Low-code or no-code tools are exactly what they sound like. They require little or no coding knowledge to build, making them much more accessible to those with limited or no programming experience.
Insurers that adopt low-code/no-code tools can reduce legacy software costs, enhance their adaptability to emerging market trends, and improve operational efficiency. Low-code and no-code insurance platforms are enabling digital transformation efforts, allowing teams to build complex solutions without heavy involvement from the IT team.
Below, we’ll take a look at the role of low-code/no-code tools in the insurance space, the advantages they offer, and some specific use cases of this technology as insurers continue to pursue digital transformation efforts.
What Are Low Code/No Code Tools?
In the past, for an organization to develop a new application or digital solution, it would require a software developer to write lines of code instructing the computer program how to perform certain tasks.
Now, low-code/no-code solutions make it much easier for more people on the team to develop applications, often using simple drag-and-drop editors. Of course, there is a distinction between low-code and no-code solutions. Low-code tools may still require some hand-coding, while nearly anyone can build no-code solutions.
According to Gartner estimates, by next year, 70% of new applications that businesses develop will use low-code or no-code technologies, up from less than 25% in 2020. This rapid growth underscores the impressive value these solutions offer, helping insurers become more agile and equipped for the digital age.
Understanding Low Code/No Code Tools in Insurance
Low-code and no-code tools have valuable use cases in nearly every industry, with growing adoption rates expected to continue over the coming decade. Statista estimates that the global low-code platform market will be worth $65 billion by 2027. Specifically, the use of low-code/no-code solutions in the insurance space is driving part of this growth.
Over the past decade, the insurance industry has seen a greater focus on digital transformation efforts. Insurers didn’t always embrace advanced technologies. However, with rising policyholder expectations for digital experiences combined with growing competition from insurtech startups, insurers now recognize the need to modernize operations.
This is where low and no-code solutions come into play. These solutions allow insurers to upgrade their tech stacks without large investments or a fully-staffed team of developers. Instead, non-technical staff can quickly build and update applications independently. This makes it easier to pivot operations in today’s fast-paced landscape and respond to emerging market trends, evolving policyholder demands, and a changing regulatory environment.
Benefits of Low Code/No Code Tools for Insurance Companies
Low-code/no-code tools offer tangible benefits for insurers, helping them establish their competitive edge in the modern insurance market. Here are some of the top advantages these solutions provide:
Greater Agility and Flexibility
One of the prime benefits of low-code/no-code insurance platforms is that they enable insurers to develop and deploy new solutions quicker than ever before. In other words, there is less upfront effort required to develop new applications and platforms, as the time-consuming code-writing process is no longer a factor.
In some cases, teams can deploy new applications with little or no involvement from the IT team, making it easier to rapidly launch new solutions to meet emerging market trends and policyholder demands.
Reduced Staffing Pressures
With low-code/no-code solutions, insurers can become less reliant on the capacity of the IT department to upgrade or develop new applications, allowing more team members to be hands-on with the app-building process.
Thus, in a tight labor market where it’s increasingly difficult for insurers to attract and hire qualified talent, these solutions help to ease insurance staffing pressures. Plus, the cost of hiring full-time developers may not be feasible for all organizations. Instead, insurers can have non-technical professionals already on staff create and update applications as needed.
Lower Legacy Software Costs
Traditionally, insurers invested significant amounts of money in legacy technology systems. This made them less compelled to upgrade or adopt new systems when capabilities advanced, as insurers wanted to get the most value from their investment before adopting a new solution.
These concerns about costs sometimes keep insurers using old and outdated systems even after better solutions emerge. No/low-code solutions resolve this issue. With a shorter, less costly development cycle for new applications, it’s easier for insurers to pivot to new solutions without worrying about the sunk costs they’ve invested.
Enhanced Operational Efficiency
As it becomes easier for developers to build and launch new solutions with low code/no code tools, insurance teams can constantly get access to new and better applications that help them work more efficiently.
Especially in the insurance space, where essential tasks like claims processing are tedious and time-consuming, insurers can quickly develop new solutions to help automate these workflows and free up their team’s time for more strategic work.
Encourages Innovation
In addition, since developing low-code/no-code solutions is less resource-intensive, teams can have more freedom and flexibility to create innovative solutions. Insurers don’t have to worry that their experimentation will be costly for the business and can instead foster a culture of innovation throughout the organization.
Real-World Applications of Low-Code/No-Code Tools in Insurance
To illustrate the specific value of these tools, here are some examples of how low/no-code tools can be used in the insurance space:
- Product Personalization: Insurers can easily build personalized insurance policies tailored to policyholder needs, adjusting coverage levels, premiums, and other details quickly and easily.
- Market Expansion: If insurers are expanding coverage into a new market or are adding a new line of business similar to existing products, teams can copy existing programs and use them as a template for the new product line.
- Compliance Updates: These solutions make it easier for insurers to update systems to reflect new regulatory guidelines, preventing issues of non-compliance. This is especially valuable when changes need to take place immediately, and there’s no time to find a programmer to code the new rule.
Take Advantage of Easy Core System Updates with Insuresoft
Whether insurers need to add new product lines to better serve policyholders or change underwriting rules to align with new risk management practices, no and low-code tools make it possible for non-technical staff to quickly make these changes.
With Insuresoft as your core tech solution, you can take advantage of the easy-to-use COMPOSER tool for any system updates and modifications. COMPOSER allows us to custom-configure the solution to your unique workflow requirements during implementation. Then, your team can take full control over all future changes to the system using the same tool—with minimal training required.
Contact us today to learn more about Insuresoft and see how the COMPOSER tool allows you to quickly pivot and adapt to take advantage of emerging market opportunities.
