Thought Leadership | November 26, 2024
In an industry where agility and speed-to-market are critical, no-code and low-code insurance platforms are putting control back in the hands of life insurance carriers.
For years, the industry has been defined by legacy systems—rigid, costly, and notoriously slow to adapt. According to a Deloitte study on modernizing insurance product development, rolling out a new insurance product can take 12 to 18 months, while modifying existing coverage can take 3 to 6 months. These timelines are simply too slow for modern carriers to remain competitive.
With no-code and low-code insurance platforms, life insurance carriers can finally overcome these barriers, adopting a faster, more efficient approach to meeting market demands. Unlike legacy platforms, low-code and no-code solutions empower carriers to control updates, speed up time to market, and reduce dependency on development-heavy processes.
What Are Low-Code and No-Code Insurance Platforms?
Low-Code Insurance Platforms
Low-code platforms provide carriers with a development environment that uses visual, drag-and-drop elements to create applications and workflows, while still allowing for custom coding when needed.
With low-code, insurers can automate and streamline tasks, update processes, and introduce new products without relying solely on IT resources. Low-code for insurance combines flexibility and control, empowering carriers to innovate quickly and align their offerings with current market needs.
No-Code Insurance Platforms
No-code platforms, on the other hand, require no programming knowledge at all. They provide an even simpler environment than low-code, allowing business users to create, configure, and deploy using a visual interface.
For example, with a no-code insurance platform, a business analyst can make real-time changes to policies, adjust application workflows, or update rates independently – without the need for IT support
Together, low-code and no-code solutions represent a paradigm shift for insurance technology, transforming the industry with streamlined processes and agile solutions that allow life insurance carriers to innovate and adapt faster and more cost-effectively.
The Growing Need for Low-Code and No-Code in Insurance
Gartner projects that by 2025, 70% of new applications developed by organizations will use low-code or no-code platforms. This reflects a broader shift toward accessible, efficient solutions that enable faster application development across industries. In fact, the global low-code development platform market is predicted to generate $187 billion in revenue by 2030.
The shift toward low-code and no-code platforms is more than just a trend; it’s a strategic decision that empowers life insurance carriers to innovate and stay competitive.
Many insurance carriers today still operate with outdated systems that bring familiar challenges:
High Costs and Resource Allocation
Maintaining legacy systems is costly, often consuming 70-80% of IT budgets just to keep systems operational. These expenses leave little room for innovation, meaning carriers are often resource-constrained when trying to launch new products, update products, or streamline processes. Low-code and no-code insurance platforms offer a cost-effective alternative that significantly reduces the cost of getting new products to market or updating rates, questionnaires, or workflows.
Slow Speed-to-Market
Traditional systems hinder carriers’ ability to react swiftly to market demands, with product launches often taking 12 to 18 months and simple updates taking 3 to 6 months. This pace can result in missed opportunities and puts carriers at a competitive disadvantage. Low-code and no-code insurance platforms eliminate bottlenecks, allowing carriers to accelerate product development and respond to market changes faster, for a fraction of the cost.
Limited Control Over Updates
Carriers relying on legacy technology frequently depend on external vendors or IT teams for even minor adjustments, from changing question flows to implementing new compliance requirements. This reliance increases costs and timelines. By adopting low-code/no-code solutions, carriers regain control, enabling quick, cost-effective updates without needing vendor support.
How Low-Code and No-Code Platforms Give Carriers Control
With low-code and no-code insurance platforms, life insurance carriers are no longer bound by traditional, development-intensive systems. Instead, these platforms bring flexibility and adaptability that allow carriers to integrate new capabilities alongside their existing systems, creating a modular, measured approach to transformation rather than a disruptive “rip and replace” overhaul.
1. Faster Product Development and Agility
Low-code and no-code insurance platforms enable life insurance carriers to launch new products faster, respond to advisor feedback, and adapt to customer needs with minimal delay. This agility allows carriers to innovate faster and better meet the expectations of today’s consumers.
2. Better Advisor Feedback Loops
Carriers can respond to advisor feedback much faster. With low-code/no-code, updates—like customizing a questionnaire or adjusting an application flow—can be made within days. This agile feedback loop supports advisors, improves the customer journey, and gives carriers a competitive edge by providing a better end-user experience.
3. Incremental, Modular Transformation
Carriers don’t need to overhaul their systems all at once. No-code and low-code insurance platforms offer a modular, incremental approach, allowing carriers to introduce new capabilities piece by piece. This approach reduces risk and cost while enabling targeted innovation where it’s most needed.
4. Cost-Effective, Scalable Solutions
No-code/low-code insurance platforms typically use a SaaS-based model, meaning carriers can benefit from predictable, manageable costs. Maintenance, security, and compliance are built into these platforms, so carriers don’t have to allocate extra resources for these essential functions. Additionally, these platforms are scalable, enabling carriers to expand features and functionalities in step with business growth.
Embracing Low-Code/No-Code Platforms
As life insurance carriers face mounting pressure to modernize, low-code and no-code platforms offer a viable path forward. These platforms provide the agility to quickly introduce new products, streamline processes, and deliver improved customer experiences—all while minimizing reliance on traditional IT support.
Lavvi’s platform is purpose-built to give life insurance carriers the control, agility, and scalability they need in a rapidly changing market:
- Industry-Leading Configurability: Quickly launch new products or make updates without IT support. Lavvi empowers carriers to adjust product details, questionnaires, and rates in near real-time.
- 90-Day Implementation: Lavvi’s streamlined setup enables carriers to go live in as little as 90 days—accelerating time-to-market and maximizing market opportunities.
- Modular and Scalable: Lavvi’s platform is designed to enable carriers to invest in what they need today and scale seamlessly as their distribution strategy evolves.
Ready to Take Control?
For carriers ready to supercharge their distribution strategy, Lavvi is here to help you stay agile, reduce costs, and respond to market demands with speed and precision.