Traditional insurers have been hindered and lagging for decades due to their inefficient processes and the inability to integrate their monolithic legacy systems, which have resulted in impervious divisions that prevent the free flow of information and collaboration between departments, finally ending up in a lack of coordination and technical inefficiency.
Enter low-code development, that has successfully been able to bridge the information gap that insurance players with age-old and outdated legacy IT infrastructure have been encountering. Most importantly, it has also allowed insurers to better reach out and engage with their customers, and create a universal ground for introducing insurtech start-ups from large tech firms like Amazon, Alphabet (Google), and Alibaba, among others. And today, low-code development is enabling the insurance industry to meet some of its most critical challenges.
Statistics from some of the recent surveys are compelling and bares the grey areas, opportunities, and challenges that insurers across the globe are encountering currently. Research revealed that 39% of insurers lack insights into the future benefits of implementing a technology solution and over 11% lack a coherent view on the key technology trends. Almost 28% of insurers face difficulty making quick technology-related decisions and over 14% of insurers face challenges in moving from pilots and experiments to scaled deployment. More than 10% of insurers lacked the IT capacity to implement digital solutions in their organizations.
Despite the demand for a quick response by insurers to technological improvements, before the introduction of low-code development, creating software through the traditional development approach was highly time and resource-intensive. And thus, low-code development comes at a time and phase where insurers are looking for compelling solutions to get them back in the game and quickly churn out offerings that appeal to new cohorts like millennials and Gen-Z, all the while not overspending.
With low-code development, insurance companies can:
- Drastically reduce dead IT investment costs
- Gain business resilience in the evolving business landscape
- Increase their operational efficiency
- Enhance customer experience and increase better customer relationships
- Rapid integration with legacy systems
Reduce unnecessary IT investments
With low-code development that simplifies enterprise application development, insurers can drastically reduce their technology debt as well as cut back on software development costs. Most technology investments become redundant after a few decades (at the most) due to the rapidly advancing technology innovations across industries, thereby reducing their investment attractiveness. Moreover, most of these technologies require maintenance costs, skilled professionals, constant updating, and more. But low-code platforms accelerate the complete software lifecycle development process eliminates the need for a team of skilled developers.
Increase business resilience
The software development process with traditional IT teams requires an additional expense of hiring a team of IT support which lags significantly compared to the low-code development process. Such a delay could be fatal for insurance companies. Low-code development offers companies the ability to deliver faster applications by reducing or eliminating the time-consuming code-writing process.
Empower business users (Citizen development)
There is a huge chasm in the availability and demand of skilled IT talent across the world. Recent reports by Deloitte states that almost 70% of managers agree on a significant skill gap among employees, especially in the IT industry. Hence, low-code is the perfect solution to these woes. Unlike traditional software development, low-code development with its easy drag-and-drop visual interface does not require skilled coders or large development teams. It can empower business users (also called citizen developers) to rapidly build applications as per their requirements. People who know the business problems well can develop software systems that solve their business problems thanks to the democratization of software development through low-code.
Better customer relationships and higher conversions
Enhancing the client experience and digitizing the whole policy lifecycle are essential aspects of the insurance industry. Customers and intermediaries are increasingly demanding seamless omnichannel experiences, which insurers’ back-end systems cannot provide if they do not interact with one another. As a result, customer-centric apps must be built to fill in the gaps in information while also adapting user interfaces to new mobile settings.
Discover new possibilities with seamless integration:
Low-code modernization enables easy and seamless integration while also automating tasks and processes, resulting in a transversal view of the client and the ability to communicate smoothly between the customer, intermediary, and insurer via email, phone, video chat, or instant messaging. Artificial intelligence plays an important role in internal operations, allowing companies to take full use of customer data to improve the user experience, assess risk more intelligently, and optimize policy reviews and renewals while discovering cross-selling possibilities.
Intelion Systems is one of the leading contenders in the industry to support digital transformation in the insurance industry through low-code covering all lines of business, and through omnichannel capabilities to improve the customer experience. The AI capabilities provided by Intelion, which thanks to its low-code technology allows the integration of third-party AI services such as machine-learning and intelligent document processing, among others.
Low-code technology has allowed the insurance sector to respond to the challenges it faces, accelerating digital transformation with little additional code development, and better still: an improved customer experience.