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July 15 2013 | Karen Furtado

SMA is constantly hearing from insurance executives that improving “time to market” is a pressing priority. Because product development and configuration capabilities are so critical for competitive positioning and profitability, SMA has conducted a first-of-a-kind examination of what the actual timing is today and what insurers are doing to improve speed and address challenges and opportunities. SMA’s recently released research report entitled Product Development: Insurer Plans and Priorities, examines the full product development life cycle, explores the challenges that exist in today’s environment, and outlines the required capabilities that will address insurers’ current and future needs.

This product development research has provided major clarity in the three segments of the product development life cycle: the product creation and adaptation process, the product configuration process, and the analytic and measurement process. IT environment issues hamstring many insurers. Product innovation is sluggish because IT resources are simply not available to configure product changes and implement new products. Internally driven changes create the bulk of product modifications. Surprisingly, bureau rate filings represent less than a quarter of all product changes.

As we expected, there is no question that this is a top of mind topic in the industry. Insurers view product management capabilities as a criticallever for future growth and differentiation as well as bottom line success. Speed to market is key to competitive advantage and profitability. A remarkably high percentage of insurers will increase product development spending over the next three years.

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To learn more, please contact:
Karen Furtado
Strategy Meets Action, a ReSource Pro company