In this piece Root Co-Founder Jonathan Stewart asks the question; to Low Code, Or No Code?
The insurance industry is undergoing a transformative shift, with re/insurers facing the urgent need to stay ahead of the accelerating pace of change particularly when it comes to new digital distribution and partnership channels. Companies are quickly realising that their competitive survival depends on digital modernisation in order to be able to adapt and remain relevant.
To thrive in this dynamic landscape, businesses need to invest strategically in technology solutions that not only accelerate development but also future-proof their operations and value propositions. In this context, the low-code approach to technology architecture emerges as the more advantageous strategy over no-code development – offering much more flexibility and control.
Here’s why:
Understanding the Key Differences: Low-Code vs. No-Code
The distinction between low-code and no-code lies in the level of customisation and control they offer to insurance product teams. Low-code platforms empower developers to use code and logic to more precisely match the exact intentions of their product manager. On the other hand, no-code platforms restrict customisation and limit their usability to less complex and more generic solutions, so forcing product managers to compromise on the degree of tailoring they can deliver for customers. No-code is not able to cater for the edge-case, of which there are many in insurance.
This is a key difference in a world where insurers need to deliver more and more personalised and tailored solutions to a much more demanding, digitally savvy customer. Quite simply, consumers are now demanding that insurers make better use of the modern data and tools that are available to them to deliver innovative solutions that are easier to buy, contextually relevant and dynamically priced to reflect their specific circumstances and risk. One size fits all frankly no longer cuts it.
APIs: The Glue that Unites the Ecosystem
APIs act as the “glue” that brings together various stakeholders, enabling seamless data exchange and collaboration. They open up the potential for re/insurers to access a myriad of alternative data sources, specialised functionality and distribution channels, providing the opportunity to differentiate and ensure a competitive edge in the market.
Low-code platforms are designed to work well with APIs, making it possible for developers to quickly assemble innovative new value propositions that leverage the very best of new applications and data sources from across the ecosystem. In an API-led ecosystem, technology
solutions need to be flexible and adaptable and accommodate new APIs, services, and partners to cater for any edge case. Low-code platforms excel in providing this flexibility, allowing developers and product teams to give maximum effect to their creativity and ability to rapidly prototype, experiment and ultimately remain ahead of a rapidly evolving landscape.
How to Go Low: Start small, aim high
Starting small, with the ultimate aim of going big, is the best way to integrate a low-code platform like Root into a business environment. Begin with small-scale pilot projects to test the low-code platform’s capabilities and prove its value.
This approach allows the re/insurer to learn and make adjustments before rolling out the solution more broadly. As the organisation gains confidence and experience with low-code, the use cases can be expanded to more complex and critical business processes. Gradual scaling allows for risk mitigation and ensures that the platform’s benefits are fully realised without disrupting core operations.
Pilot projects are generally aimed at new product launches, although simply addressing some of the challenges faced by business users and IT teams in developing and maintaining their traditional systems may also present a good test case. This helps them to identify the areas where low-code can bring the most significant impact and prioritise use cases accordingly, starting with processes that are repetitive, time-consuming, or require frequent updates.
For a successful implementation, it is essential that any silos that too often exist between IT and business teams are overcome – low-code development aids close collaboration and communication between these teams as it often involves business users playing a more active role in application development.
The Path Forward: Minimising Risk and Maximising Potential
The acceleration gap in the insurance industry demands simplified and efficient app development to bridge the digital transformation divide. Pioneering low-code platforms are at the forefront of revolutionising development, empowering re/insurers to access new digital capabilities, distribution channels and partnerships, including embedded insurance, and reaping the benefits of enhanced productivity, analytics and agility.
In a complex ecosystem, accumulating technical debt can hinder future developments and integrations. Low-code platforms which provide the infrastructure on which key differentiation in product development is built, eliminate core technical debt incurred on legacy or self-built systems by outsourcing code quality, security, and maintainability to the platform provider.
Root’s low-code architecture offers a viable alternative to traditional technology procurement and development, granting users control over their data and unique selling points. At the same time, as technology continues to evolve, embracing the low-code approach ensures that re/insurers are well-prepared for the future, with the capability to meet the ever-changing demands of the insurance landscape.
More here; https://rootplatform.com/
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