What is the primary focus during the design and development step of product creation?

During the design and development step of product creation, the primary focus is on creating coverage forms and underwriting rules. This phase is crucial as it involves defining the specifics of what the insurance product will offer, determining the types of risks covered, and establishing the guidelines for underwriting those risks.

Developing coverage forms means outlining the details of policy coverage, including what is included, what is excluded, and the conditions under which claims may be made. Underwriting rules are essential in setting the criteria for assessing risk and determining eligibility for coverage, which ultimately shapes how the product will function in the market. This step is foundational because it directly influences the product’s features and provides clarity for how it will address consumer needs.

While analyzing market share, pricing for competitiveness, and conducting market demand surveys are important aspects of the overall product development strategy, they primarily come into play before or after the design and development phase. Understanding market needs and competitive positioning can inform the design process, but the actual creation of the policy language and guidelines is a distinct focus at this stage.