This blog recaps a preview of our webinar, “Building an Efficient and Effective Product Development Process” – Click HERE to watch the entire video.

Building an Efficient and Effective Product Development Process

Managing shifting priorities, complex requirements, and compliance across teams is no easy task. But optimizing your workflows could make the difference between staying competitive and falling behind.

Join Patrick Knowles, Senior Solutions Consultant at Jama Software, for this 45 minute webinar to learn how to build more efficient and effective product development processes — and avoid the preventable setbacks caused by outdated workflows.

What you’ll gain:

• Understand how ineffective requirements processes lead to costly delays
• Discover strategies to accelerate development with structured, fine-grained data
• Improve visibility and collaboration to address risks early
• Learn how dynamic workflows replace outdated, linear processes for greater success

Whether you’re tackling recurring challenges or looking to refine your team’s processes, this session will provide practical solutions backed by industry insights and real-world success.

Patrick Knowles: Hello everyone. My name is Patrick Knowles and I come from a background of systems engineering across the aerospace and defense industry in both defense and commercial space. During my time in industry, I was a Systems Engineer, Lead Systems Engineer, and Systems Engineering Manager, where I’ve been privileged to see multiple different product development processes and life cycles.

Today I want to share my experience in industry and marry that with how Jama Connect can help each of your teams be empowered to effectively improve and develop products. During today’s webinar, I will share the key challenges of developing complex products and how Jama Connect can help alleviate these pain points. This will include how collaboration can mitigate issues, teams face, how compliance to standards and regulations can be simplified, and how to accelerate the final portion of product development, V&V.

What we’re hearing from customers is that they need to move faster, that their products are becoming more complex, and integration of the engineered products as well as within teams is becoming increasingly common. In engineering, we like to go fast. We like to run first and fail early, none of which is inherently bad. However, when teams are unprepared for the inevitable mistake or misstep, things can fall off the rails pretty quickly.

RELATED: The Strategic Transition: From Word and Excel to Modern Requirements Management

Knowles: Teams that are pushing to keep on schedule, sometimes miss standards, regulations, or even properly validating their product. Many times these things that teams lose track of, they lose track of their documentation that will be critical to the field when they go to field that product. Things get lost in emails, Slack channels, teams chats or worse, on someone’s hard drive that gets left out in the rain, of course, that would be the nightmare scenario.

Moving fast is probably the root of many of these issues, but it can be prevented by teams doing some other things that don’t inherently slow them down. As we progress throughout today’s webinar, my hope and what I’m trying to get across here is that it becomes incredibly clear that we want to enable your teams to run at full speed from the get go here at Jama. The pressure of speed is of course not the only challenge teams face though. The products that we develop nowadays are becoming more and more complex, right? If we think about just the evolution of a calculator, or a cell phone, or a computer over the last 20 years. Everything is getting smaller, tighter, better form, better fit, better function, but that also increases the complexity.

So when all the parts are moving, all the data is spread across a plethora of channels and teams are pushed to develop to the next generation of the greatest gadget. These increased complexities lead to preventable failures becoming unfortunately more routine, but we are going to discuss some of the ways to treat that as we go forward here.

Creating a thread of data that can be traced from the top to bottom is one of those ways in which Jama Connect can support a team facing these issues. In fact, starting simple in Jama Connect can help a team develop their complex products more efficiently. But as you will see later in this presentation, start simple does not mean you must maintain that simple starting point. In fact, we actually really want to talk about how you evolve and optimize as you go forward. That’s really the main theme that you’re going to see throughout this presentation.

RELATED: Why Investing in Requirements Management During an Economic Downturn Makes Good Business Sense

Knowles: Finally, integration between teams and products is becoming more and more challenging, particularly in the end stages of development. Teams are typically fantastic at creating things and talking together while they’re creating them, but when it comes to properly confirming that they created the right thing in the right way, we see a lot of unforced errors, to use a sports term, that typically is due to a lack of centralized stream of consciousness. Where all the thoughts, all the design energy goes into the same centralized location. This, of course does not to be the case, and in fact, we’ll spend a good portion of today’s session discussing collaboration and efficient centralization of information.

