In today’s insurance marketplace, coverage enhancements and creative new lines of insurance are essential to maintaining a competitive edge. When developing or updating insurance products, many carriers take action without considering important details. They do not develop their products with market evolution and regulatory hurdles specific to each state or line of insurance in mind.
Many insurance companies also try to go it alone, relying on their in-house departments to design insurance products that fit the bill. But this method is fraught with risk and can result in rejection by the State Departments of Insurance that require additional time and resources to correct.
As an insurance carrier, you understand what your clientele wants but are you prepared to design the most appropriate insurance product to achieve it? This is where insurance product design specialists come in.
Insurance product design specialists understand the nuances of specialized lines of business.
They have years of experience in unique lines such as gap products in the accident and health arena and uncommon coverages like emerging inland marine lines for technology products, insurance for pets, and animal mortality. Specialists can provide advice and guidance on any aspect required by a particular line. Most in-house teams are simply not set up to provide such extensive insight.
They bring a fresh perspective.
Insurance product consultants think outside the box and develop innovative solutions to get you from idea to an approved product that satisfies regulators in a timely period. Many product design consultants have decades of experience and can handle all aspects of your development, or fill in for a gap in your staff. You can utilize their services to whatever degree you are comfortable. They can handle your entire project or simply slot into your existing team and lend their expertise.
Product design specialists understand the market and work with you TO ensure that your product will match marketplace needs.
With today’s rapid technology advancements, what worked in the past might not be the best solution. For example, millennials are buying insurance today in a completely different way than their parents or grandparents. They want instant quotes and payment submissions with a single touch on their smartphone. A specialist can help ensure that your product–and how it is delivered–keeps pace with the times.
Insurance product design specialists understand how to approach regulators.
They understand the distinct operating nuances specific to state Departments of Insurance and the submission requirements for each department. Some have personal relationships with individuals at the departments and can obtain answers quickly. As independent contractors, insurance product specialists can also make anonymous inquiries about new products or product enhancements without spotlighting exactly who is asking. This can save a tremendous amount of time during filing, enabling you to meet all regulatory requirements ahead of time.
Some do’s and don’ts for working with an insurance product design specialist:
- Do…take advantage of their expertise. Ask pointed questions. Consultants are there to help educate you.
- Don’t…be afraid of confidentiality breaches. Non-disclosure agreements are standard and reputable product design specialists will have no problem signing.
- Do…ask about marketplace trends. Insurance product design consultants watch the entire insurance marketplace and can offer insight into shifts in the industry that can impact your business. Many advise clients on worldwide issues, including European clients who want to do business in the United States and American businesses who want to expand their coverage overseas. This insight can be invaluable to your company.
- Do…interview your prospective product design consultant thoughtfully. Time frame generalities and “Which states will be most difficult?” are softball questions. Ask specific questions about the challenges your product will face. Answering in-depth questions with detailed specifics is the sure sign of a true expert.
- Do…hire a consultant to peer review your product proposal before you file. This is an excellent way to evaluate their quality of work and can save you a tremendous amount of resources by avoiding a rejection.
- Don’t…be afraid to work with someone new. Insurance companies tend to get mired in “business as usual” thinking and can miss out on valuable opportunities in the meantime.
We always recommend that you bring your product design consultant onboard as close to your project’s inception as possible. While specialists can handle your project at any stage–before, during, or after filing–you get the true value of their expertise when you enable them to contribute to your product’s development early on.
If you would like to know more about how an insurance product design specialist can help your business, call us at (888)201-5123 Ext. 3 and we will gladly discuss your product needs.