You work at an insurance company, in an industry where time plays a critical role in gaining a competitive edge. Your team has an idea and a vision for a new insurance product that answers real market needs. You take it to IT, and the response is: We can deliver in two to three months. Do you really have time to wait?
For decades, the process of introducing a new tariff, modifying terms and conditions, or updating underwriting rules resembled a slow, multi-stage cycle between business, IT, and legal. Every single change, even the smallest, required developers to translate business logic into code, followed by lengthy testing and deployment.
New technologies are changing this picture for good.
A configurator for change and innovation
More and more often, the industry is talking about product configurators that, powered by business rules engines (BRE), flip the traditional dynamics of product launches. Instead of waiting on IT, business teams can create and adjust product logic on their own. With intuitive, no-code or low-code graphical interfaces, users define every aspect of how a product works. They decide how pricing is calculated, which variants and options are available, who qualifies for a policy, and under what conditions. All those complex dependencies that used to be buried deep in the code are now transparent and fully configurable.
The fundamental shift is that these tools are designed with non-technical users in mind. Instead of writing complicated scripts, they define rules in decision tables, build calculation functions, or even model entire processes through visual diagrams.
What can product configurators be used for?
One of the key roles of product configurators is speeding up time-to-market for new products and modifications. Business teams can also set up pre-defined benefit packages or dynamically segment customers to offer personalized terms.
In underwriting, configurators become the central tool for defining and updating risk assessment rules. Instead of relying on static guidelines, underwriters can continuously adjust logic to support both manual and fully automated processes. The same applies to pricing – all aspects of rating logic, from simple validations and discount/markup conditions to complex premium calculation algorithms, can be managed centrally and in real time.
Configurators also bring order to managing policy terms and conditions and integrating with policy administration systems (PAS). Mapping products and their rules into the core system becomes a straightforward, configurable process, ensuring consistency throughout the policy lifecycle. In addition, these tools often serve as a central repository for reference data such as address dictionaries, transaction codes, or vehicle classifications, ensuring data consistency across the organization and boosting operational efficiency.
How can you be sure this will work?
Traditionally, the guarantee that a solution would function as expected came from IT. When business takes on the role of product creator, there's a natural fear that something might go wrong.
However, modern configurators have built-in testing mechanisms. For example, an analyst creating a discount rule doesn't need to wait for a deployment cycle to verify it. They can instantly run single test cases or entire regression test suites to see how the change affects the entire product portfolio.
Equally important are full version control and auditability. In insurance, being able to track, compare, and roll back changes when needed is essential. Configurators maintain a complete history of every modification, making it easy to manage multiple product versions - for instance, rolling out new terms on a specific date, tailoring offers to different sales channels or customer segments. Detailed audit logs ensure complete transparency and regulatory compliance.
More than just speed
Using a product configurator should be seen as an investment that quickly pays off. The first benefit you'll notice is a dramatic reduction in time-to-market - from months down to days. That allows you to respond faster to competitor moves or regulatory changes.
You'll also gain independence from IT.
When a new product idea or modification can be tested and rolled out quickly, the organization becomes more agile and responsive.
Finally, automating manual processes directly reduces operational costs and minimizes the risk of human error.
What's next?
Analysts agree that the next stage of evolution for these tools is the integration of rule-based logic with predictive models and artificial intelligence. Imagine a system where the configurator not only executes defined rules but also leverages AI recommendations to optimize pricing in real time, automate underwriting decisions based on predictive analytics, or flag potential fraud attempts.
Personally, I can't wait to see this future unfold.