So how do we improve development processes, especially when we’re talking about collaboration? I want to dig into that topic here to help illuminate how to engage with some of the best practices in Jama Connect, as well as why these approaches are suggested.

One of the worst things in the digital age is trying to find something. You want to find that document, you can’t, but I actually believe that the next worst thing, or maybe even worse, is when you find the information and you simply can’t understand its intention, why it was written the way it was, and you’re trying to decipher why the decision was the way that it is, why the requirement exists or generally why something really came to be in the way that it is today. So let’s pretend you’re a bright-eyed and bushy-tailed new engineer developing something like a next-generation munition for cutting-edge, new fighter jet.

The team you are on has been tasked with taking a legacy design, 25 years of work, and revamping it for the modern age, using more sophisticated components and integrating whatever else it might be there. You show up day one of this effort and begin to realize all the legacy design was completed 25 plus years ago. There are a few Holy Grail documents that really guided the design, but much of the system was developed before teams that adopted data-centric tools like Jama Connect. So you sift through mountains of paperwork to determine why the system was designed the way it was, and that’s not inherently all that easy to do. It’s time staking, it is difficult to get the right information out.

To Watch the Entire Webinar, Visit:
Building an Efficient and Effective Product Development Process

In this blog, we’ll recap our recent webinar, “Excelling in Requirements Management for Successful Software Delivery and Implementation” – Click HERE to watch it in its entirety.

Excelling in Requirements Management for Successful Software Delivery and Implementation

Are you interested in understanding the fundamentals of effective requirements gathering and analysis for the delivery of software?

In this webinar, Steven Meadows, Principal Solutions Lead at Jama Software^®, discusses the challenges posed by traditional document-centric requirements processes to support customer-focused projects.

You’ll gain an understanding of:

• Best Practices: Transitioning to more Agile and collaborative requirements management approaches to enhance project execution.
• Case Studies: Real-world examples highlighting successful adoption of modern requirements management practices in vendor implementation projects.
• Key Metrics: Learn how a requirements management platform can help improve project metrics for customer implementations.

Below is a preview of our webinar. Click HERE to watch it in its entirety.

The following is an abbreviated transcript of our webinar.

RELATED: Buyer’s Guide: Selecting a Requirements Management and Traceability Solution for Software Development

Meadows: Effective requirements management not only accelerates project timelines but also improves stakeholder collaboration and reduces the risk of project deviations.

An integral part of today’s discussion will be a deep dive into Jama Connect, a powerful tool designed to facilitate comprehensive requirements management. We’ll explore its features and functionalities that enable teams to capture, trace, and validate requirements throughout the implementation of software.

Whether you’re new to Jama Connect or seeking to optimize your current usage, this segment will provide valuable insights into leveraging the platform effectively.

Lastly, I’ll describe a case study that illustrates a successful implementation of requirements management strategies. This real-world example will demonstrate how an organization has overcome challenges, implemented best practices, and achieved tangible benefits using advanced tools and methodologies for the implementation of solutions.

By the end of this webinar, you should gain actionable insights to enhance your approach to requirements management, ultimately driving greater efficiency and success in your software delivery projects.

Now, before we get started, I’d like to briefly introduce myself and my background. With a robust background in requirements management, I bring over 10 years of experience in implementing software solutions across a broad spectrum of industries, successfully managing complex project engagement.

Throughout my career I’ve had the privilege of working closely with incredibly innovative and life-changing organizations, helping them navigate the intricate landscape of software implementation and delivery.

From defining clear and actionable requirements to optimizing workflows and ensuring seamless collaboration across teams, I’ve witnessed firsthand the transformative impact of effective requirements management.

RELATED: Traceable Agile™ – Speed AND Quality Are Possible for Software Factories in Safety-critical Industries

Meadows: At Jama Software my focus has been on empowering teams to achieve their project goals efficiently and with precision. Whether it’s harnessing the full capabilities of Jama Connect or strategizing for complex project scenarios, my passion lies in delivering tangible results that drive innovation and enhance operational excellence.

