Building a Business Case for Test Automation in Insurance industry

Insurance companies face unique challenges in delivering reliable software quickly. Policy updates, claims processing, and regulatory compliance all demand precision and speed. Manual testing alone can create delays, introduce errors, and increase operational risk.

That's where test automation for insurance industry comes in.

Repetitive regression tests that previously take up so much time can easily be automated. Automation also strengthens compliance controls and accelerates time-to-market for new products.

In this article, we'll explore:

• Why manual testing is costly and risky in insurance software
• How automation supports compliance and risk management
• The measurable ROI of implementing test automation
• Real-world case studies in insurance apps
• How to build a compelling business case for executives
• Key factors in choosing the right automation tools for regulated environments

Whether you are responsible for qa in insurance apps or evaluating compliance testing automation, this guide will help you understand why automation is no longer optional and it’s essential for efficient, reliable, and compliant insurance software.

📚Read next: How to Scale QA in Insurance Enterprises

The cost of manual testing in insurance

Manual testing in insurance apps requires significant time and effort.

💡 Each release, whether a new policy or a pricing update, triggers regression cycles that can last weeks. Industry data confirms that regression cycles in financial and insurance software typically take two to six weeks. During this period, launches are delayed and teams must work long hours to validate existing features.

Human error is another concern. Compliance-heavy workflows, such as claims processing or underwriting checks, depend on consistent execution.

💡When tests are performed manually, the risk of oversight increases and auditors require extra verification steps. Capgemini’s World Quality Report notes that manual testing increases the risk of human error and non-compliance in regulated industries.

Imagine a claims processing system. Each release, QA teams spend 2 to 3 weeks re-running regression tests. They check policy rules, payment calculations, and claim approvals. While testers focus carefully, the process demands extensive coordination and repeated manual effort.

• Time delays: Manual regression testing slows product releases.
• High effort: QA teams dedicate days or weeks to re-run existing test cases.
• Compliance exposure: Human mistakes can affect audit readiness and regulatory reporting.

These challenges show why test automation for insurance industry is increasingly critical. Automated workflows reduce manual effort, accelerate regression cycles, and maintain consistent execution for compliance.

Investing in automation allows teams to focus on strategic testing, enhance efficiency, and reduce operational risk in insurance software QA processes.

📊 Explore further: How to Calculate Test Automation ROI

Compliance and risk management through automation

Automation transforms compliance in insurance software. By creating automated audit trails, insurers can quickly demonstrate adherence to regulations. Each change is tracked, logged, and easily retrievable for audits or inspections.

Automated workflows enforce consistency across claims, underwriting, and policy management systems. Each process follows the same steps every time, which reduces errors and improves confidence in operational quality.

💡The cost of non-compliance is significant. Fines, legal fees, and reputational impacts can affect the business and customer trust. Research shows that the cost of non-compliance averages 2.7 times the cost of maintaining compliance.

Fines, legal fees, and reputational impacts can affect the business and customer trust. Automation acts as “compliance insurance,” helping teams maintain continuous regulatory readiness.

• Audit efficiency: Automated logs make inspections faster and more accurate.
• Process consistency: Workflow automation ensures uniform execution across insurance apps.
• Risk reduction: Automation lowers exposure to operational and regulatory issues.

By integrating compliance testing automation into QA in insurance apps, teams can shift from reactive to proactive risk management. Automation provides predictable outcomes, supports faster releases, and strengthens trust with regulators and customers.

🔒 Learn more: How to Scale QA in Insurance Enterprises

The ROI of test automation for insurers

Implementing test automation for insurance industry delivers measurable business value. Automated testing shortens regression cycles, allowing new products and policies to reach customers faster. Teams can release updates confidently without waiting weeks for manual verification.

💡Compliance preparation becomes more efficient. Automation with modern regulatory technology (RegTech) streamlines compliance processes and significantly shortens audit preparation and reporting cycles.

Automation reduces the time needed to demonstrate regulatory adherence from weeks to just a few days. Audit readiness becomes predictable, supporting faster business decisions and reducing operational bottlenecks.

