Over the past few years, the insurance industry has become more dynamic with digital-only insurers entering the market with new business models offering consumers and potential policyholders personalised insurance plans and dynamic pricing, according to Kissflow CPO Dinesh Varadharajan.
Keeping a competitive edge
To remain competitive, traditional insurance companies are now undergoing massive digital transformations. However, Mr Varadharajan does not think it is not enough.
He said, “Insurance companies see this technology as a layer above the business model. However, just creating a layer of technology above the business model and not changing it is not good enough to compete against InsurTechs.”
This is where low code/no code comes in. “What no code can offer is the path to transition,” he said. Low code/no code systems are able to create a layer which gives the same level of sophistication and flexibility insurers need to compete against digital native organisations without changing anything in the core system, he said.
When integrating new systems, core systems need to closely integrate with different tools. In this respect, some low code/no code products differ with features such as a pre-built integration layer with native connectors that can directly configure with existing products, he said.
Challenges insurers face in leveraging automation
The biggest challenge insurers face when leveraging automation, according to Mr Varadharajan, is having part of the systems automated and the rest on manual processes.
“If this is case, it will be extremely difficult to have a complete view of what is happening in the business. Unless every part of the business is automated and the data across all functions are interconnected, it is not possible to get insights over what is happening,” he said.
Other challenges included the changes automation would bring, as well as the issue of cyber security, he said.
“People are used to doing things in a certain way. When low code/no code tools are introduced, mindsets must be changed,” he said.