No-Code/Low-Code Solutions in The Insurance Industry

Low-code and no-code platforms have emerged as powerful tools in the digital transformation of businesses, including the insurance industry. These platforms enable users to create applications through graphical user interfaces and configuration instead of traditional programming. The result is reduced complexity, less time and money spent on building applications, and a larger pull of professionals able to work on these applications.

In the insurance sector, low-code and no-code platforms can be used to develop personalized customer portals and apps. Insurance companies can use these platforms to automate routine tasks, such as claims processing, underwriting, and customer service.

Overall, low code/no code (LCNC) in insurance represents a huge potential for this highly competitive, customer-centered industry always looking to reduce operational costs. Let's dive into what LCNC means for insurance.

High-code, low-code and no-code differences

• High-code platforms are traditional software development environments requiring coding knowledge and programming language expertise. They offer the highest level of flexibility and customization but also need the most time and skill to use effectively in insurance app development .
• Low-code platforms provide an insurance software development environment where applications can be built with minimal hand-coding, often through graphical user interfaces (GUIs) that allow for the drag-and-drop assembling of applications.
• No-code solutions, as the name suggests, are designed to enable people with no coding skills whatsoever to build applications.

The rise of low-code/no-code in insurance

The global low-code development platform market was expected to grow from $13.2 billion in 2020 to $45.5 billion by 2025 at a compound annual growth rate (CAGR) of 28.1% during the forecast period (Source ). The insurance industry represents one of the growth areas for low-code/no-code solutions.

There is a lot of potential for LC/NC in insurtech, as many industry-specific processes can be easily automated with these solutions, including AI in customer communications for insurers .

As of 2024, the insurance industry faces pressing needs for digitalization to meet changing customer expectations for online services and keep up with insurtech trends . LCNC platforms have enabled insurers to create more engaging and interactive customer portals and apps, which is crucial for customer-centered industries like insurance.

By 2025, it's estimated that 70% of new business applications will utilize low-code/no-code technologies, up from less than 25% in 2020​ (Source )​. This indicates a shift towards LCNC platforms due to their efficiency and accessibility. Additionally, 80% of non-IT professionals are expected to participate in app development by 2025 (Source ).

Strategic advantages of LC/NC for insurance companies

Low-code, no-code platforms for insurance are not just a new buzzword; they can actually make a difference in the competitive strategy of your insurance company. Here is how they can help:

Accelerating digital transformation

LC/NC platforms allow insurance companies to quickly develop and deploy digital solutions, significantly reducing the time from concept to launch. This rapid deployment capability is crucial for staying competitive in a fast-evolving market.

Another bonus that comes with a low code for insurance is cost reduction. By minimizing the need for extensive coding, LC/NC platforms reduce the development cost associated with digital solutions. As a result, insurance businesses can increase profits or invest in innovations.

Low-code/no-code solutions offer flexibility. By modifying applications built on LC/NC platforms without extensive coding, insurers can quickly adapt to market changes and regulatory requirements.

Enhancing customer experience through rapid application development

LCNC for insurance streamlines creating personalized apps for customers' unique needs. It reallocates resources from coding to boosting customer experiences. With LCNC platforms, insurers can develop mobile apps for service access anytime, anywhere. They can also create self-service portals, letting customers independently handle their policies, claims, and services. This independence boosts satisfaction and cuts costs.

Streamlining claims processing and risk assessment

Low-code solutions simplify insurance claims processing. They automate tasks like data entry, updates, and communication. These tools offer real-time data and analytics, helping insurers refine risk models. Low code/no code (LCNC) in insurance allows easy integration with current databases, improving data handling.

Examples of low-code/no-code solutions in insurance

Large insurance businesses leverage low-code/no-code solutions together with traditional coding to expand their business initiatives. Here are a few examples:

Allianz

Allianz, one of the world's leading insurance and asset management companies, has leveraged low-code platforms to streamline its internal processes and improve customer service. These platforms have been used for various purposes, including the rapid development of applications to manage internal workflows and customer interactions more efficiently.

They recently created a Building Block Platform to assist customers in customizable user journeys with reusable components (Source ). This solution could compete with well-known low-code, no-code insurance platforms.

Zurich Insurance Group

Zurich Insurance Group has utilized low-code platforms to develop solutions that improve operational efficiency and customer service. The company works with several large, low-code, no-code platforms for insurance to assist them in their goals.

For instance, they've implemented applications to streamline claims processing. Their DevOps team, comprised of former business analysts with minimal coding expertise, has generated significant business value from their app portfolio​ (Source ). They also created a digital platform using OutSystems for agents and a FaceQuote app that offers life insurance quotes based on a user's selfie (Source ).

Key features to look for in a low-code/no-code platform for your insurance business

1. Look for platforms offering pre-built templates and components tailored to specific insurance applications. The platform you choose should have specific templates for claims processing, policy management, risk assessment, and other features specific to insurance.
2. Go for a low-code insurance platform that easily integrates with other features and systems your insurance business uses, such as CRM, ERP, or claims management. Aside from platforms, it should also integrate with all existing data sources.
3. Make sure that your platform of choice has top-notch security, including role-based access control, data encryption, and audit trails. Additionally, it should support compliance with industry regulations (e.g., GDPR, HIPAA) through data protection and privacy features.
4. For underwriting, risk assessment, and personalized marketing, low-code insurance platforms must offer advanced data analytics. The best-case scenario is when a platform has reporting tools and dashboards for real-time insights into operations and customer behavior.
5. Always use a low-code insurance platform with features like chatbots, AI in insurance , and personalized portals to increase customer satisfaction.
6. Platforms with solid workflow automation and business process management (BPM) capabilities conveniently automate routine tasks.
7. While LC/NC platforms offer speed and ease of use, they should also allow customization to address specific business needs or differentiate in the marketplace. This is, however, more of a bonus feature, as not all platforms can offer this feature.
8. If you want different teams to collaborate on a project, look into effective tools for technical and non-technical users.

