Insurance product launches should be seamless, predictable and repeatable.
But for insurers and MGAs, launching new digital insurance products still feels extremely precarious even in the digital era, where having modern core insurance software is now table stakes.
In my experience, this isn’t primarily because of compliance bottlenecks. It’s not even because of the complexity of insurance itself.
It’s because of misalignment.
Misalignment managed
When teams and strategy aren’t aligned - whether on objectives, ownership, or priorities - insurance product launches stall. In our industry, delays don’t just dent delivery, they compound cost, erode momentum, and chip away at stakeholder and customer trust.
The good news is that misalignment during insurance product launches can be managed and prevented.
To deliver faster and more effective insurance product launches, we first need to diagnose the 3 root causes of misalignment:
1. Fragmented teams and objectives
Without clarity on the business case, the customer value being added, and who’s accountable for decisions, delivery grinds to a halt.
For example, if the main objective of the launch is to validate a new, untested distribution channel then it makes sense to focus attention during the build on policy issuing workflows and integrations with distributors, rather than adding complexity to other parts of the product and implementation.
With clarity, teams make faster, more informed trade-offs and collaborate more effectively with each other and with partners and stakeholders.
The project lead
Successfully launching a new insurance product also needs a clear project lead who understands and can champion the “why” from start to finish.
It is the project lead’s responsibility to interpret technical discussions, ensure communications flow amongst the internal team, partners and stakeholders, and make decisions in the day-to-day of the project implementation. They help steer the team back on course when debates drift toward low-priority product details unrelated to the distribution objective. For example, business analysts are usually well-suited to this function.
The lean launch team
Secondly, a lean and focused launch team is more effective than a bloated and disparate committee.
It is far easier for a small, agile core team to stay aligned with the launch objective, as email chains and meetings will be shorter and more focused. Subject matter experts in finance, IT, compliance and operations should always be roped in as needed, but with a clear brief and full context.
The most effective launch teams I’ve worked with have at times been as small as 4 people: a project manager, a product owner, a tech lead and a UX expert.
2. Complexity creep creates barriers to launch
Insurance products are inherently nuanced, but too many projects attempt to solve for every edge case upfront. Building for every scenario, automating every process and replicating every legacy workflow is time-consuming, often unnecessary, and invariably pushes out launch dates.
The minimum valuable product
It’s a tempting and understandable pitfall, especially for technically capable teams under pressure to “get it right.”
That said, it is still possible to achieve significant speed by avoiding building full functionality for the 1st launch. We advise our clients to plan to build a product that will deliver value fast, while leaving room for iteration after launch - a minimum valuable product.
Extended waiting periods and claims workflows are a good illustration of this principle. For example, when launching a new life insurance product that has a 3 month waiting period it would not be necessary to build a full claims functionality immediately at launch. This can be built in the weeks following launch.
A good project plan
The key to preventing scope creep and over-engineering is having a robust project plan that among other things:
- defines a target (not fixed) timeline to launch
- includes clear business requirements that need to be implemented during the build
- outlines the project’s key dependencies and build assumptions and
- has a process to triage mid-project scope changes.
By aligning fully on what needs to be built for a successful insurance product launch through a thorough discovery process upfront, and documenting those requirements, the risk of misalignment is significantly reduced.
3. Slow, long feedback loops delay insurance product launches
The best data on how an insurance product is performing comes from real customers. This can only be obtained once the product is live and launched.
Even when delivery is progressing or in alpha testing, a lack of real customer feedback early on leads to flawed assumptions and rework. The longer teams wait to validate assumptions with actual users, the riskier and costlier the launch becomes.
Delay automation where possible
Resisting the temptation to automate workflows as long as possible is another smart way to de-risk launches. By avoiding investment in unvalidated workflows during the initial launch, you can go live faster, with a view to first learning what really impacts customers and operations before automating.
With more data, you will be empowered to make smarter, more informed automation investment decisions.
Testing every release during the course of the build and providing feedback early to the implementation team is a good way to flag issues before they grow roots. As the build progresses, the cost of change increases as does the risk to delivery timelines.
A successful insurance product launch starts with alignment
Strategic alignment is at the heart of every successful insurance product delivery. It begins with a clear definition of the customer pain point, the value being created, and what’s truly essential for launch.
We’ve distilled these lessons into 5 practical principles that guide our clients through faster, smarter insurance product launches - with less risk and more control.
Ready to build your next digital insurance product differently?
Download your free copy of our Product Launch Guide now.
