The verdict in three sentences
For an insurer handling 18,000 motor claims a year in Dublin, a custom claims management module costs, as a 2026 order of magnitude, €200,000 to €500,000, depending on how deeply it integrates with your policy administration system. The return comes from measurable sources: fraud detected, repair cost control and claims handler productivity. Under Central Bank of Ireland supervision, the module is also a compliance tool, because it records every acknowledgement, update and settlement deadline the regulator can inspect.
Functional scope and cost
Most Irish insurers already run a policy and billing platform. What is often missing is a modern claims chain: notification, evidence, assessment, repairer estimate, reserve, payment, recovery. The table details a typical scope.
| Module | Key function | Indicative 2026 cost (EUR, ex VAT) | Build time |
|---|---|---|---|
| Digital FNOL | Web and app, geotagged photos, digital accident report | 25,000 to 60,000 | 6 to 8 weeks |
| Claims workflow | Tasks, reserves, documents, letters, regulatory deadlines | 60,000 to 130,000 | 10 to 14 weeks |
| Assessors and repairers | Assessment instructions, estimates, before and after photos, labour rates | 30,000 to 75,000 | 8 to 10 weeks |
| Payments | Settlement letters, SEPA Instant transfers, approval limits | 15,000 to 35,000 | 4 to 6 weeks |
| Fraud detection | Rules, duplicates, vehicle and third-party history, risk score | 35,000 to 90,000 | 8 to 10 weeks |
| Recoveries | Subrogation tracking, inter-insurer settlement, chasing | 15,000 to 40,000 | 4 to 6 weeks |
| Reporting | Cycle times, reserves, regulatory and Solvency II extracts | 20,000 to 50,000 | 4 to 6 weeks |
Modules total €200,000 to €480,000 before project management and migration of open claims. Annual running costs (hosting, maintenance, regulatory updates) usually sit between 12 and 15% of the initial build.
The Consumer Protection Code sets claims handling expectations, including acknowledgement of a claim within 3 business days, written updates at least every 20 business days and settlement payment within 10 business days of the claimant accepting the offer. Software that computes these deadlines, alerts handlers in advance and keeps a full audit trail protects the insurer during a Central Bank review. Since January 2025, DORA also requires documented ICT risk management for the platform itself.
Where the gains are
Assumptions: 18,000 claims a year, average cost €4,200, a €75.6 million claims bill, 60% of it repair costs. Percentages are prudent estimates, not commitments.
| Lever | Current situation | With the software | Estimated annual gain |
|---|---|---|---|
| Fraud and inflated claims | Case-by-case detection | Rules and score on every claim | 0.6% of claims cost, €453,600 |
| Repair costs | Estimates accepted without benchmarks | Parts and labour benchmarks | 0.5% of repairs, €226,800 |
| Average settlement time | 45 days | 20 days | fewer complaints to the FSPO |
| Handler time | Data entry, phone chasing | Online evidence, automated chasing | 20% of 14 handlers' time |
| Missed recoveries | 8% of eligible claims | 2% | higher recovery income |
| Regulatory deadlines | Tracked in spreadsheets | Alerts and audit trail | lower supervisory risk |
Insurers that structure detection commonly report a 5 to 10% reduction in fraud in the first year. Most of the value comes from simple cross-checks: the same vehicle claimed twice, the same witness across several accidents, a repairer whose estimates are consistently above average.
Integrate rather than replace
Replacing a core policy system often costs several million euros and takes two years. A custom claims module connects through APIs or file exchange: it reads policies, covers and excesses, then returns payments and reserves to finance. This limits risk and allows phased go-live, starting with digital FNOL.
Mini case study
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Aoife, head of claims at a P&C insurer in Dublin, approves a €350,000 scope with €60,000 a year in running costs. First-year gains retained: €453,600 on fraud, €226,800 on repairs and 20% of 14 handlers' time, 2.8 FTE at €58,000 loaded, €162,400. Total: €842,800, minus €60,000 running costs, €782,800 net. The build is covered in 350,000 / 782,800 x 12 = about 5 months, before counting the effect of faster settlement on renewals.
FAQ
How long does go-live take?
Plan 6 to 9 months for the full scope. Digital FNOL and the core workflow can be delivered in 12 to 14 weeks, which already cuts inbound calls by 30 to 40%.
Can policyholders notify a claim through a messaging app?
Yes, a guided flow collects photos, location and accident details, then opens the claim automatically. The handler receives a complete file instead of three successive calls, saving 15 to 20 minutes per claim.
How are payments controlled?
SEPA Instant transfers are triggered from the claim with dual approval above a threshold, for example €5,000. Every payment is linked to the settlement letter and logged for audit.
How is claimant data protected?
GDPR applies, with special care for medical data in injury claims. The software encrypts documents, logs every access and applies role-based permissions, which supports your DPIA.
Do we need to replace our policy administration system?
In most cases no. An API or daily file integration costs €20,000 to €50,000 and preserves your existing investment.
Let's scope your project. Share your claims volume, current systems and regulatory constraints, and we will price a phased scope with an indicative budget and deployment calendar. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
