Product Development Project Scenarios

Here’s how we can help!

Example One
Large in Scope:

ex1Parent Company (i.e. retailer, wholesaler, investment group, bank) has acquired multiple Program Administrators. Some are better equipped to achieve further organic growth than others. Everyone is focused on production and profit with little time left over for the basics of product development including market intelligence, competitor forms comparisons, industry research to determine trends to address, and innovative thinking about new coverage forms.

Vital Insurance Partners can help you by:

  • Doing the legwork necessary to determine who and where your competition is and what their product offering consists of.

  • Researching trends in the specific class/industry that need to be addressed by insurance carriers.

  • Analyzing state or regional regulatory issues – i.e. does a particular state not allow certain coverage exclusions which may impact potential claims activity.

  • Identifying options for you to grow – at a state level, at a regional level, and at an industry level.

  • Putting those options into a format you can use for decision making – coverage comparison spreadsheets, white papers on new coverages to consider, suggested underwriting and eligibility criteria. All accompanied by an Executive Summary for ease of delivery to multiple parties.

  • Taking the next steps – often the process gets bogged down around here. You know what you want. You can articulate it. But you don’t have the time or staff expertise to turn it into a reality. Vital Insurance Partners will produce Underwriting Guidelines, Coverage Forms, Supplemental Applications, Underwriter Training Material and Marketing Text which can be used in insurance carrier presentations as well as internal use.

  • Getting to market * – if you do not have the carrier contacts necessary to find the right partner for your product expansion, Vital does! We also perform program intermediary services to match your product to the most viable carriers. Ask us about those services as well!

Typical timeframe: 6-8 weeks
Cost: Can be time and expense capped at agreed upon amount, or flat dollar amount for entire project. *Program Intermediary services are separately priced.

Example Two
Medium in Scope:

Ex2Insurance carrier has a product development department which is staffed at a level that contemplates product maintenance and a percentage of time dedicated to new business development. Situation: several new program opportunities arise simultaneously which all provide for profitable premium growth but there is not sufficient staff to do all of them. Rather than turn one or more of them down….

Vital Insurance Partners can help you with any or all of the due diligence and onboarding activities:

  • Site visit to the Program Administrator to complete the due diligence process to assess the scope and needs of the program.

  • Reviewing existing underwriting guidelines and making recommendations/changes that are consistent with the carrier’s appetite.

  • Reviewing all existing coverage forms and making recommendations on changes as well as suggested new coverages for innovation in the market.

  • Creating the necessary supplemental applications for the class of business.

  • Any ongoing follow up activities after the program launches – i.e. 6 month audit to confirm adherence to agreed upon product scope and proper use of forms, rates, etc.

Typical timeframe: 4-6 weeks
Cost: Can be time and expense capped at agreed upon amount, or flat dollar amount for entire project

Example Three
Small in Scope:
(but still important!)

ex3

    Insurance Carrier – correct coverage forms are crucial!

  • Just adding a few new endorsements can make a product market competitive

  • Often lessons learned the hard way through claims need to be reacted to by modifying coverage or eligibility and underwriting thought process.

Vital Insurance Partners can create those forms, underwriting guides, or modifications to applications to flush out the hidden claims issues before they happen again.

    Program Administrator – senses a change in market direction and knows they must react.

  • Industry positions on the class are changing due to claims, legislation, or other external forces. This can be positive or negative.

  • Markets are shrinking and pulling back on coverage, or conversely, as a result of favorable case law are expanding now that boundaries are identified.

Vital Insurance Partners can help you react quickly by reworking coverage forms, underwriting guides, supplemental applications and premium/loss data compilation to illustrate where opportunity exists.

Typical timeframe: 2-4 weeks
Cost: Agreed upon flat amount