Developing a successful insurance product is no small feat. It takes more than a great idea, it demands detailed planning, seamless collaboration across departments, and the ability to make smart decisions, often with limited data. When executed properly, a strong pre-launch strategy sets the stage not only for a smooth rollout but also for long-term sustainability in an increasingly competitive InsurTech landscape, according to Edwin Graham, Principal Actuarial Data Scientist at Akur8.
Laying the groundwork during the pre-launch phase
The journey begins in the pre-launch phase, where clarity and strategic thinking are paramount. Teams must answer several key questions before moving forward: Who exactly is the target customer?
What will make this product stand out for them? How much risk is acceptable, and where do the limits lie? Additionally, it’s crucial to establish policy terms including exclusions, deductibles and coverage limits.
These early decisions define the product’s direction and ensure alignment across underwriting, pricing, marketing and product development functions. By outlining the purpose and target market from the start, insurers can navigate the development process with greater confidence and precision.
Building a data-driven strategy without internal data
One of the toughest challenges in launching a new insurance product is the absence of historical data. New offerings typically lack claims history or internal benchmarks. However, insurers can still make informed decisions by turning to external sources.
Filed rates and competitor pricing, where available, provide insight into market standards. Aggregator platforms, such as price comparison sites, may offer access to anonymised data on recent quotes, giving visibility into market trends. Government datasets, such as crime stats or demographic information, and even non-traditional data like satellite imagery or credit reports, can further enrich a pricing strategy.
With tools such as Akur8’s DATA module, insurers can use this diverse set of inputs to lay the foundation for a robust insurance pricing strategy.
Iterative pricing: A smarter approach to actuarial modelling
Instead of aiming for perfection at the first attempt, insurers should adopt an iterative approach to pricing model development. The three pillars—segmentation, calibration and competitive analysis—need constant refinement.
Segmentation helps determine how different risk profiles affect pricing. Calibration aligns those prices with broader business goals, considering factors like expected claims, commissions and discounts. Competitive intelligence ensures that pricing remains aligned with market expectations and helps identify areas of opportunity.
Tools such as Akur8’s RISK and RATE modules support these stages, enabling forecasting, scenario testing and continuous model evolution—all vital for keeping pricing strategies agile.
Collaboration and technology: The launchpad to success
Launching an insurance product is a cross-functional endeavour that requires tight collaboration between teams.
But even the most cohesive teams need the right technology to operate at scale and with precision. Advanced actuarial platforms like Akur8 Pricing enhance efficiency and accuracy, leveraging machine learning and automation to accelerate development while maintaining control.
This fusion of people and technology not only speeds up the process but also strengthens the final product, allowing insurers to innovate while mitigating risk.
Planning for the long haul
While a solid pre-launch phase is essential, it’s only the beginning. Long-term success relies on consistent monitoring, iteration and adaptation to market shifts. Insurers that effectively blend data, pricing agility and internal collaboration are better equipped to meet customer needs and gain a competitive edge.
The journey to launch is complex and demanding—but with the right preparation and tools, insurers can ensure their new offerings thrive from day one and beyond.
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