Digital transformation in insurance: Low Code technology

High operating costs, complex integrations, and manual processes that impact customer experience are some of the challenges insurance companies face. Does this sound familiar? You probably don't know about Low Code technology and its role in digital transformation yet.

When we talk about Low Code we refer to the possibility of creating applications without the need for high technical know-how or extensive code routines. A study carried out by Forrester Consulting states that 84% of companies use this technology to increase their competitiveness.

This type of development reduces pressure on IT resources, improves speed to market and involves the organization in the creation of digital assets. But how does it directly impact the insurance industry?

Gartner predicts that by 2025, 70% of applications developed by organizations will use No-Code and Low-Code technologies.

A viable solution to the challenges facing insurers

Adopting agile technological solutions that meet people's expectations is synonymous with "RETENTION AND ACQUISITION OF NEW CUSTOMERS". This is why this technology contributes to solving challenges such as:

Integration of legacy + core systems

Integration between legacy systems and core systems is often vital for a company but at the same time complex. Without the right technology, problems arise such as:

Difficulty in ensuring data security (due to its high volume).

High maintenance costs.

Lack of flexibility to make adaptations.

By adopting a low-code approach, you can improve operational efficiency by modernizing your IT infrastructure without having to completely transform it from scratch. It also allows you to easily integrate core systems with new software, improving data flow.

In this way, development and maintenance times are reduced, significantly reducing operating costs. This integration capacity ensures that your technological infrastructure can grow along with upcoming market trends and needs.

The global low-code app development platforms market size was estimated at USD 24.83 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 22.5% from 2024 to 2030.

Business Process Automation

Performing repetitive tasks, being aware of possible mistakes and imagining how each part of the project will turn out due to lack of resources, causes uncertainty and frustration.

“I don’t have a follow-up of the requests and the processing times are long.”

The operational agility of employees is compromised by the lack of technological resources. They waste time on manual tasks and customers wait for responses that take longer and longer to arrive.

How can we transform this unsatisfactory experience into a rewarding one?

By automating administrative tasks such as claims management. In this way, we speed up resolution times and obtain positive results in the processes that employees manage.

Customer experience
Do you know which are the most required solutions in the insurance industry?

Digital experiences with ease of use

Having visually attractive platforms

Providing quick responses to the user

If you know your customer very well or are aware of the latest trends, you know that your company needs to acquire tools that are more friendly to the end user. So, how do you raise the level of customer satisfaction? The answer seems obvious: digitizing their experience with easy-to-use applications.

Low code helps insurers optimize this experience in the shortest possible time, allowing for greater customization in the services and products they offer, such as quotation, pricing and conversion processes.

KPMG's "Insurance Transformation" study indicates that insurers that implement digital technologies can increase customer satisfaction by 30%.

What is the cost of NOT implementing low code in your company?

The answer can be summed up in a formula:

Manual and repetitive processes + Inefficient integrations = Loss of Competitiveness

Which translates into long-term economic loss for the company by not being able to retain customers by offering a poor experience. Keep in mind that large companies such as Banesco, Aon Corporation and General de Seguros, left behind traditional software development to migrate to a more efficient one such as Low Code. Always with the goal of continuing to be relevant in the industry.

One of the main benefits of this type of technology in the digital transformation of an organization is the guarantee of obtaining a fast ROI (in less than a year).

Now, the key question is: what are you waiting for to modernize your company?

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