Today I’m excited to share insights, strategies, and practical advice that can help you elevate your approach to requirements management. Together we’ll explore key principles, delve into best practices, and then cover strategies that can empower your organization to excel in software delivery and implementation.

I’d like to spend a moment quickly introducing Jama Software, the company that I represent. Jama Software provides the sweetest solutions that span the entire product and systems development lifecycle, from capturing and managing requirements traceability to enabling collaboration among diverse teams, Jama Software has engineered a platform that aligns with the evolving needs of today’s businesses.

You’ll see on this slide some of the verticals that we support, including regulated industries like medical devices and aerospace and defense, as well as pure software development and industrial manufacturing.

Some of the ways that we help our customers realize value is by reducing project cycle times, increasing process efficiency, and gaining visibility and control into implementation and development efforts.

Before we get to the main content of this webinar, I want to spend a moment just quickly defining what is meant by software implementation and delivery.
This is mainly related to the implementation of off-the-shelf software, as well as highly configurable applications. We work with a lot of vendors who implement their proprietary software for their customers, in particular, we have several customers in the benefits and HR space, healthcare, as well as other regulated industries including non-regulated industries. Although we’ll be touching on software development throughout this webinar, we’ll mainly be focusing on the implementation activities of applications, the challenges that come along with the implementation, and best practices to mitigate issues throughout the delivery of software for customers.

This has been an abbreviated transcript of our webinar.

CLICK HERE TO WATCH THIS WEBINAR IN ITS ENTIRETY:
Bridging ALM and MBSE: Strategies for Seamless Integration

Jama Software is always looking for news that will benefit and inform our industry partners. As such, we’ve curated a series of customer and industry spotlight articles that we found insightful. In this blog post, we share an article, sourced from the Innovation News Network, titled “How Manufacturing Will Reap the Rewards of Smart Factories” – originally written by Dahwood Ahmed and published on April 10, 2024.

How Manufacturing Will Reap the Rewards of Smart Factories

Dahwood Ahmed, Regional Director of UK&I at Extreme Networks, examines the concept of Industry 4.0 and how smart factories will push manufacturing into this.

Manufacturing is entering Industry 4.0, giving rise to the world’s first smart factories. A golden rush of data now pours from previously offline machinery, offering an unprecedented overview and insight into the entire manufacturing process.

And that’s just the beginning. From digital twins to biometric screening and payment, intelligent energy and climate management, smart sensors, digital signage, and 360 analytics for IT, Operations, and Marketing, the modern factory is becoming a marvelous technological beehive.

And the honey? Rich, actionable data. Digital tonnes of it.

However, all this data needs to be collected, analyzed, and used in real-time. And when there’s that much traffic, it can easily overwhelm and crash a traditional network infrastructure.

In other words, one of the biggest problems in modern manufacturing isn’t building smart factories. It’s keeping them running safely at maximum capacity—and reaping the rewards.

A smarter world

As we all know, every industry on the planet has been forced to adjust over the last five years. Manufacturing was no exception to this abrupt disruption of the status quo. It was because of war, a pandemic, and economic headwinds and because several game-changing technologies matured or were invented, introducing next-generation tools in areas such as cloud technology, IoT, robotics, blockchain, AI, and more.

All these changes and challenges created unprecedented pressure to keep the world’s production and supply chain flowing.

Luckily, manufacturing is an experienced and mature industry used to handling significant changes. Its leaders are already embracing digital transformations and innovative technologies, making impactful strides towards increased productivity, production, and capacity without sacrificing resilience and safety.

Consequently, manufacturing machines and everything else connected to smart factories are coming online, providing manufacturers with something they have never had before.

A real-time digital overview of – and insight into – the entire manufacturing process.

RELATED: Traceable Agile™ – Speed AND Quality Are Possible for Software Factories in Safety-critical Industries

Smart factory technology all comes down to data

So, by gathering and analyzing data from sensors, machines, and other IoT devices, manufacturers gain real-time insights into their operations. They can measure and monitor equipment performance, identify potential problems before they occur, and automate manual processes.

