Debunking the 7 myths about digital transformation in insurance
We live in exciting times. Things that sounded like science fiction just a decade ago are becoming a reality. Drones deliver our groceries, robots handle repetitive tasks, and the world is becoming increasingly digital.
Yet, those of us working in the insurance sector has been left behind. Despite all the talk about digital transformation, we still find ourselves dealing with paper, PDFs, and manual processes.
Code vendors are now turning towards one of the main pain points in document-heavy enterprises – upgrading the way we collect data from our customers.
Why is this happening, and what can be done about it?
Transforming paper forms and manual processes into fully digital customer experiences is no small achievement.
First, there is the sheer scale of the task. All core insurance processes, from onboarding to policy renewals and claims processing, still often rely on customer inputs that are collected in archaic and outdated ways. And despite the deceptively straightforward nature of digital transformation, the complexity of attempting such a project in an insurance company is truly astounding.
At the same time, insurers must catch up quickly and figure out a way to replace paper and static forms, deliver top-notch experiences and streamline data collection at scale, often on a tight budget.
Thanks to no-code platforms, we’ve got some good news – transforming paper forms, and manual processes just got much more manageable. For the last couple of years, no-code and low-code technologies have been making waves in the enterprise application development space. And no-code vendors are now turning towards one of the main pain points in document-heavy enterprises – upgrading the way we collect data from our customers.
Here are seven myths about enterprise digital transformation that no-code platforms finally put to rest.
Myth 1: Digital Transformation HAS to be expensive
When we say expensive, we mean REALLY expensive. When you have thousands upon thousands of processes to digitize, you’ll need an army of developers or a seven-figure budget if you prefer to outsource the development.
There is a common belief that digital transformation is accessible only to those companies willing to allocate multi-million dollar budgets and dedicate years of effort to such company-wide initiatives.
But this is not entirely correct. You can (and you should) start small. Digital transformation can happen in one line of business, one product, one department at a time. Once you have started and can show some traction, getting the buy-in you need to commit to an enterprise-wide rehaul of all customer-facing processes is much easier.
No-code platforms that feature components purpose-built for the insurance sector cut costs even further since you can create fully functional interactive processes and eApps with a fraction of the resources necessary to develop a similar process from scratch. Moreover, SaaS solutions can be scaled easily, empowering insurance carriers to grow their digital footprint as needed.
Myth 2: Integration with core and legacy systems is always painful
CIOs usually have a love-hate relationship with their core legacy systems. Nothing is trickier than orchestrating customer-facing front ends that must be interactive, fully digital, and omnichannel with back-office and core systems written in COBOL and simply not built to work with modern technologies and interfaces.
However, no-code vendors understand the difficulties posed by legacy systems and know how to make integrations easier. With a no-code platform, it is possible to build a scalable system that works with your unique core system and your particular tech stack, not against it.
Myth 3: Orchestrating 3rd party integrations will be a hassle
Regulations are another thing that makes digital transformation in insurance so much “fun.” Any form used to collect customer inputs must include extended functionality such as legally binding eSignatures, authentication, KYC and AML checks, and sometimes even secure payment gateways.
Customers expect a seamless experience, and they don’t want to be slowed down by due diligence.
Third-party integrations are a must. One more advantage of no-code platforms is that all the integration you may need can be centrally orchestrated and managed from a single dashboard.
Myth 4: Transforming manual processes will take months
Transforming manual processes into digital front ends is a lengthy process – it often takes months to complete a single digital eForm or eApp. Agility is not possible; once your digital product is released, it quickly becomes a new legacy, and making necessary changes and optimizing will be a continuing struggle.
With a no-code platform, this is no longer the case. Digitizing any process takes days, not months. Making changes, optimizing, adapting your forms to new channels, and scaling up thousands of processes is significantly accelerated, handled by a small internal team.
Moreover, ready-made components make it a breeze to design even complex processes, such as, for example, vehicle accident claim applications.
Myth 5: SmartPDF and eSignatures = Digital Transformation
There is no argument that a smart PDF that can be completed digitally on a computer screen is much better than a paper document. But let’s be honest – it is not enough. Anyone who has ever tried to fill in a PDF form on mobile can attest that the usability of a smart PDF is not all that great.
The digital experience that your customers expect involves so much more than simply converting paper documents into a digital format.
Slapping an eSignature on a PDF is a big step forward from a paper document sent by fax. But it is still worlds away from a digital experience your customers have come to expect.
Myth 6: Hands-on Maintenance is a Must
You could ask your engineers to implement changes every time your marketing or legal compliance department requests it. But to be honest, this is not the best use of your time. So why not free your engineers to concentrate on the core product and functionalities?
Creating forms is necessary, but it shouldn’t necessitate removing valuable team members from business-critical tasks, especially when drag-and-drop no-code builders are available.
Myth 7: “We Did Digital Transformation”
Since technology never stops evolving, digital transformation is, by definition, never finished. There is always the next step. The things you create today will inevitably become outdated tomorrow.
So how can you make sure that your efforts do not go to waste? The key lies within the business logic. With a no-code platform, once you understand what information you need from your customers and once you map out the process, you can quickly transfer it to any digital format that exists today or will exist tomorrow.
With a no-code platform, you can quickly transfer your data collection logic to any front-end technology.
For example, if today you are asking your customers to input personal data via a mobile-optimized form, tomorrow you can transfer that business logic with a click of a button into a chatbot, a voice assistant, or whatever new technology comes next.