Product Management Case Study

Product Management Case StudyWhat makes Effective Product Management Process?

Product Management Case StudyThe Product:The steps involved in developing a product to eventuallymanage

Product Management Case StudyWhat is involved in the development of aproduct?¾Identifya Niche¾Consumer Research¾Marketing Research¾Internal Buy-in¾Pricing Research¾System Development

Product Management Case StudyIdentify a Niche:¾Is there an unmet need?¾Is it insurable?

Product Management Case StudyConsumer Research:¾Who is the likely buyer of this product?¾Is there enough mass within this group?¾What type of characteristics define the product?¾Geography¾Economic¾Social

Product Management Case StudyMarketing Research:Building on the Niche Identification & Consumer Researchyou need to define¾Distribution Mechanism(s)¾Marketing Objectives¾Media Selection

Product Management Case StudyBuy-In:¾Senior Management¾All functional ¾Sales

Product Management Case StudyPricing Research:¾Product Price Frequency times Severity timesProduction Costs¾What sources are available¾GovernmentalAgencies¾Statistical Bureaus¾Associations¾Competitors

Product Management Case StudySystem Development:¾Rating & Policy Issuance¾Information for Monitoring

Product Management Case StudyPart 2

Product Management Case StudyDevelop overall strategy and performance targetsSet execution targets and manage executionAnalyze results and implement changes

Product Management Case StudyDevelop overall strategy:Learn about your market directly(e.g., visits to market, discussions with agents)¾and through research (e.g., ratefilings, PCI data, DOI reports, DMV)

Product Management Case StudyDevelop overall strategy:Near term, medium term, long term goals e.g., products to offer,target market share or position in market, target combined ratio,desired growth profile, agent distribution¾

Product Management Case StudyDevelop overall strategy:Key success factors to achieve goals e.g., in depthunderstanding of regulations, broad distribution, superiorproduct segmentation, tight underwriting¾Risk mitigation strategy e.g., CAT exposure, reinsurance.¾Special initiatives e.g., cost cutting measures¾

Product Management Case StudySet business performance targets:State/product Volume(e.g., Written Premium)and Profitability(e.g., target Combined Ratio)¾Detail the volume drivers e.g., new business counts, cancellationrates, retention rates, average premiums, counts of policies in force¾Detail the profitability drivers e.g., Loss ratio, LAE ratio, Expenseratio¾

Product Management Case StudyDevelop overall strategy and performance targetsSet execution targets and manage executionAnalyze results and implement changes

Product Management Case StudySet execution targets:Distribution performance e.g., number of agents appointed, number ofagents quoting, agent productivity, productivity of commission spend¾Marketing/sales force performance e.g., numberand type of agent visits, what promotions to run,expected volume lift per visit or per promotion¾

Product Management Case StudySet execution targets:Customer service performance e.g., callvolume per representative, average calltime, average wait time, % compliancewith procedures, impact on customerretention¾Claims performance e.g., targetcustomer response times, target days toclose PD and Collision claims¾

Product Management Case StudySet execution targets:Pricing enhancement e.g., rate updateschedule, new product introduction,anticipated rate need¾IT spend performance e.g., cost per raterevision, payback from projects¾

Product Management Case StudyManage execution:Focusing each functional area on the activities to execute¾Ensuring activities are consistent with strategy e.g., tighteningunderwriting might conflict with overall strategy to improve retention¾Ensuring activities are properly completed. Often difficult toachieve¾This is often themost challengingarea

Product Management Case StudyMonitor performance:Volume vs. plan (e.g., new business production, policy life)¾Profitability vs. target (e.g., indications, loss development, feerevenue, expenses)¾Mix of business¾Customer satisfaction vs. target¾Competitive gaps (e.g., new features, rate changes) andopportunities (e.g., underserved markets, ease of useenhancements)¾

Product Management Case StudyDevelop overall strategy and performance targetsSet execution targets and manage executionAnalyze results and implement changes

Product Management Case StudyAnalyze results:Need to have reliable datareadily available e.g., abilityto review loss ratio by businesssegments.¾Build support staff with technical skills toextract data from systems and perform analyses¾Draw on expertise across the business to improve the quality ofanalysis e.g., include finance department on review of “bad debt”¾

Product Management Case StudyUse fact based analysis to drive recommended changes:Use facts from analysis to drive decisions. Take into account“intangibles” but generally place less weight on these.¾Need to know what can be implemented. Need a goodunderstanding of regulatory constraints, market situation, ITcapabilities¾Drive the decision making process - “sell yourrecommendations to the business leaders ”¾

Product Management Case StudyImplement changes:Implement rate changes including selecting rates, obtainingregulatory approval¾Implement policy/form changes including coordinating changesacross Claims/Legal/Product/Marketing, and obtaining regulatoryapproval¾Lead or support marketing activities including promotion design,agent visit strategy¾

Product Management Case StudyPeriodic update of strategy and key tactics:¾Is the strategy working?¾Move to the next stage in the strategy?¾What’s the next big idea?Other “Maintenance” items:¾Regulatory e.g., Market Conduct Exams¾Resource management e.g., Recruiting, Training

Product Management Case Study Marketing Research: Building on the Niche Identification & Consumer Research you need to define ¾Distribution Mechanism(s) ¾Marketing Objectives ¾Media Selection. Product Management Case Study . ¾Volume vs. p