Low-Code/No-Code in Your Insurance Solution Toolbox
No doubt, low-code no-code technologies have taken off within the insurance industry. These productivity development tools are no longer just theory, half-baked, or limited in features, functionality or application. Today, they are widely accepted by many insurers where they have included them as part of their development tool shed, especially if they find themselves on a digital transformation journey.
What are Low-Code/No-Code Tools?
Low-code/no-code (LCNC) tools may have led to some confusion in the market – similar to digital, it’s become a popular, overused “buzzword”. In fact, LCNC tools are not about code at all – they truly are about WHO can use them – and at the end of the day, the focus is on the business.
LCNC tools can be found as standalone, horizontal industry tools leveraged by companies across many industries. LCNC tools can be found within the insurance vertical, not surprisingly, in digital suite solutions. These tools, coupled with a digital suite, offer greater agility, reduce complexity, decrease costs and improve speed to market. They are designed for insurers to build digital solutions that help extend core system functionality throughout their insurance value chain – policy holders, agents, brokers, MGAs, TPAs, eco-partners, and even their own employees. The more beneficial insurance digital suites offer LCNC tools along with an API orchestration and integration engine, and pre-integrated ecosystem partners.
What are the Benefits of a Low-Code/No-Code Toolset?
Both horizontal solution providers and insurance digital suite providers offer the identical benefits – build software faster and easier with low costs, which have been the holy grail since the dawn of software development.
But the key difference between the horizontal industry vendors and insurance digital suites of LCNC solutions lie within the ease, the speed, and the cost of developing software specific for insurers. Digital suite solution providers bring not only digital experience but are entirely focused on understanding insurance.
Over short periods of time, digital suites with LCNC solutions are typically easier to use as they become the tools used to build UIs for headless integration with core systems. Furthermore, insurance digital suites are naturally designed to work with core systems – from creating agent and customer journeys and UIs, to connecting core systems with microservices and ecosystem partners, a digital suite LCNC solution offers insurers faster results as insurance knowledge and accelerators are pre-built within these products.
Finally, when insurance digital suites and their LCNC tools are licensed with core software products or core software suites from the same vendor, the license and maintenance for the digital toolsets becomes significantly cheaper. Theoretically, even as a standalone solution, digital suite LCNC tools tend to be less expensive than cross-industry vendor tools.
When are LCNC Tools Right for an Insurer?
- Digital Transformation – Insurers embarking on a digital transformation journey will find LCNC tools beneficial to developing solutions. Think about creating your future UIs, that integrate with core systems or legacy platforms, easily and quickly rolling out new products or lines of business such as on-demand products, offering new processes to your insureds or agent/broker community, refreshing your online brand and understanding your customer usage – LCNC tools can provide all this while empowering your business users to own these processes without relying the completion of lengthy IT projects.
- When evaluating a digital suite, a critical component is ensuring a LCNC is made for the business. Insurers who have licensed a core solution sometimes turn to their vendor partners to subsequently license their digital suite. But don’t be fooled – not all digital suite solutions are built alike – nor do they truly provide a LCNC toolkit. Also look for one with an integration / API development hub and an ecosystem partner network of pre-integrated third-party services. In some cases, insurers may elect to look outside of their Core vendor and look for a digital suite designed to integrate with other core solutions and legacy platforms.
- Digitally enable a legacy system – For those insurers who opt to modernize their legacy system in lieu of a modern core solution, a digital solution leveraging LCNC tools are a great fit to help insurers digitally enable their legacy core system and provide their customers and distributors with a modern digital technology stack on top of their customized legacy system.
In any scenario, LCNC tools for insurance are clearly becoming a pervasive tool across the market to help them reach their digital transformation goals or to achieve better returns on their development efforts.