How to Eliminate Insurance Backlogs with Low-Code

Insurance backlogs such as claim processing and policy management delays can affect business operations and customer satisfaction. Low-code solutions provide a fast and efficient way to clear backlogs. This post will show you how to clear insurance backlogs with low code by automating workflows, reducing manual tasks and improving operational efficiency.

Processing time can be reduced by 50-90% through digitization while simultaneously improving customer service.

Key Points

Low-code platforms accelerate the insurance industry’s operational efficiency by enabling rapid application development, automating repetitive tasks and democratizing development for non-technical users.
Case studies from companies like Liberty and MSIG Insurance show the transformative impact of low-code on customer engagement, policy management and overall service delivery in the insurance space.
Insurance companies must establish strong governance frameworks and train citizen developers to get the most out of low-code and address integration, scalability and compliance challenges.

What is Insurance Backlog?

An insurance backlog refers to the accumulation of unfinished tasks or work within an insurance agency or company. This can include pending policy applications, claims processing, customer inquiries, and other administrative tasks that have not been completed in a timely manner.

Its name was taken from IT, where backlog is a set of unfinished tasks.

Backlog Challenges in Insurance Industry

Customers expect things to be handled in a timely manner – both in claims management and policy issuance.

As insurancebusinessmag.com states:

35% of policyholders point to the time it takes to receive compensation as "the worst thing" about making an insurance claim,
36% of customers find chasing payments stressful but continue to do so,
10% of customers feel so stressed about chasing payments that they give up entirely,
Customers wait an average of 10.5 weeks to get compensated following an insurance claim.

That's not all – The Financial Ombudsman Service (FOS) received nearly 190,000 insurance complaints over a five-year period.

Complaint volumes hit a 41% increase in the first quarter of 2023 compared to the same period in 2022.
In Q1 2024/25 (April to June 2024), the FOS received 74,645 new complaints, representing a 70% increase compared to the same period the previous year (43,953).
Motor insurance received the most complaints at almost 60,000 over a five-year period, accounting for nearly one-third of all complaints to the FOS since 2019.
Buildings insurance was second with almost 30,000 complaints over five years.
Travel insurance was third with 21,407 complaints and had the highest upheld rate at 39%.

As of December 2024, the backlog of VA disability claims had decreased from a decade-high of 417,855 in January 2024 to 241,601. The number of pending VA claims also saw a decline from 1,098,340 in November 2023 to 952,173.

One large European insurance company had an estimated backlog of around 100,000 claims

In Australia, the Victorian Managed Insurance Authority (VMIA) faced a backlog of over 1,300 domestic building claims as of late 2024. This was attributed to a record number of 4,849 claims received in the last year, more than double the average from previous years.

The Consequences of a Stuck Backlog in Insurance

The consequences of insurance backlogs are wide-ranging and affect customers, employees, and the overall operations of insurance companies. Below is a list of the key consequences.

Customer Dissatisfaction

Delays in processing claims or issuing policies frustrate customers, leading to dissatisfaction. This can result in negative reviews, loss of trust, and customers switching to competitors.

50% of customers say they would switch to a new brand after just one bad experience.

Financial Strain on Customers

In cases like unresolved domestic building insurance claims, customers may face financial burdens such as ongoing mortgage payments on uninhabitable properties or delayed settlements, leaving them in precarious situations5.

Operational Inefficiencies and Higher Operational Costs

Backlogs increase workloads for staff, leading to inefficiencies and longer turnaround times for claims and policy management. This can create bottlenecks across departments, further delaying processes.

One insurance company anticipated savings of around $800,000 to $1 million per year in cost reduction after implementing solutions to address non-value-added activities and redistribute workload.

Compliance Risks

Regulatory bodies often require timely processing of claims and policies. Backlogs can lead to missed deadlines, resulting in penalties, legal issues, and reputational damage.

In Poland, the Office of Competition and Consumer Protection (UOKiK) has been actively addressing payment backlogs by imposing significant fines on businesses that fail to meet reegulatory compliance regarding their monetary obligations in a timely manner. For instance, in one case, a record fine of PLN 4 million was imposed due to excessive delays in payments.

