January 17, 2023

What is a product configurator in insurance?

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A digital insurance product configurator is a stand-alone software that facilitates product development processes and activities. These include product modelling, testing, and pricing. The central components of a product configurator include a workbench, a graphical user interface, and a calculation engine.  

The Purpose of a Insurance Product Configurator

So, what is the purpose of a product configurator in insurance? Many policy management solutions carry product management abilities, but product configurators are independent solutions that enable insurance providers to use them with multiple core systems.  
A digital insurance product configurator helps insurance companies differentiate their product, stay on top of market changes, and stay ahead of the curve. It enables insurance providers to launch their products quickly while keeping up with customer demands and creating distinct sales journeys with no-code abilities.  

What’s Next?  

With the advent of predictive analytics, insurance providers can evaluate pricing and risk selection and identify fraud risk. AI and LM can process massive customer data and facilitate the creation of personalised products.  
Moreover, IoT will also bolster first-hand data reception, enhancing risk assessment accuracy and accurate policy pricing. Lastly, low-code and no-code tools can help insurers increase the speed at which their products reach the market and enable convenient app development and new system creation, resulting in process optimisation throughout the industry.  
Some insurance providers have reservations about digital transformation in their field. Common reasons for this reluctance include overreliance on legacy systems and mistrust of digitalisation.  
Moreover, insurance providers believe that going digital will deplete their budgets. While advances in digitalisation will tackle the former two, the latter will only be resolved by ensuring your efforts stay within a preset digital transformation budget.

Why Keep a Budget for Your Digital Transformation Solutions or Products?

The key is to conduct thorough research and keep a sensible budget for your digital transformation products or solutions. This way, you don’t risk going overboard throughout the process. A defined digital transformation budget will enable you to operate within your means. It will encourage you to look for creative solutions to bypass any obstacles you might face along the way.  
If you keep a budget for digitalisation, you will be able to assess if you have the manpower to lead the initiative or if you will have to outsource the tasks. You should make the appropriate decision based on your finances. You will also discover other factors, such as the scope of your project and its timeline, that could affect your budget.  
Ultimately, having a defined budget will enable you to keep your eye on your objectives and keep yourself from taking on more than your resources and budget can handle.

Wesurance is an Insurtech company in the U.K. providing a platform that empowers insurance companies and brokers to easily build, develop, and grow their digital insurance branches. Through a simple-to-use and easy-to-implement solution, you can build your own digital insurance quickly and with ease. No worrying about coding to integrate the digital insurance process into your insurance business. Learn more about us at https://www.wesurance.io/.

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