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The global market for low-code and no-code development platforms is currently valued at nearly $15 billion and is expected to quadruple in the next five years.
Gartner predicts that by 2026, low-code development tools will account for 75% of all new application development, reflecting a significant shift from traditional coding practices,
By 2024, it is anticipated that 80% of non-IT professionals will be involved in developing IT products and services, with over 65% using low-code/no-code platforms.
What are the exact Cost Savings and ROI of Low-Code Platforms for Insurance Companies? Let us show you.
Direct Cost Savings of Low Code
Low-code development platforms revolutionize software economics. They slash app development time by up to 90% compared to traditional coding methods. That’s direct cost savings and faster delivery. Companies report saving millions in development expenses annually after adopting low-code solutions.
The need for super developers and extensive IT team goes away with low code. These tools empower business users and citizen developers to create applications, reducing dependence on expensive IT talent. A significant number of businesses (41%) have active citizen development initiatives, and many others are planning to start such initiatives. By 2024, 75% of large enterprises will be using at least four low-code development tools for both IT application development and citizen development initiatives.
You can redeploy your top developers to more complex projects and optimize resource utilization.
Maintenance costs drop too. Applications built with low-code tools are easier to update and modify, requiring less specialized knowledge. This simplicity reduces ongoing support costs by up to 60%. IT can redirect funds from maintenance to innovation, which will drive business growth and accelerate digital transformation progress.
Low-code ROI – Return on Investment
The ROI of right low-code platform is fast and big. Companies are breaking even on their investment within 6-12 months of deployment. That’s due to faster time to market and market responsiveness.
A study by Forrester found that businesses adopting low-code platforms could see a 260% ROI over three years. According to Gartner, low-code platforms can reduce application development time by up to 10 times.
Low code enables businesses to get to market faster. New applications can be built and deployed in weeks not months. That means you can outmaneuver the competition and capture more market share. One financial services company saw a 300% increase in new product launches after adopting low code platform for rapid application development.
Some estimates suggest that using low-code solutions can lead to cost reductions of up to 70% compared to traditional methods due to faster development cycles and lower labor costs.
Increased Operational Efficiency
Low code drives operational efficiency through extensive automation of business processes. Manual tasks that used to require human intervention can be streamlined or eliminated. Insurance companies have automated claims processing using no-code solutions, reducing processing time by up to 80% and operational costs.
Workflow and communication improvements are another benefit of low code. These platforms often include built-in collaboration tools and visual development environments. Teams can work more together, reduce bottlenecks and miscommunication.
The use of low-code technology significantly accelerates the development process. Companies report that projects can be completed 31% faster, which allows teams to implement improvements more rapidly.
The adoption of low-code platforms can lead to a reduction in total application development costs by as much as 70%.
Error reduction and quality improvements are a byproduct of low code. The drag-and-drop interface providing visual development environment and pre-built components reduce the likelihood of coding errors. Standardized processes also ensure consistency across applications.
Customer satisfaction and retention
An e-commerce company saw a 25% increase in mobile sales after deploying a mobile app developed on a low-code platform, alongside a 20% higher user retention rate than the industry average.
Retention is even more important in insurance industry compared to, for example, FMCG. Not to mention that a 5% increase in customer retention can lead to an increase in profits by 25% to 95%.
Indirect Financial Benefits of Low Code Platforms
Low code increases customer satisfaction and retention. It enables fast development of user-friendly interfaces and self-service portals.
Innovation happens in low code. The platforms are accessible to more people, so more people can contribute ideas and solutions. That’s the democratization of development. The efficiency gains and new product ideas directly impacted the bottom line.
IT resource utilization improves massively with low code. Development tasks no longer monopolize skilled developers time. They can focus on complex high value projects.
You are simply faster than the competition. Shorter development cycles allow you to grab the biggest slice of the pie, while your competitors are trying to figure out, where the pie actually is. And by the time they finally figuring it out, you're already at another pie.
Challenges and Considerations for a Low-code Development Platform
Low code platforms have initial costs and training requirements so planning is key. While the long term savings are big, you need to budget for licensing fees and employee training. A phased implementation approach can help manage those upfront costs. One company offset training costs by pairing experienced developers with business analysts and created a mentorship program to accelerate adoption.
Integration with existing systems can be technical. Legacy systems may not connect easily to low code platforms and may require custom APIs or middleware. But many modern low code platforms have robust integration capabilities.
Security and regulatory compliance are top of mind when implementing low code. Organizations need to ensure low code platforms meet industry standards and regulatory requirements. Many platforms now have built-in compliance features and security protocols.
Conclusion
Are you looking for a low-code platform to enhance digital transformation efforts for your insurance company? Do you want to increase your competitiveness and welcome the ROI from the low-code software development? Do you seek to create custom applications without overinvesting? Contact us, and tell us of your business needs. At Decerto, we'll provide your insurance firm with a solution without the need for you to write code or find someone, who can.
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