Strategic investments in technology amid cost containment efforts in insurance
The U.S. insurance industry is currently navigating a pivotal moment of transformation, balancing cost containment with strategic investments in technology.
The push towards digital transformation
Insurers are rapidly adapting to technological trends to reshape their business decisions. This shift encompasses leveraging artificial intelligence (AI), modernizing legacy systems, and moving data and infrastructure to the cloud. Such transformation is crucial for insurers to leapfrog competition through continuous innovation and stay ahead in a rapidly evolving market.
Economic and environmental pressures
Recent years have brought a series of short-term crises and long-term trends that profoundly affect the insurance industry, including social, technological, economic, environmental, and political challenges. These factors have led to market reconfiguration and operational disruption, demanding a more agile approach from insurers.
The challenge of performance and relevance
The insurance industry has struggled with disappointing performance and declining relevance in recent years. For instance, in the United States and Europe, nominal GDP growth has outpaced premium growth, indicating that insurers haven't been growing at the same rate as the economies in which they operate. This situation calls for a strategic reshaping of the industry, focusing on cost-efficient technologies to enhance performance.
Embracing no-code technology in the U.S. insurance industry
Despite economic headwinds and new competitors, insurers who have invested in strong digital foundations are better positioned to weather the storm and capitalize on new opportunities. The focus for insurers in 2024 is to innovate more with less – more agility with less money, faster processes with less risk.
In the competitive landscape of the U.S. insurance industry, the strategic investment in no-code technology is becoming increasingly essential, especially in the context of cost containment and digital transformation. No-code technology offers a pathway for insurance companies to adapt to the rapidly changing market demands while maintaining cost efficiency.
The shift to no-code platforms
No-code platforms are revolutionizing the insurance industry by allowing business users to engage directly in the development of digital products without the need for extensive coding knowledge. This shift enables insurers to quickly adapt to market changes and customer needs.
For example, VGM, a major player in post-acute healthcare, achieved a remarkable digital transformation with a no-code platform. Initially planning a five-year digital journey, VGM, with EasySend, condensed this into a three-month venture. This rapid digitalization led to the creation of eight digital processes independently, revolutionizing their approach to healthcare insurance. The transformation significantly reduced operational costs by 30% and streamlined their sales cycle.
For a detailed exploration, you can read more directly from the source: EasySend Customer Story: VGM.
Cost-effectiveness and efficiency
One of the key advantages of no-code technology is its cost-effectiveness. Traditional IT development can be costly and time-consuming, but no-code platforms reduce these expenses significantly. They also enhance efficiencies within the organization by enabling faster project completion and reducing workflow bottlenecks.
Breaking down silos
No-code technology reduces silos within organizations. By making platforms more user-friendly and accessible, a broader range of team members can contribute to the development process, improving the quality and effectiveness of the final product.
Integration with legacy systems
Legacy systems in the insurance sector have traditionally been a barrier to rapid innovation due to their complexity and costliness to update. No-code technology offers a solution to these challenges by being more adaptable and user-friendly. It enables easier updates and modifications, addressing the limitations of legacy systems.
No-code platforms offer flexibility in integrating with existing legacy systems. They provide insurers with the option to leverage their current systems while utilizing no-code platforms for front-end capabilities and API integrations. This approach allows for a gradual transition from legacy systems, making the process more manageable and less disruptive.
As we approach 2024, Gartner estimates that 65% of all app development will be performed through no-code technology. This trend signifies a major shift in how insurance companies approach technology development and underscores the importance of adopting no-code platforms to remain competitive in a rapidly evolving digital landscape.
For U.S. insurance companies, embracing no-code technology is not just a strategic investment in digital transformation; it's also a cost-effective approach to staying agile and responsive in a dynamic market. By leveraging no-code platforms, insurers can drive innovation, break down silos, integrate with legacy systems more effectively, and ultimately deliver enhanced services to their customers.
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