Now that we know how market volatility and low yields are impacting insurers’ bottom lines, how can they respond? How can insurers make quick adjustments to existing products? How can they reduce testing time to introduce design flexibility? The answers sit in companies’ underlying software platforms and how those platforms measure up to meeting two important software capabilities.
Software capability #1: Building flexibility into products
A configurable life insurance software solution supports rapid product development—and rapid changes to existing products based on market events. It builds flexibility into products from the start. Pricing factors and rates can be easily adjusted. What’s more, designers are able to reconfigure the product, rather than having to rely on a developer to modify the code.
Software capability #2: Ensuring rapid and comprehensive testing
Testing can make or break not only new product development—but also the kinds of quick adjustments insurers need to cope with market challenges. Flexible testing can improve a designer’s ability to analyze, modify and confirm the behavior of new products and features. In fact, Accenture estimates that testing tools can reduce product testing efforts by up to 50 percent.
Insurers that are unable to fine-tune their product as a result of slow IT processes should consider their options. An advanced software solution can provide insurers with a competitive edge. These platforms can help build flexibility into products and support rapid testing that helps insurers modify products and features. The market isn’t standing still—neither can insurers.
Read the other post in this series:
To learn more, download Responding to the pressures of a volatile insurance marketplace: The advantage of advanced software solutions (pdf; opens in a new window).