Low-code platforms have made a significant contribution to the advancement of technology in the insurance sector. These application development platforms require little coding and were intended to help speed processes within insurance organizations. Additionally, they have proven to be cutting-edge tools for insurance carriers and are increasing in popularity. The Global Market Estimates Research & Consultants forecasted the global low-code technology market in insurance to grow 17.4% from 2024 to 2029.
In contrast, low-code systems are already equipped with tool kits in the form of graphical user interfaces and cases to address the problems and hence act as collaborative working tools throughout the organizational hierarchy in the application development process. The technologies’ intrinsic benefits include:
- comprehensive digital transformation;
- enhanced customer satisfaction through self-service
- increased speed of internal business processes and procedures.
As reported by Gartner, the opinion that non-IT specialists will be responsible for 80% of all technology development by 2024 is quite actual, with more than 65% of these specialists using low-code/no-code platforms. This emerging technology will help insurers reduce development cycle times, freeing up capacity typically consumed by this process. This allows insurers to focus on other critical activities and initiatives.
10 benefits associated with the use of low-code platforms in Insurance
Automating Manual Efforts
Manual collection of data on claim frequency, incurred costs, and other variables related to business often results in insurers facing large volumes of data. This leads to cumbersome, time-consuming tasks and increases the risk of errors . Low-code platforms help to optimize employees’ work through the automation of routine tasks and processes like claims, policy underwriting, and document creation. This way, insurers can positively impact the organization’s productivity and minimize the error rate. The low-code platforms can also accelerate the offering of new products and services in the market.
Unified Data System
By leveraging low-code platforms, insurers can mitigate the issues associated with traditional systems and efficiently develop a unified data system. Currently, and as the insurance industry advances data will always play a critical role in the decision making process. However, in the past, data silos have prevented a cohesive view. Low-code platforms can help insurance firm to create a unified data platform through breaking down silos. a data strategy can therefore help insurers to make the best decisions, improve on risk management and bring out the best on business processing.
Enhanced Customer Experience
Maximizing the experiences of customers is quite valuable in the insurance industry due to high competition. Low-code platforms enable insurers to provide seamless self-service experiences through portals, chatbots, and similar communication channels. By applying automation and using AI analysis, insurers can enhance the personalization of the provided insurance solutions, accelerate claims handling, and develop proper customer engagement strategies.
Cost-saving Measures
The conventional way of software development is costly due to expensive upgrades, frequent maintenance, and high training and staff costs. In contrast, low-code platforms are more beneficial as they not only reduce these costs but also make it easier to modify applications, allowing insurers to save money and redirect resources towards innovation and development.
Quick Adaptation
In the existing and rapidly changing legal climate, flexibility is the key to an insurer’s success. Low-code platforms allow organizations to quickly adapt to new and constantly changing requirements, regulations, and market shifts. Low-code platforms ensure that insurers can change their strategies or ways of working at the click of a button.
Considering the approximate number of 332.3 million insured people in the United States and 1.417 billion in India as well as increasing annual growth, numerous insurance companies face the need for effective IT solutions to support their work processes by using low-code platforms.
Upgrading Legacy Systems
The inefficient IT systems or what is known as legacy systems, are a major concern for insurers who aim at increasing organization agility. Low-code platforms are the means of joining legacy architecture and novel applications, as well as effectively implementing new features. Thus, insurers can embrace the process of digitalization and adapt its model to modern requirements.
Automating Underwriting Processes
Risk assessment actuarial work to develop the price and determine the profitability of the product; these are some of the functions grouped under underwriting. The use of low-code platforms will also come in handy for underwriting. It is an effective way of automating work processes hence improving efficiency in risk evaluation and issuance of policies. Real-time data and analytics of insurers reduce the exposure of risk selection and enhance the portfolio of insurance firms.
Accelerating Claims Management
The management of claims is a major component of insurance and should be done effectively to enhance customer satisfaction, thereby increasing customer loyalty. Smart processing for claims management is made easier by low-code platforms, allowing for shortened claim processing, validation, and adjudication cycles. Claim payout can also be advanced through the use of artificial intelligence algorithms and predictive analytics. Fraud risks can also mitigated and most importantly, customers’ experiences can also be enriched throughout the claim processing cycle.
Streamlining Reporting Processes
Reporting requirements are often very cumbersome for insurers to meet, so a constant and accurate process of data and regulatory compliance is required. Low-code provide insurance firms with effective automation tools in the reporting procedures related to claims handling, compliance, and productivity. Real-time dashboards and specific templates for occasionally-used reports can increase the level of transparency, as well as contribute to simplifying and accelerating the auditors’ work, and making better decisions.
Ensuring Regulatory Compliance
It is important for insurers to adhere to the regulatory requirements set out by the insurance regulatory body. Built-in security, governance, and compliance features mean that low-code platforms support regulatory requirements and industrial compliance effortlessly while enabling insurers to modify their workflows, business rules, and user interfaces.
Conclusion
Low code platforms have benefited the insurance industry all across the globe, they delivered operational changes, added value to customer experiences and are contributing to the development of digital solutions. The concept of this new-age definition of development methodology offers insurers an opportunity for bottom-line growth, competitive differentiation and a new angle to do so.
Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, communication management, and AI/ML capabilities. Globally, successful enterprises rely on Newgen’s industry-recognized low-code application platform to develop and deploy complex, content-driven, and customer-engaging business applications on the cloud. From onboarding to service requests, lending to underwriting, and for many more use cases across industries, Newgen unlocks simple with speed and agility.
