Digital transformation continues to be a struggle in the insurance industry, even as 90% of insurance respondents to a recent survey recognised that in 5 years most insurance will be bought online. Although the sector has awoken to the potential of digital solutions and platforms, challenges around the successful implementation of technology persist.
A significant reason for this is internal resistance, stemming from memories of opaque technological systems which seemed to cause more problems than they solved: legacy tech. The inflexibility of legacy tech has left insurers less equipped to respond to the evolving needs of the modern economy.
However, recent advances in technology have finally enabled the kind of flexibility that previous solutions lacked. For the first time, stakeholders don’t need a detailed understanding of code to create new products with technology.
In this article, we’ll explore the full value of no-code technology in insurance, summarising the critical insights from Instech London’s 2021 No-Code Low-Code Report.
Firstly, we need to define what no-code software is. In brief, no-code technology refers to any digital system that helps to create new products, platforms or services, without requiring the user to have an understanding of coding or tech development.
In insurance, no-code technology has a multitude of valuable use cases. For example, underwriters at MGAs or insurers can rapidly create and customise policies, duplicating sections that are relevant to multiple customers whilst personalising only the elements of the policy that most require their attention.
Instead of drafting every new policy from scratch, underwriters immediately increase the number of policies they can draft and reduce tedious duplicate work at the same time. No-code technology has the potential to help insurers do more with less expenditure.
So, what’s holding insurers back from investing in no-code technology? Why is current legacy technology such an issue for the sector and what can be done to overcome these challenges?
In decades past, legacy technology was once touted as the promising solution that would make insurance seamless, cheaper and reactive to market conditions. According to Instech’s report, these scars persist, resulting in enduring cynicism across the industry.
But there are other problems compounded by legacy technology that continue to hinder insurers’ successful transition to the widespread use of no-code solutions:
Updating legacy technology is expensive and complicated, leading stakeholders to believe that this is a feature of all technology - even when it isn’t
Internal attachment to custom-built systems leads businesses to stick with the technology stacks they currently have - regardless of a lack of efficiency
Business users are focused on their own roles, and don’t feel that they have the bandwidth or expertise to be involved in software development projects - leading to low engagement with technology in general.
Incredibly, no-code technology has the potential to address these concerns, provided insurers can recognise the opportunities it presents for their businesses.
The Instech report points out that no-code technology itself isn’t new: programme suites like Microsoft Office and Google Drive have facilitated document creation without code for decades. However, modern solutions offer cloud-based microsolutions, enabling users to easily update, modify or replace small components of their technology as necessary.
As such, no-code technology is cheaper to update than legacy technology and has customisable functionality. Furthermore, the ease with which the technology can be deployed can counter concerns that business users lack the bandwidth to take ownership.
Gartner estimates that 65% of all app development will be performed through no-code technology by 2024.
Instech outlined the business value of no-code technology, identifying the most significant benefits:
Reducing cost, creating an environment where testing, trialing and discovery drive growth
Providing iterative capabilities to departments, encouraging experimentation
Enabling industry experts to actively design the systems in ways that will make the biggest impact to their professional functions.
But insurance companies will need to learn to embrace no-code platforms if they hope to benefit from the opportunities afforded by modern technology.
Derek Hill, COO of INSTANDA, offered two tips to insurance companies looking to overcome internal hurdles and make the most of the no-code opportunity:
Internally align on what the business’s ambitions are and then apply that unified understanding to procurement, compliance and IT processes
Set up a digital Centre of Excellence, composed of several business users that are primarily responsible for maintaining standards and the successful launch of the project within a set timeframe.
Thanks to no-code insurance platforms like INSTANDA, insurers don't need to invest precious time or resources to find highly expensive dev expertise every time they want to launch a new product. INSTANDA’s no-code platform does the hard work, providing stakeholders with quick access to an easy-to-understand interface.
Our no-code technology is designed to liberate underwriters, brokers and MGAs from the historic risks associated with building out new products. We have a proven track record of delivering business-relevant configuration for insurance providers across sectors.
By using one provider, insurers can ensure all team members benefit from a single, unified version of the truth as they help their businesses to grow dynamically in the years to come.
For insurers looking to stay competitive and relevant to customers in the coming years, selecting the right digital platform will be critical. By partnering with a provider that places no-code technology at the centre of its design, insurers of all kinds can react proactively to the needs of the market, driving future business and growth prospects.
Get in touch today to discover how INSTANDA can realise your insurance ambitions with an easy-to-use, no-code technology platform.
Kick-start your journey by requesting a demo of INSTANDA.
F2X GROUP LIMITED is registered in England and Wales, no. 05236974, registered office: 9/10 The Crescent, Wisbech, Cambs, PE13 1EH