Examples of low-code/no-code platforms for insurance

Salesforce

Salesforce is primarily known as a platform offering CRM solutions. Salesforce Lightning is an app offering low-code solutions with a template for mobile apps. It allows the production of applications with reusable components.

The app has a drag-and-drop interface and a vast library of pre-built components. The platform also benefits from a large ecosystem of apps available through the Salesforce AppExchange, many specifically designed for insurance. Salesforce's automation workflow is directly tied to customer data, which is yet another obvious benefit.

SAP

SAP offers low-code and no-code solutions through SAP Build. One clear benefit of SAP is its exceptional capabilities for integrating with existing enterprise systems.

Moreover, SAP has robust data processing and analytics tools for risk assessment, claims processing, and customer insights. SAP offers low-code and no-code solutions for specific industries, including insurance.

A key advantage for insurers is SAP's robust data management and analytics capabilities, which are crucial for handling large volumes of insurance data. You can choose whether to extend existing SAP applications or build new ones from scratch.

Google Apps Script

Google Apps Script is a scripting platform for lightweight application development within the Google Workspace ecosystem. It allows for automating tasks across Google Apps like Sheets, Docs, and Forms.

For insurance companies, using Google Workspace can automate routine tasks. It also seamlessly integrates with all other Google applications. The interface of Google Apps Script is easy enough that even people with zero technical experience can create extensions with it.

Overall, it provides a cost-effective way for insurance companies to customize their use of Google Workspace, even though it does not provide some of the more advanced features of Google Apps.

Mendix

Mendix is a comprehensive low-code application development platform that emphasizes collaboration between business and IT teams. The reported benefits include a user-centric design, a focus on agility, and quick iteration.

Low-code development, central to Mendix, incorporates Agile principles, which help incorporate feedback and rapidly change the app if necessary. The platform allows different teams within the company to work together on low-code solutions for insurance. The apps developed via this low-code, no-code platform for insurance can be used across mobile, tablet, and desktop.

Challenges and considerations

• Lack of support for insurance-specific features in low-code/no-code insurance platforms

Low-code/no-code platforms are often designed with a broad range of generic functionalities suitable for various industries, emphasizing features like drag-and-drop UI design, process automation, data integration, and application development with minimal coding.

Instead of insurance-specific capabilities such as underwriting, claims management, or policy administration, these platforms typically focus on versatility and general business processes to cater to a broader audience.

Finding a platform for insurance needs can be a real challenge. To address the lack of insurance-specific features in low-code/no-code platforms, companies can adopt a hybrid approach, integrating these platforms with specialized insurance software that offers the necessary functionality.

This can be achieved through APIs and microservices, allowing the seamless flow of data and processes between general low-code/no-code environments and insurance-specific applications.

An uncomfortable loop is that the platforms do not create features for low code/no code (LCNC) in insurance because of the lack of customers in the insurance industry, and insurers do not turn to LCNC for insurance because of a lack of capacity.

• Adopting LCNC for insurance requires staff training

Despite the promise of LC/NC platforms to democratize development, there's still a learning curve. Users need to understand the platform's capabilities and limitations for the smooth incorporation of LCNC for rapid insurance application development, and they should plan for training and support for both technical staff and business users.

• The lack of awareness and trust is persistent

Despite the rise in no-code/low-code solutions, many organizations report not knowing anything about low-code for insurance. Additionally, 32% of organizations still lack faith in using LCNC platforms for app development, often due to concerns about scalability and security​(Source ). Companies sharing information about successful case studies of using low-code in insurance can help raise awareness.

• Integration with existing systems is an all-encompassing and expensive challenge

Integration with existing systems and platforms, including legacy systems, is the biggest issue with low code for insurance. Insurance companies often rely on legacy systems that may not easily integrate with new LC/NC solutions, potentially leading to data silos or workflow inefficiencies.

Low-code platforms with robust integration capabilities are an obvious solution, but not all platforms are big on integration capacity yet. Customization is also a way to integrate everything, but it can be expensive.

• Customization across low-code insurance platforms is limited

While LC/NC platforms accelerate development through pre-built components and templates, the number of customization options across different platforms is still limited. Before choosing a platform, a good strategy is to assess the extent to which the platform allows customization. If your insurance solution needs critical unique features, select the platform that supports extending applications with custom code.

Conclusion

LCNC for insurance has endless potential for effortless customization and automation. However, not all platforms offer features that incorporate what insurance businesses need. A remote IT team like Binariks can play a crucial role in overcoming the challenges and maximizing the benefits of adopting a low-code/no-code (LC/NC) platform within an insurance company.

Here's how we can help:

• Integrate your LCNC solutions with legacy systems and other platforms through APIs and middleware.
• Plan and execute scalability tests and optimize app performance
• Develop custom components and extensions catered to your business
• Evaluate LC/NC platforms for compatibility.

Contact Binariks to learn more about avoiding rapid insurance application development bottlenecks with LCNC platforms.