Accelerate Insurance Claims Digital Transformation with Low-Code Platforms
Modernizing core claim systems can be inefficient and costly. Many core system projects fail to meet their stated business goals and often take years to implement. As a result, leading insurers are embracing low-code platforms with the compelling ability to accelerate development cycles to months instead of years. Buyer beware, however, as not all low-code platforms are created equal... Insurance companies should consider the needs of the organization, including infrastructure, architecture, dev processes and desired user experiences, when deciding which platform to choose for a new technology landscape.
The Forces Fueling Change
Driving the need for insurers to transform operations across the business — and more specifically claims handling — is the influence of larger macroeconomic and consumer trends, including:
Digital Expectations
Consumers today are influenced by their experiences with digital native companies like Amazon and Uber. Convenient and user-friendly interactions in apps and online are driving demand for simplified, transparent and personalized experiences which increase ease-of-use and deliver instant results for both commercial and retail customers from insurers.
Workforce Challenges
An aging workforce along with shifting employee sentiment also present new difficulties for attracting and retaining talent. Additionally, new talent is younger, more virtually inclined and more familiar and comfortable with digital experiences.
Rising Costs
Hardening insurance markets, rising interest rates and inflation are driving increased frequency of claims, higher claim costs and extended claim cycle times. As a result, Insurers are focusing more on expense management and claims prevention.
These trends reflect shifting consumer expectations that must be managed for insurers to stay competitive in the marketplace. As a result, more insurers are feeling compelled to undertake digital transformations in claims organizations, with a new focus on operational efficiency and customer experience.
Low-Code Platforms Offer Solutions
Low code refers to software development that allows developers to create applications with minimal coding. Low-code developers use model-driven, visual language with drag-and-drop graphical interfaces to produce applications. These visual development capabilities along with automation enable developers to create applications with user interfaces, logic and data integrations much faster than traditional development tools. Plus, the user-friendly design makes them more familiar and approachable for employees with experience using app-based programs.
One of the most powerful capabilities of low-code platforms is being able to provide an extension to core backend claims systems without disruption. New features and frameworks can be implemented without impacting business operations, allowing more freedom for companies to find digital solutions to problems. Potential extensions include:
- Workflows for claims
- An orchestration layer
- Integrated partner capabilities and ecosystem
As a result of this versatility and ease-of-use, low-code platforms solve many of the new challenges facing insurers, from adopting to the new needs of a digital-native workforce to lowering operating costs. However, an ideal platform still needs to be layered into the claims ecosystem to create the ideal claim experience. Thankfully, there are several solutions available to help companies ensure that all business and customer needs are met. Some low-code platforms, like Unqork and Appian, offer extensive capabilities out of the box specifically for claims, while other market leaders, like Mendix and Outsystems, take a more customized approach to managing the unique needs of insurers and create more personalized platforms for companies.
The Beginnings of a New Standard?
Just as insurtechs were eventually accepted and adopted across the insurance industry, similarly low-code applications and platforms are leveling the playing field and accelerating the development of claims transformation in the ultra-competitive insurance marketplace. Insurers are becoming more motivated to explore new solutions beyond core platform replacement to create more customer-centric experiences and improve operations and claims outcomes with data-driven insights, and low-code platforms might offer the ideal solution.
