. Insurance domain applications are typically classified as:

• Personal insurance: This type of insurance covers individuals and families.
• Commercial insurance: This category of insurance covers businesses.

Insurance domain applications can also be divided into:

• Life insurance: This covers death benefits and often includes annuities.
• Health insurance: This type of insurance covers medical expenses and often includes long-term care insurance.
• Property/casualty: This insurance covers damage to property and liability for accidents and injuries.

What is Premium?

Premium is the price paid for insurance coverage. It means the amount that needs to be paid for the contract of insurance. Premiums for most insurance policies are calculated based on several factors unique to the individual or business being insured. These factors can include:

• Type of coverage is purchased.
• Amount of coverage.
• Deductible.
• The location where the policy will be in force.
• Frequency of claims.
• The severity of claims.

Testing Required in Different Process Areas of Insurance

Testing is required in all areas of insurance to ensure that the products and services provided by insurers are effective and meet the needs of customers. Testing is used to assess risks, develop new products and services, and monitor and improve existing ones.

There are different types of testing that are used in different process areas of insurance. For example, actuarial testing is used to assess the risk of an insurance policy, while product testing is used to assess the effectiveness of an insurance product. Underwriting testing is used to assess the risk of an insurance policy, while claims testing is used to assess the effectiveness of an insurance claim.

Below are some of the process areas in insurance cooperation that require testing:

• Policy Administration Systems.
• Distribution Management Systems.
• Investment Management Systems.
• Claim Management Systems.
• Risk Management Solutions.
• Third-party Administration Systems.
• Regulatory and Compliance.
• Actuarial Systems (Valuation & Pricing).

What to Test in Insurance?

There are a few key areas that should be tested in insurance:

1. Claims process: This is the most important aspect of insurance and should be tested thoroughly to ensure that it is fair, efficient, and accurate.

• Testing claims lifecycle
• Testing claims accounting
• Testing claims third-party messaging

2. Coverage: This includes ensuring the insurance policy covers the risks it is supposed to cover. For example, if a policy is supposed to cover fire damage, then the coverage should be tested to ensure that it would pay out in the event of a fire.

• Testing coverage policy.
• Testing coverage lifecycle.

3. Customer service: This is another important aspect of insurance, and you should make sure that the company you are working with is responsive, helpful, and professional.

• Testing call routing and assignment.
• Testing security and access.
• Testing reflexive questions.
• Testing IVR integration.

4. Exclusions: It is just as important to know what is not covered by an insurance policy as it is to know what is covered. Exclusions can vary widely from policy to policy, so it is important to read the fine print and make sure that any potential risks are covered.

5. Limits: Most insurance policies have limits on how much they will pay out in the event of a claim. These limits can be per-incident, per policy, or per year. It is important to make sure that the limits are adequate to cover the risks involved.

6. Deductibles: Most insurance policies also have deductibles, which are the amount of money that the policyholder must pay out-of-pocket before the insurance company will pay a claim. Deductibles can vary widely, so it is important to choose a policy with a deductible that is affordable.

7. Policy Serving: It is important to test the policy lifecycle, policy lapse, and re-installment, test premium due alerts, and test financial and non-financial policy changes. 

Sample Test Case for Insurance Application Testing

The steps to be followed are:

• Testing the application’s ability to accurately calculate premiums based on the information provided by the user.
• To test the application’s claims processing functionality to ensure that claims are processed correctly and in a timely manner.
• To test the application’s customer service functionality to ensure that customer inquiries are handled properly and in a timely manner.

1. Testing the functionality of an insurance quote calculator:  This test case would test the functionality of an insurance quote calculator to ensure that it correctly calculates premiums based on the inputted information. There are various ways to test the functionality of an insurance quote calculator. 

• One way would be to manually input different values into the calculator and compare the results to see if they are accurate. 
• Another way would be to create a test script that inputs a range of values into the calculator and then compares the results to expected values.

2. Testing the accuracy of an insurance company’s claims processing: This test case would test the accuracy of an insurance company’s claims by processing, to ensure claims are processed correctly and that payments are made to the correct policyholders. There are many ways to test the accuracy of an insurance company’s claims processing. 

• One way would be to create a test case that includes a variety of different types of claims (e.g. medical, auto, homeowner’s, etc.) and submits them to the company for processing. 
• The test case should include both simple and complex claims, as well as claims that would be considered “outliers” (e.g., very high-value claims, claims with a large number of line items, etc.). 
• The results of the test case should be compared against the company’s stated accuracy rate to see if there is a discrepancy. 
• Other ways to test the accuracy of an insurance company’s claims processing include submitting duplicate claims, submitting claims with invalid data, and submitting claims for services that were never rendered. 
• The results of these test cases should also be compared against the company’s stated accuracy rate to identify any discrepancies.

3. Testing the customer service of an insurance company: This test case would test the customer service of an insurance company to ensure customer inquiries are handled promptly and effectively. There are many different ways to test customer service for an insurance company. 

• One way would be to create a customer profile and then submit a claim. 
• Another way would be to call the customer service number and ask a series of questions. 
• Another way would be to go through the process of buying a policy and see how the customer service team handles any questions or problems.

4. Testing the billing and payment process of an insurance company: This test case would test the billing and payment process of an insurance company, to ensure that bills are generated correctly and payments are processed in a timely manner. 

• The billing and payment process of an insurance company can be tested, by creating test scenarios that cover all of the different types of insurance domain applications. 
• For each test scenario, the tester would need to input different types of data to test the different functions of the billing and payment process.

5. Testing the website of an insurance company: This test case would test an insurance company’s website to ensure that it is easy to navigate and that all information is displayed correctly.

The steps followed to test the website of an insurance company are:

1. Policy creation: This test case is used to test the functionality of creating a new insurance policy.
2. Policy retrieval: This test case is used to test the functionality of retrieving an insurance policy.
3. Policy cancellation: This test case is used to test the functionality of canceling an insurance policy.
4. Claim filing: This test case is used to test the functionality of filing an insurance claim.
5. Claim status check: This test case is used to test the functionality of checking the status of an insurance claim.