Can No-code Software Really Drive ROI For Insurance Businesses?

Risto Rossar, (pictured) Founder and CEO, Insly, the low/no-code software platform for insurers, insurance brokers and Managing General Agents (MGAs) looks at the ROI on low code systems.

MGAs and insurance companies are under increasing pressure to shorten cycle times, cut costs, and improve customer outcomes. But achieving these goals is challenging, especially if you rely on outdated legacy systems and an abundance of manual back-office processes to complete core business tasks.

Most company owners realise that digital transformation can help them remedy operational bottlenecks, improve profitability, and raise customer satisfaction scores. However, many smaller firms, who perhaps don’t have technical product development skills in-house, may see insurance automation software as too complicated to integrate into their business model.

Or they may mistakenly believe that the adoption of insurance software solutions involves decommissioning their IT infrastructure and migrating all operations to cloud-based platforms.

For these firms, no-code insurance software solutions offer a potential solution, promising to remove the complexity of automating insurance processes for the first time. Incorporating easy-to-use drag-and-drop functionality, they help IT admin teams – and non-IT experts – develop automated workflows that can handle the breadth of back-office processes (such as claims handling and accounts reporting) with minimal need (or sometimes no need) for human input.

But some firms may be wondering what value they will see from introducing these tools? This article will outline some ways no-code insurance platforms can deliver ROI for insurers and MGAs, large and small. Plus, we’ll offer some tips on measuring your digital transformation’s success against your long-term company objectives.

Benefits of no-code/low-code vs off-the-shelf or customised solutions

Capabilities to build and launch products at speed

Insurance products include a host of variables, including premiums, renewal dates, and cover conditions. Coding all of these variations from scratch might take months or even years, which is far too long for companies looking to adapt to rapidly evolving customer demands and stay ahead of market innovation.

No-code offers an easier way to develop new insurance offerings. Fully-customisable product-building tools allow businesses to test and refine their products in weeks before launching to the insurance market. This flexibility enables insurers and MGAs to differentiate their offering and win valuable new business from customers looking for ideal-fit insurance policies.

No-code can be tailored to business needs

Legacy insurance software is expensive to maintain and upgrade to meet changing business needs. Research has shown that insurers allocate an average of 70% of IT budgets to maintaining outdated, out-of-the-box solutions. This is a vast, wasted expense when you consider that no-code solutions can integrate with existing legacy tools and help companies to evolve their systems and move towards fully-automated workflows on an incremental basis.

Less IT cost and risk to your business

Overhauling IT infrastructure can put insurance data governance and cybersecurity at risk, especially if critical information is stuck in inaccessible IT silos and disparate legacy systems. No code software tools remove this risk by harnessing cloud computing, which not only provides limitless data storage in the cloud – reducing IT overhead costs – but also automatically updates to incorporate the latest regulatory compliance protocols. So providers won’t ever have to worry about data governance risks.

Delivering value / Measuring ROI

Insurance software platforms automate every link in the insurance value chain, from product building to distribution, underwriting, to claims, and beyond. Furthermore, by using Robotic process automation (RPA), Machine Learning (ML), and AI to allocate and complete tasks, insurance automation tools ‘learn’ and provide feedback to help companies refine their automated workflows, to keep improving efficiency on an ongoing basis.

Automation relies on high-quality data to achieve its outcomes, so data analysis capabilities come as standard in no-code insurance solutions. As well as using this information to streamline operations, MGAs and insurers can also monitor the ROI of the technology itself. Here are some examples of key metrics to track when gauging the success of your low-code software solution:

● Time to coverage: Measure the customer onboarding journey and use automation to shorten the time to cover as much as possible.

● Straight-through processing rate: Evaluate the speed of claims handling, which can be improved by automating straightforward claims cases and minimising manual processing.

● Customer referral and retention rates: These metrics are a reliable indicator of whether your clients are happy with their experience. Automating customer communications (such as email renewal reminders) can help companies raise these scores.

Low-code/no-code insurance software accelerates industry change

Digitisation is fast becoming non-negotiable in the insurance industry and low/no-code tools are fundamental in driving this shift, with insurance experts predicting that they will make up 80% of insurance sector developments by 2025. These platforms make sense financially and practically. Plus,

their customisable features allow MGAs and insurers to shape their futures without compromise. It’s the best of both worlds, and the business benefits are proven.

About alastair walker 10540 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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