Celent, a Boston-based research firm, has issued a report describing the benefits to insurers of improving their regulatory filing processes for new products.
Titled "State Filing Best Practices: Technology, Process, and Organization," it analyzes the challenges insurers face in preparing, submitting and tracking filings with departments of insurance.
"There are important business benefits for an insurer that does its state filings efficiently and correctly," said Celent. "Most of these benefits result from making the product development process faster and more effective–concepts emphasized in a product's speed to market."
"The most important benefits from an accelerated product development process are higher revenue, improved profitability and better market position," said Donald Light, senior analyst with Celent's insurance group and co-author of the report
"New products will be more attractive to producers and policyholders, generally resulting in greater sales. They may also lead to better levels of renewals and retention," added Ashley Evans, Celent analyst and co-author of the report.
According to the report, state filing (along with poor technology) is frequently a bottleneck for the entire product development process. "A faster and more accurate state filing process will result in a shorter product development cycle–concepts often captured in the phrase 'speed to market.' This, in turn, will lead to higher revenue, greater profitability and an improved market position," said Celent.
In addition, a significant number of states have broadly similar filing requirements, said Celent.
"While other states have more variation among their requirements, insurers can turn to their own staffs (if they have sufficient scale) or external services and technology to keep their knowledge of these requirements current."
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