QA efficiency improves as teams do more with the same headcount. Repetitive checks run automatically, freeing testers to focus on high-value areas such as edge-case scenarios and exploratory testing. The team maintains coverage without expanding resources.

We can quantify the impact using a simple formula:

💡Global survey data show organizations adopting test automation achieve up to 40 % faster testing cycles, feeding directly into ROI.

By measuring ROI in terms of time saved, compliance risk avoided, and efficiency gains, executives can see the financial and operational benefits clearly. Integrating automation into insurance software QA processes aligns QA efforts with strategic business goals and maximizes return on investment.

📈 See how to measure: How to Calculate Test Automation ROI

Case Study: Katalon-Driven Efficiency in Insurance QA

Insurance providers around the world are using Katalon to shorten release cycles and strengthen compliance without expanding QA headcount.

• Specialist Insurance Provider (Guidewire-based) – By automating policy and claims testing with Katalon, this insurer tripled its testing capacity and moved from limited monthly regression runs to over 100 scenarios per product per release. Teams now deliver frequent product updates with confidence and maintain audit-ready evidence at every step.
• Saga Insurance (UK) – Saga’s QA team adopted Katalon’s low-code platform to remove the need for deep coding skills. The result: significantly shorter regression cycles and reduced overtime, while maintaining strict compliance controls (Katalon Saga Case Study).

Together, these examples show how insurers can reduce manual effort, accelerate releases, and strengthen compliance, which are key proof points for any business case to invest in test automation.

🏆 Read the full story: Saga Insurance Case Study

How to build a business case for automation in insurance

Building a compelling business case starts with identifying key pain points:

• Compliance costs
• Manual testing delays
• Operational risk

These create measurable impacts on the business. Highlighting these areas helps executives understand the value of automation.

Next, map the benefits of test automation for insurance industry to tangible business outcomes:

• Fewer fines: automation enforces regulatory standards and reduces audit risk
• Faster product launches: regression cycles and repetitive testing are minimized
• Higher customer trust: consistent performance and accuracy strengthen relationships

Finally, build the ROI story in terms that resonate with the CFO and board. Quantify time saved, compliance risk avoided, and efficiency gains. Link these figures to revenue growth, operational savings, and reduced risk exposure.

This approach aligns insurance software QA challenges with strategic business objectives and demonstrates the financial impact of automation.

💼 Next read: How to Calculate Test Automation ROI?

Why tool choice matters for regulated industries

Selecting the right automation tool is essential for insurance software QA processes. Tools with traceability, detailed reporting, version control, and seamless integrations support regulatory compliance.

Each feature ensures that testing is auditable, consistent, and transparent for stakeholders. Katalon stresses that traceability, audit-ready documentation, and reliable orchestration are critical for insurance QA.

Low-code platforms empower QA teams to scale test automation without requiring extensive coding skills. Test scripts can be created and maintained efficiently, allowing teams to focus on higher-value testing activities and strategic QA initiatives.

The right automation platform reduces compliance risk while accelerating adoption across teams. It allows insurers to implement consistent workflows, maintain audit-ready documentation, and optimize regression cycles.

Choosing a tool thoughtfully ensures that test automation for insurance industry delivers maximum operational and business benefits.

🧩 Compare options: Best Test Automation Tools for Enterprises

Conclusion: QA as compliance + growth driver

Insurance QA is a strategic asset, delivering compliance protection, customer trust, and faster delivery. Each automated test reinforces regulatory adherence and ensures that software behaves reliably for end users. Automation transforms QA from a cost function into a driver of business value.

Implementing test automation for insurance industry lays the foundation for scalable and consistent testing. Teams can execute regression tests quickly, maintain audit-ready records, and release new policies or features with confidence. Automation supports both operational efficiency and regulatory requirements simultaneously.

We encourage executives and QA leaders to evaluate automation ROI alongside compliance and product delivery KPIs. Aligning automation investments with business outcomes demonstrates tangible value, reduces operational risk, and accelerates growth in the insurance sector. Embracing automation ensures your QA processes evolve with the demands of modern insurance software.

See Katalon in action: View a Demo