Approaches to Product Manual Development
In iFoundry, Product manuals can be developed using one of the below-mentioned methods:
Template Approach
This approach supposes the existence of a reference manual (template manual) based on which other product manuals can be created or updated. It is most used when standard industry manuals like those provided by The Insurance Services Office (ISO) or American Association of Insurance Services (AAIS) can be leveraged to extend and construct carrier’s own product manuals. Another example would be a Carrier having multiple business divisions offering variants of the same product. For example, a Carrier may have three business divisions – E&S Casualty, National Accounts, Programs offering variants of General Liability Insurance. Carriers can create a reference manual – “GL Template Manual”, that comprises specifications common to E&S GL, National Accounts GL & Programs GL. Product Manuals for E&S GL, National Accounts GL & Programs GL based on “GL Template Manual” and exceptions or deviations specific to a business division can be captured under the specific product manual.
This approach to develop product manual has several advantages:
1. Efficiency: Reference manuals provide a jump-start for carriers looking to launch a new product. Since specifications for rates, rules and forms for key coverages are already in these reference manuals, a business division within carrier organization need to focus only on exceptions or deviations from reference manuals when launching a new product.
2. Standardization: Product manuals created in a consistent manner, based on standards, can be a valuable business asset built up over a long period of time. Frequent problems with product development can be traced to lack of consistency in defining their specifications. Standards play a key role in achieving good product quality by establishing a common understanding of how rates, rules and forms need to be defined for a line of business.
3. Analytics: Since multiple product manuals are developed based on the same reference manual, they are amenable to analysis of product offerings across carrier’s business divisions. For e.g. product manuals of one business division can be compared with those of another to understand key differences in offering. Once differences are understood, product offerings can be optimized with niche coverages, endorsements, rates to the benefit of producers and policyholders. The following are some of the inquiries that are possible through template-based approach for developing product manuals:
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What proprietary coverage forms, or endorsements are offered in E&S GL that’s not in Programs GL?
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How do rates vary between North East and South West for Commercial Property?
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How are underwriting rules different between Asia and North America for Auto?
Custom Approach
This approach provides for greater creativity in development of manuals as creators of these manuals are not bound to standards established or enforced by reference manuals. This approach is generally recommended to develop manuals for niche or non-standard insurance products for which no precedence exists in the form of a template.
Synopsis
There are options available within iFoundry to develop product manuals in a consistent form. Which option to choose depends upon the type of product – Standard or Niche and the carrier’s desire to standardize product development across business divisions.