One of the most important success factors for insurance companies is how well they can manage their product design capabilities and whether they can leverage it to differentiate themselves from the competition. Market position is dependent both on the ability to combine products and services and on the real net output ratio (e.g. cooperation with other insurers or service providers). Furthermore, product portfolios, tailor-made for different distribution channels (e.g. White-Labeling), are also important factors involved in the successful marketing of products.
Flexibility and speed in product mapping are pre-requisites for success in the market. To guarantee fast time-to-market scales stringent product development processes and flexible, but stable IT environments, are required.
Product-Driven IT Landscape—What is the Advantage?
To ensure a fast product launch, it is essential, not only to implement a flexible and central product system, but the corresponding operational systems also have to be product-driven. That means that for the policy and quotation systems, the same product modules need to be used and there should be a direct relationship between the operational data structure (e.g. contract model) and the product model.
The advantages are obvious: new products are created centrally and are immediately available in the surrounding systems with minimum effort. Clearly we cannot eradicate the need to make adjustments in the operative system, but we can radically reduce the amount of adjustments to be made.
To summarize: product-driven IT-landscapes are possible. They do not completely eliminate the need for adjustments in the operational systems, but they optimize and accelerate the new product launch significantly.
Our philosophy: Modern product systems support the development or integration of operational systems!
Innovative product systems must be able to map complex products (including services) and enable applications or parts of applications to be developed in a product-driven way. They also need to be seamlessly integrated into the existing landscape.
We have been working with insurance product management products for many years. We have acquired knowledge and expertise from our many successful projects and we are familiar with insurance related product systems currently on the market. We then combined our capabilities and expertise and developed our own solution called: Faktor-IPS®, which we offer as Open Source. Faktor-IPS® is used successfully by various customers and it does not depend on what proprietary solutions and we do not char