Two factors continue to impact insurance organizations. New market challengers are changing the competitive landscape. At the same time, many carriers continue to be bogged down by legacy technology. This requires an agile “transformation” and “digitization” approach be adopted by the industry. One solution—low code/no code application development platforms—enables carriers successfully accomplish both.
Low Code/No Code
At a basic level, low-code platforms provide developers with intuitive tools to make their jobs easier and more effective. Low-code platforms are especially beneficial to developers, offering visual interfaces with simple logic and drag-and-drop capabilities that don’t require complex coding language changes.
No-code development platforms provide graphical user interfaces and drag-and-drop tools that allow business analysts and non-technical users to build software applications without the help of highly skilled professional developers or programmers. No-code app platforms can empower various members of the workforce. Business users who may not have any technical background can design and build software applications easily, without the help of professional developers or programmers.
Since these users don’t need prior coding experience, business users can focus on modelling their business process, workflow, data as well as basic integrations, thus enabling IT teams to focus on their core system transformations, complex integrations, governance, etc. No-code tools can help speed time to market, since they can enable faster development of enterprise applications. Shorter, more efficient application development can reduce both cost and risk. Because no-code platforms are easy to use for even non-technical users, business and IT teams can collaborate to together accelerate innovation. No-code platforms can enable digital experiences for agents, reinsurers and end customers by modernizing legacy systems.
The category of no-code creates the promise of a highly flexible platform architecture that doesn’t need to have all the capabilities required for carriers to make inroads into the digital world in one place. You can implement end to end process for simple to medium complexity products and simpler use cases in the platform. With no code, carriers still have the opportunity and option to leverage their existing core systems that they’ve invested in and will continue to invest in by leveraging the platform for its front-end capabilities and API integrations.
In addition, they can also embed into this architecture and integrate with existing third-party software solutions, homegrown systems, and ecosystem partners. No code platforms also give carriers to create a roadmap for their legacy transformation as well as make some of their legacy systems/products irrelevant. In today’s day in age, the concept of an “administration system” is legacy and needs to be absorbed by enabling digital administration processes.
Simpler Products and Architectures
Implementing a no-code platform is not an all-or-nothing approach. Carriers can keep their high complexity use cases or very complex products in their existing core systems, for administration, claims or billing, for instance. In parallel, our industry must drive overall simplification moving towards simpler products and simpler end-to-end architectures.
However, the fact that the insurance industry is complex by design will bog down carriers and hold them back. This is where the 80-20 rule comes in. Approximately 80 percent of the market opportunities will need to be simple, low complexity products that can be redesigned, reimagined, and rebuilt to offer very digital experiences and meet customer demand for self-service. The remaining 20 percent of the business will be more complex business with high end policies that require white-glove treatment.
Leveraging a no-code platform can help insurance carriers remain competitive in a challenging operating environment, by enabling efficiencies and allowing insurers to build future-proof digital applications to help meet the needs of customers for digitally-enabled experiences.
Source: Insurance Innovation Reporter