In addition to data-driven decisions, there’s predictive analytics. By extracting actionable intelligence from new and existing data sources to predict future trends and behaviors, manufacturers can further improve machine maintenance, supply chain optimization, the quality of goods produced, the customer experience, and safety procedures.

On the topic of safety, smart factory technology also provides significant benefits. Smart factory solutions can help prevent accidents and keep workers safe by monitoring the environment and equipment, identifying hazards, and alerting workers to dangers. In addition to safety, smart factory technology can help optimize energy usage, reducing costs and making it more sustainable.

Needless to say, these are massive changes that will have considerable effects on an operation’s efficiency and effectiveness. This is particularly significant for manufacturing because the industry is full of operations where even minuscule improvements can yield massive results.

Building skyscrapers on outdated foundations

However, all these new trains need tracks. Legacy network technology wasn’t built to handle the complexity or sheer amounts of data circulating in a smart factory. Nor does it have the other capabilities of modern networking, such as running digital twins.

Digital twins and simulation technologies are arguably some of the most transforming manufacturing tools to emerge from Industry 4.0. They revolutionize how manufacturers design, test, and optimize their operations by letting them create virtual models of their networks and processes. Using these models, they can simulate and test different scenarios without impacting production.

Yet this also requires a modern network infrastructure because of the incredible amounts of data passing between physical manufacturing processes and digital twin simulations. And the more processes come online, the more important it becomes to stay online.

Production line downtime, regardless of its cause, whether system overload, equipment malfunction, or connectivity loss, is costly. Between 2019-2020 and 2021-2022, the annual cost of downtime for Fortune 500 companies worldwide soared by 65% to more than £102 million.

And that’s per facility.

RELATED: Jama Connect® Software Collaboration Datasheet

Staying secure

It’s not just network failure or equipment malfunctions, either. One of the few downsides of coming online is the exposure to bad actors, who are a relatively new threat to manufacturers. However, cybercrime is a threat that needs to be taken seriously.

From network disruption to halted production, lost data, compromised security, and reputational damage, cybercriminals seek to hold manufacturing operations hostage in any way they can, fully aware that a million-pound payout could be cheaper than an idle operation.

Network hardening strengthens the defenses of smart factories and can mitigate both passive (data is left intact) and active (data is corrupted or destroyed) forms of cybercrime. It provides industrial security and mitigates risk by providing a robust, secure network for a high density of connected devices, which brings us back to the heart of the matter.

The need for new infrastructure

Industry 4.0 is undoubtedly the next step in the evolution of manufacturing. Just like our brains process millions of nerve signals daily to transform our bodies into cohesive entities, smart factories can use technologies and the data they produce to create interconnected manufacturing marvels.

But the information must flow fast. If manufacturers want to reach their goals, if they want to build and run their smart new factories to the absolute pinnacle of their potential, they need to start at the beginning—with the foundation.

In other words, the network infrastructure.

Secure by Design: A Crucial Imperative for Medical Device Teams

In today’s healthcare landscape, technology plays a crucial role in patient care. Medical devices have become essential for monitoring vital signs and administering treatments. However, as these devices become more connected and complex, ensuring their security is now more important than ever. This is where the concept of “Secure by Design” comes in, serving as a fundamental principle for medical device teams to navigate the intricate world of healthcare technology. Which begs the question, with the rise in security concerns, do regulations now need to consider whether each device is safe, effective, and secure?

Understanding the Landscape

Medical devices have advanced beyond being simple, independent systems. With the rise of the Internet of Things (IoT), devices are now interconnected, allowing for the exchange of data. While this connectivity has many advantages, it also opens vulnerabilities that could be exploited by malicious entities.

Cybersecurity threats not only put patient data at risk, but also the health of those who rely on these devices. It’s also a costly and time-consuming process for medical device companies to manage, and resolve. According to IBM Security analysis of research data compiled by Ponemon Institute, 83% of organizations have had more than one security breach, and the average cost of each breach averaged $4.3 million globally. That number more than doubles for the average cost of a security breach in the United States – $9.44 million – the highest in the world.

