Economic uncertainties, technological advances, and demographic changes are shaping the insurance industry and calling for a high degree of flexibility. The rapid development of Artificial Intelligence (AI) and the Internet of Things (IoT) is revolutionising how insurers operate and interact with customers. At the same time, societal changes are forcing insurers to rethink their offerings and processes.
In this dynamic environment, comprehensive solutions are needed to not only address individual problems but also enable a holistic transformation.
Challenges and solutions
To successfully navigate this change, insurers must become more agile to respond quickly to new demands. Digitisation and technology play a central role in this. Two scenarios exemplify how low-code platforms can support digital transformation.
Efficiently automating processes
Many business processes in the insurance industry are still manual, time-consuming, and error-prone. From claims processing to customer communication, numerous processes can be standardised and automated. This not only reduces manual efforts but also minimises errors and ensures consistent high quality.
Agile and structured approaches to requirements gathering and an understanding of process optimisation form the basis for digitising workflows. The standard components of a low-code platform support the mapping of individual processes, allowing established ones within the company to be maintained or optimised. The versatility of such platforms enables insurers to respond more efficiently to market changes and directly optimise workflows on the platform, significantly shortening time to value. This flexibility is crucial in an industry that is constantly evolving, where agility is a decisive competitive advantage.
By automating processes, insurers can increase their efficiency and reduce operating costs. Thus, process automation becomes a central component of a successful digital transformation.
Overcoming the limitations of legacy systems
Legacy systems are widespread in established insurance companies. They are rigid, costly, and hinder adaptation to market changes. Additionally, they complicate the introduction of new technologies that are essential for competitiveness. Therefore, a structured approach to the gradual modernisation of these systems is indispensable.
The first step is a comprehensive business analysis to evaluate existing systems and create a modernisation roadmap. Here, agile methods play a central role in advancing modernisation in manageable, flexible steps. Best practices in software development ensure that new solutions are of high quality and future-proof. This is not just about clean code, but also about sustainability and maintainability.
Low-code platforms act as a catalyst by enabling the rapid development of business applications that seamlessly integrate into existing systems. Another advantage of low-code platforms is the drastic reduction in maintenance efforts through the use of pre-built, tested components and the homogenisation of applications. Regular platform updates prevent these applications from becoming new legacy systems that would have to be replaced again.
The path to success: a structured approach
Low-code platforms are particularly well-suited for software projects where efficiency and speed are paramount and where pre-built components can be used optimally. This includes the development of standard and routine applications, the migration of outdated platforms like Lotus Notes, as well as the digitisation of paper-based or media-disrupted processes. Projects with tight deadlines or high user-friendliness requirements also benefit significantly from the flexibility and rapid implementation capabilities that low-code offers.
However, the success of such initiatives largely depends on selecting the right low-code platform. At Zühlke, this process begins with a detailed analysis of business requirements. It is essential to comprehensively consider both the IT needs and the demands of the business units. Only by carefully selecting the platform can it be ensured that the implementation provides the maximum benefit in terms of cost savings and faster time to value.
Conclusion
Successfully navigating change in the insurance industry requires a holistic approach, where low-code platforms are used as part of a comprehensive transformation initiative. By combining business analysis, customer experience, software craftsmanship, and agile methods in the use of a low-code platform, insurers can sustainably digitise processes and modernise their systems to remain competitive in the long term.
This article was first published as part of the Leipzig 2024 Insurance Forum.
