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The insurance industry is undergoing a major transformation with low-code development platforms at the forefront. This innovative approach to software development is reshaping how insurers manage business processes, innovate, and serve their customers. But what does this mean for the future of your company?
In this article, we explore the game-changing trends in low-code development that will redefine the insurance industry. From rapid application development to AI integration, from empowering business users and citizen developers to enhancing the customer experience, low-code platforms are streamlining the development process and reshaping the competitive landscape. Embracing low-code could be the most strategic decision your insurance company makes this decade.
The Low-Code Insurtech Revolution
The global insurtech market, valued at approximately $5.45 billion in 2022, is projected to grow at a CAGR of 52.7% from 2023 to 2030.
Insurtechs initially outpaced traditional carriers in premium growth. However, in 2022 and 2023, traditional insurers began regaining ground. Direct channel premiums rose by 10.3% in 2023, and the overall market grew by 18.7%. Low-code application platforms are playing a crucial role in helping traditional insurers catch up by enabling faster innovation and better operational efficiency.
Low-Code vs. Traditional Development
Insurers have increasingly turned to low-code development platforms to accelerate app development and automate processes. In comparison to traditional development, where extensive coding is required, low-code development allows insurers to create custom solutions quickly. This process involves less coding knowledge and enables minimal coding, which significantly reduces time and costs.
When comparing traditional development to low-code and no-code platforms, several factors stand out. Low-code tools speed up application development, typically reducing it to days or weeks, whereas traditional development can take months. Additionally, low-code environments require only limited custom coding, making them more accessible to non-technical users such as business analysts and citizen developers. These platforms also come with features like drag-and-drop interfaces, which simplify the process for users with minimal coding skills.
By using low-code platforms, insurers can develop enterprise-grade applications much faster. Whether it's building web applications, cloud-native applications, or enterprise applications, low-code development provides the flexibility and speed needed to meet evolving business needs.
Automation, AI, and Workflow Optimization
Low-code platforms are revolutionizing business process management by enabling the automation of complex tasks, such as claims intake, underwriting, and risk management. With AI and natural language processing capabilities integrated into low-code application platforms, insurers can further streamline operations, reduce errors, and enhance decision-making.
Incorporating AI-powered low-code development tools allows insurers to build smarter, automated systems that can handle repetitive tasks and complex business applications. Additionally, the use of workflow automation tools helps insurers create enterprise applications that optimize internal processes, reduce manual errors, and enhance overall efficiency.
Market Growth and Adoption of Low-Code Platforms
The low-code development platform market is growing rapidly and is expected to reach $65 billion by 2027. Insurers are increasingly adopting low-code and no-code development platforms to modernize their operations. By 2025, 70% of new business applications in insurance will be developed using low-code or no-code platforms, compared to less than 25% in 2020.
The rise of low-code application development is driven by insurers' need for digital transformation and the ability to quickly adapt to market trends. The flexibility offered by low-code platforms allows companies to modernize legacy systems and integrate third-party systems without costly and risky replacements.
Democratization of Development and Business User Empowerment
One of the most significant advantages of low-code development environments is that they empower business users and citizen developers to create applications without needing technical expertise or advanced coding skills. By 2024, it's expected that 80% of technology development in insurance will be led by non-IT professionals, many of whom will leverage low-code platforms to solve business problems.
With drag-and-drop features and visual modeling tools, low-code platforms enable business analysts and other domain experts to create custom solutions tailored to their organization's specific needs. Reusable components and visual development interfaces further streamline the process, enabling rapid app creation without the need for writing code from scratch.
Enhancing Customer Experience and Personalization
Low-code platforms also play a crucial role in improving the customer experience. Insurers can use low-code tools to quickly develop web applications and customer portals that enhance engagement and provide personalized services. The visual nature of these platforms allows for real-time collaboration tools and rapid iteration, ensuring that business applications are constantly optimized to meet customer expectations.
For example, insurers can use low-code development platforms to build personalized policy recommendation tools, chatbots, and self-service apps. These digital solutions allow insurers to offer fast, efficient, and relevant services to their customers, improving satisfaction and retention rates.
Integration, Flexibility, and Competitive Advantage
Low-code development platforms offer unparalleled flexibility in terms of integrating with existing systems, including legacy systems. This allows insurers to modernize without the need for costly replacements. Low-code platforms also enable insurers to build custom solutions for different markets, such as specialized underwriting tools or claims processing systems.
The ability to adapt quickly to regulatory changes or market shifts gives insurers a significant competitive advantage. For example, insurers can configure and deploy enterprise applications in response to new regulations or product launches in a fraction of the time it would take with traditional software development methods.
Summary
As we have explored, low-code development platforms are revolutionizing the insurance industry, driving digital transformation, improving operational efficiency, and empowering business users to take charge of app development. These platforms reduce the need for coding knowledge, enable rapid development cycles, and allow for seamless integration with existing infrastructure.
By using the right low-code platform, insurers can not only speed up the application development lifecycle but also innovate faster and meet evolving business needs. From business process automation to improved customer experience, the benefits of low-code are clear. Don’t let your company fall behind in this technological evolution.
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