RELATED: Traceable Agile™ – Speed AND Quality Are Possible for Software Factories in Safety-critical Industries

The Essence of Secure by Design

Secure by Design is a proactive approach that prioritizes security in the development process. Rather than treating security as an afterthought, it is integrated into the design and development phases. For medical device teams, this means implementing security measures from the start of a project, considering potential threats and vulnerabilities, and implementing safeguards to reduce risks.

Key Principles of Secure by Design:

• Risk Assessment: Before beginning development, medical device teams must conduct a thorough risk assessment. This involves identifying potential threats, understanding vulnerabilities, and evaluating the potential impact of security breaches on patients and healthcare providers.
• Data Encryption: Due to the sensitive nature of healthcare data, encryption is a crucial aspect of secure design. Implementing strong encryption protocols ensures that patient information remains confidential and secure during transmission and storage.
• Access Control: Limiting access to medical devices is crucial. Secure by Design stresses the importance of implementing strict access controls, ensuring that only authorized personnel can interact with the device. This prevents unauthorized users from tampering with critical settings or accessing sensitive patient data.
• Regular Software Updates: Vulnerabilities in software can leave devices vulnerable to cyber threats. It is essential for medical device teams to prioritize regular software updates and patches to address potential security risks. This ensures that devices can withstand evolving cyber threats.
• User Education: Even the most secure devices can be compromised if users are not vigilant. Secure by Design also includes educating end-users on cybersecurity best practices. This ensures that individuals using medical devices are aware of potential risks and take necessary precautions.

Regulatory Landscape and Compliance

The healthcare industry must comply with strict regulations to protect the well-being of patients. Regulatory agencies, such as the Food and Drug Administration (FDA), acknowledge the significance of cybersecurity in medical devices. Following regulatory guidelines is not only a legal obligation, but also a dedication to ensuring the utmost safety and security for patients.

Challenges and Solutions

Implementing Secure by Design in the development of medical devices can be challenging. Balancing the need for innovation with strict security measures is complex. Additionally, the ever-changing landscape of cybersecurity threats requires constant attention.

Solutions:

• Collaboration and Training: It is crucial to foster collaboration between cybersecurity experts and medical device developers. Ongoing training for the development team ensures they are informed about the latest security threats and mitigation strategies.
• Third-Party Security Assessment: Engaging third-party security experts to regularly assess medical devices can provide an unbiased perspective on their security. This external validation can uncover blind spots that internal teams may miss.
• Incident Response Planning: Despite preventative measures, security incidents can still occur. A robust incident response plan allows medical device teams to promptly and effectively address breaches, minimizing their impact on patients and healthcare providers.

RELATED: The Complete Guide to ISO 13485 for Medical Devices

The Future of Medical Device Security

As technology continues to advance, the healthcare industry is constantly evolving. Medical device teams must be proactive in anticipating and addressing potential security challenges to stay ahead of the curve. Secure by Design is not a one-time effort, but an ongoing commitment to the safety and well-being of patients.

It is not just best practice, but a moral imperative for medical device teams to integrate security into the DNA of their development process. By doing so, they contribute to a safer and more resilient healthcare ecosystem. The future of healthcare relies on innovation, connectivity, and security, and it is the responsibility of medical device teams to ensure that these pillars remain strong.

Jama Connect^® for Medical Device Development

Jama Connect for Medical Device Development helps medical device teams reduce the effort required to achieve regulatory compliance throughout the development process. With this solution, medical device teams can manage design controls for device requirements and related risks, simplifying regulatory submissions and audit preparations while accelerating time to market. Learn more: Solution Overview: Jama Connect Solution for Medical Device Development

Note: This article was drafted with the aid of AI. Additional content, edits for accuracy, and industry expertise by [Vincent Balgos, McKenzie Jonsson, and Decoteau Wilkerson].

In this blog, we recap our whitepaper, “Bridging the Gap in Insurance Product Development: How Jama Connect® Can Streamline Requirements Management” – Download the entire thing HERE

Bridging the Gap in Insurance Product Development: How Jama Connect^® Can Streamline Requirements Management

In an industry as longstanding, complex, and regulated as insurance, it’s easy for inefficiencies to creep in. Companies use the same old systems and processes that others have used for decades, and in the crunch to manage the day-to-day business, the drive to update and streamline can get lost in the shuffle.

