In the race for digital transformation, insurers face a challenging dilemma: build faster without breaking the bank, which is crucial for future scalability.
The low-code no-code platforms today are proving to be some of the powerful tools that will enable insurers to innovate at speed, deliver customer-centric products, and also modernize their legacy operations. All this without adding to a heap of technical debt which has long haunted the industry.
One question that the insurers need to ask- Are these platforms just a passing trend? Or are they truly trying to reshape how the insurance products are built, deployed, or even scaled?
Bottlenecks Exist, but Will They Help Insurers Innovate?
The insurance IT in a more traditional setup was not ready to build any agility. But the traditional operational setup remains the same- which includes introducing a new product, digitizing a claims workflow, or also for launching a partnership channel which essentially includes months of testing, coding, and rigorous compliance checks.
Wondering what the result of this is? Slow time to market, ballooning costs, and missed opportunities. This is exactly where the low-code no-code platforms in insurance will be the absolute game-changer.
The Tech Debt is Channeling the Path for Insurance Modernization
The tech debt is one of the most silent yet also one of the most destructive forces in the insurance ecosystem. Over the last decades, insurers have successfully managed to build ecosystems with custom code, point solutions, and legacy architecture. These are the systems, that were once innovative but are now slowly dying down in terms of empowering the insurers.
These systems are inflexible, expensive to maintain, and also are not resistant to change.
Every new product, every compliance update followed by every integration is becoming slow, and a costly project. Insurers who once gained a technical edge have now turned into liabilities.
Imagine a tech debt that looks something like this:
Outdated Core Systems
These are the systems that can’t support any real-time processing
Siloed Data
Data silos cause incompatibility in formats across departments
Business logic Hard-Coded
The business logic is hard-coded much deeper into applications which essentially requires weeks to change into a single rule.
Integration Nightmares
Integration nightmares have significantly prevented partnerships and have also limited the customer experience innovation.
While this is the reality for most insurers, imagine innovating without accumulating any debt. That’s the low-code, no-code advantage.
The Low-Code No-Code Advantage
75% of IT leaders in insurance agree that low-code adoption is one of the trends that they can’t miss out on. The low-code no-code platforms are beyond just a tech advantage. These platforms are modern, and cloud-native built which significantly helps the insurers to move fast without even compromising control.
While tech debt is a significant issue, these low-code and no-code platforms are flipping this traditional model:
API-First Architecture
The low-code no no-code insurance platforms are specifically designed for interoperability. These platforms essentially seem to connect with legacy systems, third-party services that include health databases, payment gateways, and fraud detection engines followed by the new age Insurtech tools that do not require months of custom coding.
Modular Design
With the reusable components, the insurers can significantly build applications block by block. Imagine updating a claims system. You will not need to re-architect the entire system; all you need to do is replace or tweak a specific module.
Cloud-Native Infrastructure
The days of capacity planning and hardware constraints, the LCNC platforms are essentially built horizontally and securely in the cloud, while seamlessly allowing the insurers to handle the surges in demand, roll out the different updates, and launch digital products on a global scale with confidence.
Is the Low-Code No-Code Platform Just a Strategic Hatch
Insurers who embrace low-code no-code platforms are not just optimizing speed, but they are thinking of making a more strategic shift away from the brittle and the high-maintenance systems. 80% of low-code no-code platform users report increased productivity, while 74% enjoy greater flexibility in building solutions on their terms.
Today, insurers are choosing configuration over customization, flexibility over fragility, and continuous innovation over tech stagnation.
While the insurers understand the importance of speed, reliability, and strategic tech adoption, they are unlocking the ability to respond to regulatory changes in days, offer a more personalized experience for seamless policy distribution in every policy distribution channel, and co-create the offerings with digital partners much faster than before.
Why is it Important to Go Beyond the Notion- low-code no-code is One Size Fits All
The resistance to change for insurers specifically lies with their thought that low-code and no-code platforms are built to fit all insurers. However, this is not the case. These platforms offer immense promise, and not all are created equally. This is especially true for the highly regulated and deeply specialized world of insurance.
There are many energetic platforms which specifically cater to different horizontal use cases across different industries, such as CRM, HR automation, internal tools but in a more nuanced and specialized industry- insurance.
However, before adopting an LCNC platform, the insurers need to look beyond the surface level capabilities and evaluate whether the solution is built for complex, mission-critical needs of the industry.
But the key to adopting a low code no code platforms essentially lie beyond surface level capabilities and hence evaluates whether the solution is specifically built for meeting the complex, mission-critical needs of the industry.
Here’s what to consider in a nutshell:
Industry Specific- Purpose Built for Insurance
A Low code no code platform which is specifically built for insurers will not understand the intricacies of a policy lifecycle management, claims adjudication, underwriting logic and reinsurance workflows.
Regulatory Alignment- Compliance Ready right from Day One
The insurance industry is one of the most regulated industries globally. Any digital platform which will be able to transform compliance into the build process and not hold onto it later.
Extensibility and Future Readiness
The low code no code platforms are not just about what you can build today, rather they are about how these platforms can prepare for tomorrow.
The insurers need to look for platform features which includes AI/ML capabilities, IoT integrations and microservices and event-driven architectures support for staying nimble as the ecosystems significantly evolve and grow.
Choosing Wisely is the Norm- Build Speed without Trying to Sacrifice Control
The true power of Low Code No Code platforms essentially enables businesses and IT teams to innovate together without any kind of friction. This essentially works when the platform is specifically purpose-built for insurance. By leveraging the right no code low code platform, the insurers can launch faster, stay compliant by design, and adapt seamlessly to future technologies.
