{"id":61945,"date":"2020-12-03T13:54:30","date_gmt":"2020-12-03T18:54:30","guid":{"rendered":"https:\/\/staging.majesco.com\/?p=61945"},"modified":"2025-04-07T10:10:50","modified_gmt":"2025-04-07T14:10:50","slug":"facing-a-competitive-black-hole-the-diy-promise-of-no-code-low-code","status":"publish","type":"post","link":"https:\/\/staging.majesco.com\/?p=61945","title":{"rendered":"No Code Insurance Platform – The DIY Promise of No Code\/Low Code"},"content":{"rendered":"\n

We hate to wait. With the exception of the British, who stereotypically don\u2019t mind a \u201cqueue,\u201d most of us spend a great deal of time figuring out how to save time. We don\u2019t want to wait on hold for 20 minutes for customer service to pick up our call. We don\u2019t like long lines at the drive thru. If we have a home project, we don\u2019t like waiting on specialists to get the job done (even though they might do it better). We say to ourselves, \u201cJust give me YouTube and a hardware store and I\u2019ll do it myself.\u201d<\/p>\n\n\n\n

Waiting, however, isn\u2019t just about impatience. In insurance companies, waiting to make changes to customer experiences, products, technologies or services, let alone creating new ones that we can quickly and cost-effectively test in the market, is a \u201ccompetitive black hole.\u201d If we\u2019re given the choice to create something now, built easily with our own hands, or wait in the IT queue for the next few months or years depending on the backlog, we\u2019re liable to say, \u201cI\u2019d rather do it myself.\u201d<\/p>\n\n\n\n

So, we are caught in a conundrum. If we try to accomplish some things on our own, we may not have what it takes to get the job done. If we are over-reliant upon IT or developers to accomplish tweaks to our systems, we may lose out on a market opportunity or competitive edge. This is the short story of DIY insurance that has led to the explosion of no code \/ low code business dynamics.<\/p>\n\n\n\n

The burgeoning no code \/ low code technology space is leading the disruption and shift to the digital era of insurance.  Unfortunately, like other over-used \u201cbuzz words\u201d the use of no code \/ low code platforms has led to confusion on what they are.  The term is misleading because it is not about whether you code or not, it is about broadening the pool of people who can use the platform to build applications. Not only is the definition of the term confusing, but the real benefits to no Code \/ low Code aren\u2019t always fully appreciated.<\/p>\n\n\n\n

This month, Majesco will release its latest thought leadership report, Insurance Platforms: The Digital and No Code \/ Low Code Platform<\/em>. In our report, we consider digital insurance platforms<\/a> \u2013 core insurance platforms, digital insurance platforms and horizontal no code \/ low code platforms \u2013 in order to assess the use of no code \/ low code technology across the three different platforms and how they differ in creating value for insurers.\u00a0 In today\u2019s blog, we\u2019ll get a preview of the report by looking at perceptions. What do some industry leaders see as the potential value propositions behind no code \/ low code platforms<\/a>, as well as the overall benefits of a platform approach?<\/p>\n\n\n\n

Similarities and Differences: Definitions of No Code \/ Low Code<\/h2>\n\n\n\n

In a July 2020 Forbes article, Jason Bloomberg notes the following:<\/p>\n\n\n\n

\u201cIn the No-Code <\/em>corner are the \u2018citizen developers\u2019 \u2013 business users who can build functional but generally limited apps without having to write a line of code. The Low-Code <\/em>corner, in contrast, centers on professional developers, streamlining and simplifying their work \u2013 delivering enterprise-class applications with little or no hand-coding.\u201d<\/p>\n\n\n\n

These no code \/ low code solutions are offering new levels of usability, capabilities, and access to data and other technologies to create next-generation business solutions ranging from portals, to full enterprise-level solutions, to innovative new products such as on-demand or parametric products that require real-time data for continuous underwriting.  Too often, insurers are using a variety of disparate tools on a piecemeal basis, rather than looking for a platform that can support every step of their digital transformation journey, from portals for personalized experiences, to innovative new products and business models.  <\/p>\n\n\n\n

No code \/ low code platforms that can support this array of capabilities offer benefits for companies, including greater agility, reduced complexity, decreased cost, and improved productivity and speed.  Research conducted by OutSystems identified the key reasons companies cite for adopting no code \/ low code solutions, as reflected in Figure 1.  The top three reasons were the ability of these solutions to accelerate digital transformation (69%), reduce current IT backlog and Increase responsiveness (55%), and reduce dependency on high tech skills (40%).[i]<\/a>  With no code \/ low code, companies are getting more for less \u2026 faster!<\/p>\n\n\n\n

Figure 1: Key reasons for adopting low code solutions<\/p>\n\n\n\n

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In alignment with this, our Strategic Priorities<\/a> research highlighted that no code \/ low code platforms and digital experience platforms – which often use no code \/ low code – are emerging as a top priority to accelerate digital transformation.<\/p>\n\n\n\n

Gartner forecasts that low-code application platforms will account for 65 percent of all app development by 2024. This means the majority of apps created in 2024 will be developed using platforms and tools that provide turnkey ways to program.[ii]<\/a><\/p>\n\n\n\n

In addition, Forrester is forecasting significant growth of 40%-55%, as reflected in Figure 2.[iii]<\/a><\/p>\n\n\n\n

Figure 2: Projected low-code development platform market growth<\/p>\n\n\n\n

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Industry Analyst View<\/a> \u2014 Platforms and No Code \/ Low Code<\/h2>\n\n\n\n

Many of the prominent insurance industry analyst firms have been studying the rise of platform technologies and platform-based business models over the last 2 years.  Not surprisingly, there is a range of views, but with some commonality.  Key common descriptions include:<\/p>\n\n\n\n