The Product Machine is the combination of technology and disciplined business process delivered as a set of software tools for product modeling, testing and execution. The Product Machine is a comprehensive solution that empowers Insurance Carriers to shorten the development time and reduce the costs of product implementation. FJA's emphasis is on operational and distribution efficiencies.
The Product Machine serves as a unifying and active platform of coverage, benefits, products, rules and calculations for all types and lines of insurance. As a centralized repository, the Product Machine contains all product components (configuration rules, calculations, accumulators, rating, definition of coverage - what can and can not be sold together). The Product Machine is the unifying platform all departments and operations (and their corresponding systems) can access and rely upon for precise and accurate product details.
The Product Machine consists of a Product Definition Environment, a Product Test Environment and Product Services.
- As a centralized repository, the Product Definition Environment contains all product components (configuration rules, calculations, coverage, benefits, rating, peril definition, etc.)
- Product Testing ensures that product updates produce reliable results and won't interfere with existing business.
- The Product Services provide the unifying platform all departments and operations access for product details. Constant product feedback allows for fine-tuning the product setup.
Key Benefits
Time-to-Market
Product changes are immediate and effective across the organization. New product introduction, implementation and distribution is streamlined. The Product Machine is the most efficient and cost effective process for managing complex insurance product information.
Consistency and Accuracy
FJA's approach results in a unifying platform, fostering an efficient and consistent use of product components, component taxonomy, and processes. Product rules have only to be implemented once - reducing the time and overhead required to synchronize multiple systems, documents and processes.
Product Tailoring
The flexible nature of the Product Machine allows for tailoring your product to satisfy the needs of your customers and distribution channels. Carriers have setup risk-optimized standard products as well specialized niche products. Commodity, off-the shelf products are supported as well as customer-specific insurance programs.
Predictive Product Implementations
A comprehensive product approach ensures that all product aspects are defined and considered ensuring that the product can be supported from sales and administration to claims and customer services, leaving no question unanswered.
Key Features
The Product Machine is an interactive set of tools and services for modeling, managing and delivering insurance products. Based on manufacturing engineering principles, it is designed to structure products into re-usable components, similar to an inventory management system. New products are often variations of existing products. FJA's approach allows for new product design and configuration to be based on existing product components and defined rules, consistent/compatible with down stream systems.
Creation and Maintenance of Product Information
- Definition of Product Options (e.g. deductibles, sum insured, attachment points, co-insurance, out-of-pocket, etc.)
- Limits, exclusions, and other contractual clauses
- Coverage and peril definition for precise claims processing
Product Configuration Rules
- Rule editor to express complex "if-then-else" expressions
- Set-up and management of configuration rules that determine which product components can - or cannot be included
- Management of field choices and ranges (e.g. permitted deductible values and sum insured based on risk profile)
Product Maintenance
- Inventory management of product components (reusable components reduce redundancies)
- Support for adding, modifying and retiring product information
- Testing and validation of changes
- In-built product governance processes and audit control
- History, version and change management
Rating and Calculation Rules
- Expression editor to define rating rules
- Different rate types may be defined (manual, experience-based, underwriter-adjusted, sold-rates, etc.)
- Flexible set-up of rate tables (may be stored internally or externally)
- Ability to solve for rates
Solution Architecture
The Product Machine is a Java-based solution that consists of a Product Definition Environment, Product Test Tool, and Product Runtime Services. Once insurance products are defined and approved, the Product Machine generates run-time Product Services, making the new product available to all applications, across all departments in the organization. The Product Machine Runtime Service exposes an open and web-service enabled interface for FJA, home-grown or third-party systems.
A Product Machine implementation is supported by FJA’s implementation methodology. FJA’s subject matter experts in product design, underwriting and actuarial ensure that product information from various sources is collected, consolidated, and cleaned to build up a robust product inventory. For each line of business reference products are available that allow for a quick product setup that can be customized through product templates and checklists.