But in the modern business world, where everything moves at the speed of the Internet and consumers expect new and improved products constantly, insurance companies can’t afford to fall behind on product upgrades and new product development. Old systems and processes keep products from getting to market in a timely manner. How can insurance product developers keep up with demand while meeting business needs and regulatory requirements?

The right requirements management solution can help bridge the gap between product development and the marketplace.

Where The Insurance Industry Needs Requirements Management: Two Scenarios

There are two main scenarios where requirements are needed in the insurance industry. The first is in the policy administration systems that automate the day-to-day operations of an insurance company. While every insurance company is unique, most share processes for day-to-day operations and have some kind of policy administration system. It may be a unique proprietary system, designed specifically for that company, or it may be provided by an outside software vendor. This policy administration system manages the day-to-day operations of the insurance company in three areas:

1. Policy Administration: To administer an insurance policy, the company must quote, bind, and issue the policy and process endorsements, cancellations, reinstatements, and renewals.
2. Billing/Accounting Administration: The policy administration system must also manage the financial side of each policy. This administration involves processing initial down payments and providing payment plan options; processing cancellations or reinstatements around non-payment of premiums; processing refunds and collections; and producing an annual statement and statistical reporting.
3. Claims Administration: Finally, the policy administration system must process insurance claims, including first notice of loss, claims payments, and reinsurance.

Even listing the basic types of information that must be processed doesn’t capture the complexity of the details that have to be managed by the policy administration system. For example, while there is one set of requirements related to insured risk and coverages, there is an entirely different set of requirements for the output to describe both static and variable data that must be printed. In addition, every policy needs to have changes at some point, which are processed as endorsements. There are different rules for different types of endorsements, which will be captured as separate requirements. At each stage and level of the policy there are different requirements that must be applied.

The list of requirements across different functions and processes in the insurance industry is almost endless; managing these requirements according to the massive number of variables across products, risks, jurisdictions, and so on can quickly become overwhelming and cumbersome. In addition, when the requirements aren’t managed or applied properly, gaps and errors can easily arise, leading to administrative challenges at best, legal challenges at worst.

The second area where the insurance industry needs requirements management is in the new and enhanced insurance products and services that insurance companies want to develop and roll out to customers. Designing and introducing new products and services involves new states or geographies with different rules and regulations. Enhancing existing products can involve rate changes or additional coverages. In addition, with new or enhanced products, the policy administration system will need new or upgraded interfaces and other upgrades to the system. Introducing even one new or enhanced product can cause system-wide ripples that can impact everyone from the corporate office to the local agent.

In a world this complex, with this many details, insurance companies need a purpose-built requirements management system to allow them to effectively and efficiently respond to change.

RELATED: How to Solve the Top Five Challenges for Insurance Product Development

Gathering, Documenting, and Reusing Requirements

The common thread to implementing a robust and comprehensive policy administration system is understanding the requirements of the core business processes.

• Business requirements are the needs of the company, regardless of whether there’s a system to process the work.
• Stakeholder requirements are the requirements needed for a specific user to be able to process that information in a specific type of system, but they do not need to be specific to the system. These requirements are the ones that a user (such as an agent or claims adjustor) would need to accomplish the business requirements.
• Solution requirements (functional and non-functional) are the technical requirements that each software solution must have to accomplish stakeholder requirements.

The big key to gathering requirements in all three areas is that the requirements must be reusable. While each software company may have a preference on the format used for the implementation, the business and stakeholder requirements should be reusable within any system so that software requirements can be tailored to the specific implementation strategy.

The Four Main Challenges for Insurance Requirements Management

There are currently four main challenges facing the insurance industry when it comes to requirements management.