Increased Complaints

Backlogs often lead to a surge in customer complaints. For example, complaints about insurance delays rose by 50% in certain sectors over recent years due to prolonged processing times.

Employee Burnout

Staff handling backlogged tasks may experience stress and burnout due to increased workloads and pressure to meet deadlines. This can lower morale and productivity while increasing turnover rates.

In the insurance sector specifically, executives are reporting increased stress levels, with 67% feeling more stressed in 2025 compared to the previous year. The problem is particularly acute in larger insurance companies, where 82% of executives report higher stress levels, compared to 68% of leaders at smaller businesses.

Loss of Revenue

Prolonged backlogs can lead to reduced customer retention and lost business opportunities as frustrated clients take their business elsewhere.

Addressing these consequences requires insurers to streamline workflows, invest in technology, and enhance staffing strategies to mitigate the impact of backlogs on all stakeholders involved.

How Low Code Insurance Platforms Reduce Insurance Backlogs

Step 1: Accelerated Application Development

Low code platforms provide visual development environments that significantly reduce development time compared to traditional coding. Insurance companies can build applications in weeks rather than months by:

Using pre-built components and templates.
Employing drag-and-drop interfaces.
Requiring minimal hand-coding.

Low-code development is between 40% and 60% faster than traditional development according to a global survey.

Step 2: Empowering Business Users

Low code platforms enable "citizen developers" (business users with minimal technical expertise) to:

Create and modify applications without breaking business logic.
Implement business rule changes.
Design workflows without extensive IT involvement.

This distributes development capabilities across the organization, reducing dependency on IT teams and allowing them to focus on more complex tasks.

According to Gartner, low-code will account for more than 70 percent of software-development activity by 2025. This prediction is further supported by Gartner's research indicating that by 2026, at least 80% of users of low-code development tools will consist of those operating outside of formal IT departments, up from 60% in 2021.

Additionally, research indicates that nearly 80% of top-performing companies (pacesetters) in the US already utilize citizen developers.

Step 3: Automating Core Insurance Processes

Low code enables rapid automation of key insurance processes that typically consume IT resources.

Claims Processing:

Automates document management.
Provides real-time visibility into claim status.
Facilitates collaboration between stakeholders.
Reduces manual data entry and processing time.

Underwriting:

Creates custom applications to automate risk assessment.
Aggregates data from multiple sources.
Applies business rules consistently.
Reduces human error while increasing efficiency.

Policy Administration:

Simplifies policy updates and renewals.
Automates customer notifications.
Applies eligibility rules automatically.
Minimizes manual processes in routine tasks.

Step 4: Integrating with Legacy Systems

Low code platforms provide:

Pre-built connectors to existing systems.
APIs for seamless data exchange.
Integration capabilities without extensive coding.
Ability to leverage existing investments while modernizing.

Step 5: Rapid Iteration and Deployment

Low code enables:

Quick prototyping and testing.
Faster response to feedback.
Continuous improvement cycles.
Reduced time between concept and deployment.

Benefits and Revenue Impact

Immediate Benefits

Reduced Development Time: Applications built in weeks instead of months
Lower Development Costs: 24% cost savings according to TEI reports
Decreased IT Backlog: Faster resolution of pending requests.
Improved Operational Efficiency: Automation of repetitive tasks.

Long-Term Revenue Effects of low-code development platforms:

Faster Time-to-Market: New products launched more quickly (one MGA launched 25 new products in 12 months using low-code).
Improved Customer Experience: Self-service portals and faster service delivery increase satisfaction and retention3
Reduced Operational Costs: Fewer resources needed for routine tasks.
Better Compliance: Quicker adaptation to regulatory changes.
Increased Innovation: More resources available for strategic initiatives.
Market Growth: The low code technology in insurance market is expected to grow at a CAGR of 18.16% from 2024 to 2031, indicating its increasing value to the industry.

Case Studies: Insurance Digitalization Success Stories

Actual low-code implementation cases in the insurance industry offer valuable lessons on its potential to transform the industry. Insurance companies like Liberty Insurance, MSIG Insurance and Zurich Insurance have used low-code platforms to grow and strengthen their operations. These examples show how low code can speed up digital transformation and operational efficiency.

