The Insurtech disruption is undeniable. With the wave of platforms hitting the insurance market almost every single day, traditional businesses are caught off guard, and there are other pressing the acceleration pedal to achieve digitalization at the eleventh hour. Can low-code platforms enable faster digital transformations? Can they really build applications and portals 10X faster? Find out with this blog!
The Need for Digitalization
Customers today need immediate resolutions; they demand digital experiences on the go. When an insurer fails to deliver an enhanced experience, the unsatisfied customers knock on the competitor’s door – all it takes is a few clicks, and they’ve already switched the brand. That’s how it is.
To that point, customer experience is one part that digitalization addresses, but there are other benefits like reducing the underwriting and claims-processing costs. Companies save as much as 30% time on claims-processing with modern platforms and also witness a policy growth of over 260% (as reported by OutSystems).
With such a clear picture about what companies can gain, why are they still being hesitant?
Well, these companies are so invested and immersed in their legacy systems that it seems impossible to get out of them completely. Regulation and compliance pose as major hurdles too.
Building a solution with a traditional coding approach to tackle these problems can take ages. Lengthy time-cycle in coding is a primary reason for insurance companies to shy away from embracing new technologies – but not anymore.
Low-code application development platforms empower you to build apps 10X faster. They allow for changes to applications in a matter of a few hours rather than months. That’s a remarkable improvement and a significant solution for insurance companies.
Here’s why low-code platforms are a hit: they require bare minimum coding, little investment in setup, deployment, and training. Your time to market the solutions (agent portals, underwriting apps, customer quoting tools, claims, etc.) is done way faster.
Some other benefits that are driving low-code platform-adoption:
Boosting Policy Profitability
Create digital solutions that engage your customers at the right touchpoints: mobile, web, chatbot, and more to sell the right policies, even cross-sell and upsell. Grow customer satisfaction scores along with your agent’s wallet.
Cut Underwriting & Claims-Management Costs
An OutSystems report says that around 40% of the insurers are looking for solutions that can decrease the underwriting and claims management costs. Low-code platforms automate manual processes – which cuts the processing time, and it reduces the support costs eventually.
More work can happen in less time as solutions can be similarly built for quotes, billing, underwriting, policy issuance, claim submission, and other processes. Such ‘zero-touch’ states (end-to-end automation with no manual intervention) and efficiency drive revenue growth.
Decrease IT Legacy Costs
Legacy platforms accumulated over the years create interdependencies of different systems, and thus forms a web, which is tedious to get rid of. Low-code platforms offer a breather hereby accelerating the building of solutions, and enabling migration in phases.
Open API framework too can help in integrating core systems and data sources – which in turn would enhance data transparency. With data standardization and migration done easily, IT legacy costs will start dropping gradually.
Gain a Competitive Edge
A report published by Insurance Business America states that around 30 million customers are willing to switch brands for a better experience. The lack of an omnichannel experience offered results in customer attrition – which is why it is imperative for insurance companies to stay ahead of the insurtech curve and bring better offerings to market even faster.
Digitalization with low-code platforms can help these companies to gain quick competitive advantage
Most of the players in the insurance segment are slow to transform for compliance and regulation-related reasons. Low-code platforms can help these businesses to customize the workflows, business logic and rules, application user interface in hours, instead of weeks and months – which pretty much improves the compliance rates.
Such scalable platforms also allow you to adopt new regulations quickly without spending much time on remodelling the platform or rebuilding it from scratch. This enables businesses to focus more on user needs, and become truly customer-centric.
There are customer case studies to help you understand how these platforms can help your business. Mind reading one? Want to check how your business problems can be solved using a low-code platform? Let us know and we will get back to you soon.
Fulcrum Digital has been enabling digital transformations for insurance companies by creating robust solutions for over 21 years. Fulcrum has also partnered with #1 low-code platform – OutSystems, for rapid application development.