Insurers are constantly challenged to develop new product offerings as fast as possible. This rapid development and steep competition in the marketplace has sparked the need for technology and tools that make innovation easier than ever before. The solution? Low-code development platforms.
By 2024, low-code application development is estimated to account for more than 65% of application development activity. While low code used to be a “nice-to-have” feature, it is now a must-have for insurers to grow and compete today and in the future.
But before a carrier can dive into the world of low code, they should first have a basic understanding of its capabilities, benefits, and the ideal uses for this modern development solution.
What is Low Code?
Low code has been formally defined as “a visual approach to software development. With low code, you can abstract and automate every step of an application’s lifecycle to streamline delivery of a variety of solutions. By breaking down traditional silos of business and IT (promoting continuous collaboration), your organization can develop solutions that meet the needs of your business.”
In simpler terms, the primary appeal of low-code development tools is that they use graphic and visual user interfaces instead of traditional hand-coded computer programming. This ultimately means that practically anyone can help to develop new technology applications, and insurers aren’t solely reliant on highly-skilled developers for product builds and updates.
Benefits of Low-Code Solutions
The central benefit of low-code development platforms is that they allow carriers to quickly respond to market needs by reducing the need to define and maintain products through programming. Low-code tools increase the resource pool for product development as many low-code toolsets are geared toward non-technical resources.
At a more granular level, low-code solutions can benefit insurance carriers — and really any organization — in the following ways:
- Allowing faster speed to market through configurability
- Creating little to no dependency on programming/coding changes to support product definitions
- Creating a bigger resource pool based on the skill level needed to develop using low-code tools
- Reducing the cost and effort required to develop and maintain products
- Providing a faster resource for onboarding
- Allowing carriers to redirect more technically-skilled resources to focus on innovation rather than maintenance and product development
When is Low Code the Right Solution?
To put it bluntly, low code is always the right solution. Most low-code tools are sophisticated enough that they provide carriers the capabilities they need to develop products they’re excited to go to market with. And for the tools that aren’t as advanced, the solutions are open enough to allow for exceptions or product extensions that give carriers ultimate control over their product definitions.
Specifically, there are a few ideal use cases where low-code development platforms should be the default solutions. Those scenarios include:
- When evaluating a digital suite
- Digitally enabling a legacy system replacement
- Accelerating digital innovation and transformation
- Reducing IT backlog and increasing responsiveness
- Reducing dependency on hard-to-hire developers and their technical skills
- Enabling citizen developers to improve internal processes
- Protecting against technology churn
How Duck Creek Thinks Low-Code Platforms Will Transform Insurance
At Duck Creek, we understand that low code has become a required tool in any insurer’s arsenal, both to compete today and tomorrow but also to meet the needs and expectations of P&C insurance customers. Today’s consumers not only expect coverage that fits their needs, but also a user experience that meets them where they are in their time of need.
P&C insurance customers have come to expect a similar experience when using applications, regardless of intention or industry. To succeed in the crowded insurance marketplace, carriers must deliver the products, services, and experiences that are as seamless and intuitive as possible. This can be achieved simply with low-code development tools — this is true competitive advantage.
With low-code tools, carriers can try, and fail – quickly – to better see what works and what doesn’t in the market. This helps improve targeting and empowers carriers with solutions to separate themselves from their competitors, delight their customers, and create products that keep customers coming back for years to come.
