{"id":75989,"date":"2024-02-01T03:00:49","date_gmt":"2024-02-01T11:00:49","guid":{"rendered":"https:\/\/www.jamasoftware.com\/?p=75989"},"modified":"2024-01-31T17:13:20","modified_gmt":"2024-02-01T01:13:20","slug":"blog-bridging-the-gap-in-insurance-product-development-how-jama-connect-can-streamline-requirements-management","status":"publish","type":"post","link":"https:\/\/www.jamasoftware.com\/legacy\/blog\/bridging-the-gap-in-insurance-product-development-how-jama-connect-can-streamline-requirements-management\/","title":{"rendered":"Bridging the Gap in Insurance Product Development: How Jama Connect\u00ae Can Streamline Requirements Management"},"content":{"rendered":"
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In this blog, we recap our whitepaper, “Bridging the Gap in Insurance Product Development: How Jama Connect\u00ae Can Streamline Requirements Management” – Download the entire thing HERE<\/a><\/p><\/div>\n

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Bridging the Gap in Insurance Product Development: How Jama Connect\u00ae<\/sup> Can Streamline Requirements Management<\/h2>\n

In an industry as longstanding, complex, and regulated as insurance, it\u2019s easy for inefficiencies to creep in. Companies use the same old systems and processes that others have used for decades, and in the crunch to manage the day-to-day business, the drive to update and streamline can get lost in the shuffle.<\/p>\n

But in the modern business world, where everything moves at the speed of the Internet and consumers expect new and improved products constantly, insurance companies can\u2019t afford to fall behind on product upgrades and new product development<\/a>. Old systems and processes keep products from getting to market in a timely manner. How can insurance product developers keep up with demand while meeting business needs and regulatory requirements?<\/p>\n

The right requirements management solution can help bridge the gap between product development and the marketplace.<\/p>\n

Where The Insurance Industry Needs Requirements Management: Two Scenarios<\/h3>\n

There are two main scenarios where requirements are needed in the insurance industry. The first is in the policy administration systems that automate the day-to-day operations of an insurance company. While every insurance company is unique, most share processes for day-to-day operations and have some kind of policy administration system. It may be a unique proprietary system, designed specifically for that company, or it may be provided by an outside software vendor. This policy administration system manages the day-to-day operations of the insurance company in three areas:<\/p>\n

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  1. Policy Administration:<\/strong> To administer an insurance policy, the company must quote, bind, and issue the policy and process endorsements, cancellations, reinstatements, and renewals.<\/li>\n
  2. Billing\/Accounting Administration:<\/strong> The policy administration system must also manage the financial side of each policy. This administration involves processing initial down payments and providing payment plan options; processing cancellations or reinstatements around non-payment of premiums; processing refunds and collections; and producing an annual statement and statistical reporting.<\/li>\n
  3. Claims Administration:<\/strong> Finally, the policy administration system must process insurance claims, including first notice of loss, claims payments, and reinsurance.<\/li>\n<\/ol>\n

    Even listing the basic types of information that must be processed doesn\u2019t capture the complexity of the details that have to be managed by the policy administration system. For example, while there is one set of requirements related to insured risk and coverages, there is an entirely different set of requirements for the output to describe both static and variable data that must be printed. In addition, every policy needs to have changes at some point, which are processed as endorsements. There are different rules for different types of endorsements, which will be captured as separate requirements. At each stage and level of the policy there are different requirements that must be applied.<\/p>\n

    The list of requirements across different functions and processes in the insurance industry is almost endless; managing these requirements according to the massive number of variables across products, risks, jurisdictions, and so on can quickly become overwhelming and cumbersome. In addition, when the requirements aren\u2019t managed or applied properly, gaps and errors can easily arise, leading to administrative challenges at best, legal challenges at worst.<\/p>\n

    The second area where the insurance industry needs requirements management is in the new and enhanced insurance products and services that insurance companies want to develop and roll out to customers. Designing and introducing new products and services involves new states or geographies with different rules and regulations. Enhancing existing products can involve rate changes or additional coverages. In addition, with new or enhanced products, the policy administration system will need new or upgraded interfaces and other upgrades to the system. Introducing even one new or enhanced product can cause system-wide ripples that can impact everyone from the corporate office to the local agent.<\/p>\n

    In a world this complex, with this many details, insurance companies need a purpose-built requirements management system to allow them to effectively and efficiently respond to change.<\/p>\n

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    RELATED: <\/strong>How to Solve the Top Five Challenges for Insurance Product Development<\/a><\/span><\/span><\/h4>\n
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    Gathering, Documenting, and Reusing Requirements<\/h3>\n

    The common thread to implementing a robust and comprehensive policy administration system is understanding the requirements of the core business processes.<\/p>\n