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Product Development 

Case Studies

RGA offers a proven record of successfully executed product launches, outstanding client service and strong value. To learn how RGA can help clients enter new markets or expand existing ones, read our case studies or contact us

The Need

A large European-based multi-national was an established general insurer in the Australian market. This client decided to pursue a strategic entrance into the life market, leveraging its strong brand and existing customer base. 

RGA offered strategic advice, product ideas, electronic underwriting and reinsurance to facilitate the client’s market entry.

RGA’s Role

RGA initially designed and facilitated a series of strategy workshops to help the client identify the best operating model and craft its market entry strategy. 

Following these workshops, RGA worked closely with the client to help execute its strategic initiatives. RGA provided:

  •  A unique product suite using preferred underwriting (the first in the market)
  • Advances in non-medical limits and face amounts
  • Electronic underwriting to enable a cost-efficient and effective operating model, including no manual underwriting in the back-office
  • Project, underwriting, business analysis and technical resources to successfully execute the project 
  • Reinsurance for the resulting product suite

Outcomes

  •  The successful launch of a direct-to-consumer product suite including life, critical illness and total and permanent disability
  • Face amounts of up to AUD$1.5 million (approximately USD$1.5 million)
  • A model that has no medical or blood requirements, and no manual underwriting 
  • A new and exciting direct-to-consumer proposition utilizing both the Internet and call center
  • A detailed electronic underwriting process with a complete rule set and flexible decisions achieving around 75% straight-through processing
  • Strong sales results exceeding the life insurance carrier’s production expectation
  • Average completion time for the online application process of approximately 12 minutes end-to-end
  • A unique policy document and wording resulting in a seven-page product disclosure statement, reduced from around 70 pages for an equivalent policy in the channel 

The Need

A life insurance carrier needed help developing a competitive high sum insured product for the Italian life insurance market. The client had an existing product targeted at the mass market; underwriting was completed with a questionnaire because the company and agents perceived underwriting and high premiums to be barriers to writing life insurance business.

This approach resulted in not properly serving the high sums insured segment.

RGA’s Role

RGA developed a high sum insured product – with underwriting rules, pricing and product design –that could be included within the company’s reinsurance agreement.  Due to the high sum insured and the use of a medical report in the underwriting process, RGA was able to propose competitive rates compared to the client's existing product.
RGA collaborated with the client to develop, analyze and prioritize ideas, define the underwriting approach and establish product design and pricing. Two years after this initial product launch, RGA also assisted the client in introducing a preferred product with additional disability and critical illness features. RGA assumed risk (along with the life insurance carrier) and trained  the client’s underwriters and sales agents.

Outcomes

  • A product for niche market where none previously existed
  • Initial sales that exceeded expectations, with application counts more than double previous counts and premium volume increasing by more than 600%
  • A demonstrated underwriting process and pricing that supports the sale of high sum insured
  • Another new preferred term product with disability and critical illness riders to replace all of their term products