Across all industries, the pace of change is speeding up, and insurers no longer have the luxury of long lead times and slow, cautious product rollouts. However, an Accenture study found that only 28 percent of respondents said they can roll out new products within 6 months, and 40 percent said it takes them a year or more. In this Insurance Chart of the Week, we’ll look at four key areas of action to help insurers develop smarter, faster products.
Improving speed to market: Four key areas of action
When it comes to improving speed to market, there are four key areas where insurers can take action:
- Technology enablers. Modern technology platforms can reduce implementation timelines, and make it easier to update products based on market and regulatory changes. Insurers should strive to be able to reuse product components, track product implementation and performance, and integrate portals between business units.
- Product architecture. Insurers that have a systematic way of organizing product information across the enterprise can reduce time to market and product development costs. This is typically structured with a base product or concept, with variations of that product layered on top to produce multiple marketable products.
- Product development process. Many insurers’ product development processes are highly manual and not reproducible; in Accenture’s experience, an effective product development process is consistent, repeatable and streamlined. It requires an end-to-end view of the process, with clearly defined activities and deliverables at each point—and each point must be influenced by customer insights and expectations.
- Operating model. A sound operating model is crucial to supporting a smart, fast, innovative product development lifecycle. This includes a clear organizational structure with defined ownership, accountability and responsibilities; active participation and collaboration between business units; and proper governance.
Further, new product profitability requires that the claims function can efficiently and effectively process the resulting claims. Claims leaders must take a seat at the product development table, where their expertise can be invaluable—especially as insurers investigate ways to grow beyond insurance to offer lifestyle or value-added products.
- Download Smarter, Faster Product Innovation: Strategic imperatives for P&C insurers (PDF).
- View the archive of Insurance Chart of the Week posts and videos.
- Email me to discuss how Accenture can help you achieve faster, smarter product development.