Improving Life Insurers' Speed to Market
A Celent speed to market model projects higher revenue and more profit from reduced product development time.
When senior insurance executives describe their goals and objectives, they often speak of agility, flexibility, responsiveness, and speed to market. These concepts apply to every part of the insurance value chain, but they are especially relevant to the starting point in that value chain, product development.
Celent’s two latest reports present the case for improving speed to market in the Property/Casualty market and in the Life/Health market, respectively. The reports find impressive benefits from accelerating the product development cycle and improving speed to market. The financial rewards include higher revenue and profitability. Establishing a role of market leadership is also important, especially for companies selling through independent channels. And all channels, prospects and policyholders value a relationship with a responsive, innovative insurer.
“Using a Celent model for measuring speed to market, we found a significant ROI for both Property/Casualty and Life/Health insurers,” commented Donald Light, senior analyst in Celent's insurance group and author of the report. Light continued, “We also found that bottlenecks occurred most frequently in two areas: making changes in the IT environment, and getting regulatory filings right the first time.”
The reports explain the two key metrics for measuring speed to market. The first is cycle time for getting a single new product to market. The second is product portfolio freshness, which measures the portion of total sales contributed by new or enhanced products. The reports conclude by describing several best practices, in the areas of speed, process, and organizational. The Property/Casualty report and the Life/Health report highlight the regulatory and competitive issues unique to each sector.
Both reports have 16 pages and six figures. Tables of contents are available online.
Click here for the Property/Casualty edition.