On 15th September 2020, the High Court in London handed down its judgment in the Financial Conduct Authority’s (FCA)’s business interruption insurance test case, finding in favour of the arguments advanced for policyholders on a majority of the key issues.
The case was brought to provide clarity for thousands of policyholders making business interruption claims and their insurers following the disruption caused by Coronavirus to businesses.
The judgement is likely to go to appeal but there is now an onus on insurers to ensure they have systems in place to effectively handle claims that now have a higher probability of arising from COVID-19.
In the last two months, the team at 360Globalnet has built two no-code Business Interruption systems for global insurers seeking to reduce the operational cost and resource drain that is likely to result.
A line of business that previously generated perhaps dozens of claims per week in ‘normal’ times now threatens to unleash hundreds of thousands in a short space of time
Insurers across multiple lines of business who have worked with 360Globalnet have done so for some specific reasons. Forrester predicted that the No Code development platform market would grow to $21.2billion in 2022 from $3.8billion in 2017. Why? Because in situations where urgent needs arise very quickly, traditional ‘spec, develop, test’ IT implementations simply cannot respond fast enough.
With no-code, all the development time and cost goes into the creation of platforms where complex process workflows, automation and orchestration can be enacted in days/weeks rather than months/years. They are built from highly configurable building blocks that can link to each other and out into the world, without having to build each from scratch.
With Business Interruption, the test case has pointed the way and insurers will need to cope with whatever is finally settled upon at the likely appeal.
Two insurers worked with us to build the systems they need to ensure that both operational costs and speed of settlement are minimised. By recognising this and acting now, it is possible to extract the best outcomes from a difficult situation.
In a recent survey, insurance industry experts asked to vote on No-code platforms being a ‘Gamechanger’ or ‘Hype’ voted 81% vs 19% in favour of Gamechanger. In situations such as Business Interruption in 2020, it can be because it ensures that there is no such thing as ‘too late’. Deployments become possible in timescales that are impossible using traditional IT development.
By recognising where the delays and costs occur within the operational sharp end of insurance delivery - and then removing them - it is possible to move with speed and to the benefit of your business.
Click here to book your BI discovery session today to find out more.