The growing popularity of low code in insurance affords an excellent opportunity for insurance companies to create innovative, user and business-friendly applications. In the face of a global tech skills shortage and an ever-expanding IT backlog, riding the insurtech curve can prove beneficial.
With its easy-to-use interface and a vast library of readily available, reusable components, low-code platforms allow small and medium-sized insurers to build apps more rapidly than ever. Low-code’s modular approach speeds up development timelines and reduces the need for monitoring. As a result, insurers can focus on their core competencies.
The following business cases illustrate how low code in insurance can ease several insurance functions:
Underwriting
Low-code platforms simplify underwriting by automating various processes and enabling insurers to create and modify underwriting rules without complex code. They also empower insurers to adapt to market or customer needs without significant IT support or resources. In addition, since they integrate readily with various data sources, insurers can gather and analyze customer data in real time. They also help identify customer needs and adjust policies to improve customer experience.
Furthermore, low-code platforms often include pre-built components and templates for everyday underwriting tasks such as rating and policy issuance. This allows insurers to create and launch new products or services quickly, enabling faster time-to-market and increased competitiveness.
Claims Management
Low code in insurance helps ease claims management by automating and optimizing tasks like data collection, case management, and document processing. Insurers can digitize the claims process from submission to settlement using pre-built components and templates.
Automating claims routing, fraud detection, and settlement will help speed up the claims process, reduce potential errors and allow insurers to focus on more complex cases. Low-code platforms also offer real-time access to data, so insurers can quickly identify patterns or anomalies and adjust accordingly. As a result, insurers can better manage their risk exposure, reduce costs, and improve the overall claims experience.
Low-code platforms also include intuitive interfaces for customers to submit claims and track their status online. This increases transparency and convenience while reducing call center volumes and improving customer satisfaction.
Reporting
Low-code platforms allow insurers to gather data from various sources and analyze it to gain insights into business operations. Pre-built connectors draw data from multiple sources, including legacy systems, and quickly integrate it into a single database. As a result, insurers gain a unified view of their business, which is essential for accurate reporting.
Low code in insurance contributes to automating report generation and distribution, so resources are free to focus on critical tasks. With real-time access to data, insurers can generate reports on demand, gain real-time insights and respond to evolving business needs.
Unique drag-and-drop interfaces help insurers create custom reports by selecting data sources, specifying data fields, and arranging the report layout. Low-code platforms also help insurers comply with regulatory requirements by providing data lineage and audit trails, which are essential for ensuring compliance and accountability.
Customer Experience
One of the primary benefits of low code in insurance is its ability to personalize customer interactions. Insurers can collect and analyze customer behavior, preferences, and demographic data. This information makes it possible to tailor-make offerings, personalize communications and services, and improve customer satisfaction and loyalty.
Low-code systems offer customers self-service options, including online portals and chatbots, to quickly access information, handle claims, and verify policy status. Self-service options also help reduce call center volumes and improve response times, increasing customer satisfaction. The staff can focus on more complex customer issues by automating routine tasks, such as data entry and processing. This would improve the overall quality of customer interactions and increase customer satisfaction and loyalty.
Low-code platforms also enable insurers to provide omnichannel experiences to customers so that they can interact with insurers through multiple channels, including web, mobile, social media, and voice. This would offer customers greater flexibility and convenience and improve customer satisfaction.
Compliance
Low code in insurance simplifies the compliance process by providing a flexible and agile approach to compliance management. Built-in compliance checks, a centralized and auditable data repository, comprehensive reporting and analytics capabilities, and a secure and scalable environment reduces the costs and risks of non-compliance. It also improves the overall effectiveness of compliance programs.
Modify workflows, rules, and policies to comply with new regulations or change existing ones without extensive IT support or programming skills.
Detect and prevent compliance violations by customizing checks to meet specific regulatory requirements and reduce human error.
Comprehensive reporting and analytics capabilities to generate compliance reports and dashboards in real-time.
Wrapping up
In a 2021 article titled “How top tech trends will transform insurance,” McKinsey & Company pointed out, “A handful of accelerating technology trends are poised to transform the very nature of insurance.” It stated, “To survive, incumbents must adapt their operating models, products, and core processes to a new reality [1].”
According to the NTT DATA Insurtech Global Outlook 2022 Report, global investments in insurtech touched $10.1 billion in 2021, a 175% jump compared to the previous year [2]. A Willis Tower Watson research piece concluded that worldwide insurtech investments are rising from Covid-19-related lows, reaching $2.55 billion in Q1 alone [3]. This suggests that the new way of doing insurance will be powered by technology more than sheer grit. A McKinsey survey of almost 36,000 consumers found that service industries with extensive digital services received higher feedback rankings [4].
In this context, one of the fastest ways to ride this growth spurt would be to choose an agile application-building methodology, such as low-code platforms.
References
Krishnakanthan, Krish, et al. “How Top Tech Trends Will Transform Insurance.” McKinsey & Company, 30 Sept. 2021, www.mckinsey.com/industries/financial-services/our-insights/how-top-tech-trends-will-transform-insurance.
“Insurtech Global Outlook 2022 Report.” NTT Data, 21 Apr. 2022, uk.nttdata.com/news/investment-in-insurtech-tops-10-billion-dollars-up-38-percent-compared-to-2020.
Smith, Ryan. “Insurtech Investment Reaches New High.” Insurtech Investment Reaches New High | Insurance Business Asia, 29 Apr. 2021, www.insurancebusinessmag.com/asia/news/technology/insurtech-investment-reaches-new-high-253605.aspx.
Breuer, Ralph. “Service Industries Can Fuel Growth by Making Digital Customer Experiences a Priority.” McKinsey & Company, 30 Apr. 2020, www.mckinsey.com/capabilities/mckinsey-digital/our-insights/service-industries-can-fuel-growth-by-making-digital-customer-experiences-a-priority .