By using these low-code platforms, these insurance companies were able to refine their business processes, increase customer touchpoints and alleviate process pain points. Their results demonstrate how low-code technology can give insurers the tools to adapt to market changes, comply to regulatory requirements and stay competitive in the insurance industry.

Liberty Insurance Policy Growth

The 274% policy growth at Liberty Insurance proves the power of low-code platforms. By using a low code solution, Liberty was able to improve customer experience and streamline processes – resulting to policy growth. This allowed them to respond faster to market conditions and create bespoke insurance products that match each customer’s needs.

Liberty Insurance’s low-code deployment did more than just grow policies. It also improved customer interaction. The company’s ability to provide smooth and fast service helped them grow their customer base from 250,000 to almost four times that number.

This example shows how low-code can drive business growth while improving efficiency in the insurance industry.

MSIG Insurance’s Operational Efficiency

MSIG. Insurance has seen significant operational efficiency gains from their low-code implementation. These platforms have simplified various business processes, reduced manual errors and improved quality of service. Low-code driven digital transformation has helped them to refine their business operations and reduce costs – resulting to higher productivity.

MSIG uses low-code technology to address the issues that hinders day-to-day operations and improve customer service. This strategic move transformed manual time-consuming tasks into automated systems – allowing them to serve customers better while staying ahead of the competition in the insurance industry.

Zurich Insurance’s FaceQuote Application

The development of the FaceQuote application by Zurich Insurance is a good example of low-code adoption in the insurance industry. By simply taking a selfie through the app, users can get life insurance quotes – a quick way to engage with insurance services. This innovation was built with Mendix’s low-code platform – showing its power and potential to simplify technology.

How is Higson Helping With Insurance Backlog

Higson's business rules engine offers a powerful low-code solution for insurance companies struggling with backlogs, addressing both existing backlogs and preventing new ones from forming.

Tackling Existing Insurance Backlogs

Accelerating Development Cycles

Higson transforms what traditionally takes months into minutes by empowering business users to manage rules without IT dependency8. This directly addresses the backlog of pending changes and updates that typically accumulate in insurance operations.

Automating Core Insurance Processes

Higson streamlines key backlogged processes:

Underwriting Automation:

Connects to internal and external data sources.
Aggregates information automatically.
Applies risk rules without manual intervention.
Reduces time underwriters typically spend on non-underwriting tasks.

Claims Processing:

One insurance company using Higson's BRE achieved a 50% reduction in claims processing time and cost.
Automates documentation review and approvals.
Frees adjusters to focus on complex cases.

Modernizing Legacy Systems

Higson connects to existing sales systems and legacy infrastructure without requiring complete system overhauls. This integration capability means insurance companies can:

Update underwriting models without touching code
Make premium calculation changes without developer involvement
Implement new features without extensive IT resources

Preventing Future Backlogs

Empowering Business Users

Higson's intuitive Studio interface allows non-technical business experts to:

Create and manage complex models and algorithms independently.
Update business rules in real-time without IT involvement.
Make changes that are immediately reflected in applications.

This capability fundamentally shifts the workload away from IT departments, preventing the formation of new backlogs.

Dynamic Rule Management

Higson enables insurance companies to:

Update rules in real-time without disrupting workflows.
Adapt quickly to regulatory compliance changes, reducing compliance backlogs.
Adjust decision-making criteria as market conditions shift.

Reducing Development Costs

By separating business rules from hard code, Higson decreases development costs and time-to-market. This prevents the accumulation of change requests that typically create backlogs when:

Regulatory requirements change.
Market conditions evolve.
Customer expectations shift.

Streamlining Policy Administration

Higson transforms insurance workflows by:

Facilitating rapid policy adjustments to meet evolving regulatory demands.
Simplifying claims processing for better efficiency.
Enhancing underwriting accuracy while reducing errors.

Business Impact

The implementation of Higson as a business rules engine delivers measurable results:

50% reduction in processing time and costs for claims management.
Significant decrease in the time underwriters spend on non-core tasks.
Lower administrative costs and a more agile, customer-oriented service model.
Shorter time-to-market for new insurance products and features.

By both addressing existing backlogs and preventing new ones from forming, Higson enables insurance companies to operate more efficiently, respond more quickly to market changes, and deliver better customer experiences while reducing operational costs.

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