Posted  May 10 2022

Low-Code/No-Code for Insurance Companies; Overview.

Written by Jerônimo do Valle
Traditionally speaking, the insurance industry is not characterized by agility. For decades, the tried-and-true approach worked, after all, clients had limited expectations and success was largely linked to how the insurer managed financial risks, through investments and actuarial science.
Today, however, it is no longer enough to build and sell the right products. After migrating to digital, customers "hold all the chips" and their preferences can change quickly, as well as the quantity - and quality - of options launched by the competition. Therefore, speed and agility need to be on the agenda of all companies in the sector. The ability to launch new products and customize policy features as the situation requires is imperative.

According to available data, half of the insurers accept that meeting the needs and expectations of this new customer profile - which is characterized by constant evolution - will be a major challenge over the next three years. However, considering that we are talking about companies that live immersed in a world of legacy corporate systems, creating a culture of innovation and adaptability is, in reality, a much more complex scenario.

One of the crippling factors for insurance product development is the fact that changes or updates often require layer upon layer of approvals before they are even added to the IT queue for implementation – which can last for months or years. It is a painful process that takes a substantial toll in time, money and lost opportunities. As a consequence, by the time the IT project is completed and launched, it is likely that it is already behind schedule and the customers have already moved on.

Low-code/no-code platforms are becoming a must-have methodology to solve these problems, providing the simplest way for insurers to develop an idea and producing reliable applications 6 to 20 times faster than "traditional coding" (=from scratch). Numerous studies show that the adoption of these tools is increasing as the industry accelerates its digital transformation efforts, especially due to their ability to create composite applications and generate customer engagement, in addition, of course, to increasing accessibility to the development of mobile and cloud-hosted applications.

The concept of "survival of the fittest" has never been more present in the sector - with the planet emerging from the catastrophic shutdowns that have ravaged the world economy - there is little doubt that, right now, your organization is feeling enormous pressure to reimagine products and experiences. Like a "Columbus egg", low-code/no-code tools emerged to give insurers the speed and dexterity needed to keep up with changing customer behaviors and motivations in the age of digital transformation.