1. Introduction of Agile Methodology

The move to agile methodology created a mindset in the insurance industry that requirements weren’t necessary for software development and upgrades. Shortly after the agile revolution began, the IIBA, International Institute of Business Analysis, which is the governing body for business analysts, suggested that business analysts had to adjust to this methodology by evolving to support these new ways of working—not just in software development, but in any area of business analysis where changes happen rapidly. Since then, business analysts often say, “requirements are in the code,” suggesting that requirements are just an extra step that takes too much time.

The reality is that not everyone is a developer who can read and interpret code. Business analysts know the requirements of the business and stakeholders, but they don’t necessarily know how to gauge whether the software meets those requirements. Likewise, software developers may not know the needs of the insurance business without someone who can communicate requirements.

Requirements and requirements management are essential for project success, in part because they reduce the risk of project failure or cost overrun. The solution is not to eliminate requirements to work faster; rather, it’s to manage requirements more efficiently to meet the demands of the market.

2. Unwillingness to Change Outdated Requirements Processes

Change is difficult for a lot of reasons, and it’s not uncommon to hear “we’ve always done it this way” or “if it’s not broken, we don’t need to fix it.”

However, outdated methods of requirements management cannot keep pace with modern needs, and relying on old processes inhibits new product development and innovation. Business analysts should be catalysts for change and demonstrate the efficiencies of new processes throughout the organization.

Another obstacle to change is summed up by the statement, “we’ve managed without requirements management all this time—why is it so important that we do this now?” This attitude represents a misunderstanding about requirements in general. They have always been necessary, and they’ve always been around, whether documented in a specific way or simply discussed in general terms.

Unfortunately, adding new processes to consistently use and reuse requirements can sometimes mean extra work that nobody has time for. Again, this is where business analysts can step
into the fray and be catalysts for change.

3. Reliance on Document-Based Requirements Management Tools

Too many insurance companies rely on document-based tools such as Microsoft Excel spreadsheets and Word documents to manage requirements. These tools are just too time-consuming to manage and can become quickly obsolete if they’re not consistently and constantly updated. It’s also very cumbersome to provide appropriate traceability for testing and test planning using these types of tools. Imagine trying to sit down with four or five different Excel documents and trace the requirements all the way through!

4. Complex Collaboration Across Teams, Departments, and Stakeholders

There is often a great deal of difficulty collaborating within teams, departments, and various stakeholders involved on a project. When it comes to developing and launching new insurance products, collaboration is vital to success, but coordinating schedules and sharing documents can often result in confusion. Fragmented collaboration also introduces the risk of siloed activities and tools; when teams and tools exist independently of one another in different formats and processes, coordination and collaboration become cumbersome at best, impossible at worst. Old tools and processes introduce risk, whereas modern requirements management systems allow people to collaborate at their own pace and provide documentation necessary to clarify and approve requirements.

To solve these challenges, any requirements management system adopted by insurance companies should address four main issues:

• Maintenance and Traceability: The system must allow requirements to be easily maintained and traced across all teams, stakeholders, and functions throughout the development process. Having the ability to quickly identify requirements and their related functionality is essential for making informed decisions quickly. Lack of maintenance and traceability can lead to major product delays and make it difficult to shift resources from core business tasks to breakthrough innovation initiatives.
• Easily Adapt for Future Innovation: A requirements management solution for insurance should allow current state requirements to always be ready for future state innovations, drastically reducing the time to market for new and improved products. Having the ability to integrate existing requirements with new functionality is essential to quickly move breakthrough innovative initiatives from development to market.

The traceability functionality really drew Farm Bureau Insurance to Jama Connect because it is easy to identify within the workflow.

“Traceability in Jama Connect^® makes it easier to assess the impact of a proposed change,” says Blundy. “It helps identify all areas we have to modify and then gives us the ability to route the change for review and approval with ease. A single source of truth also improves consistency, for example, having templates built into Jama Connect — with all templates located in a single spot — means we’re all using the same template. And we’re following the same processes when writing, sending, and closing requirements.” – HEIDI BLUNDY, BUSINESS AND TECHNICAL ANALYST AT FARM BUREAU INSURANCE

Read the complete story here »

• Standardization of Reusable Requirements: Having a standard way to reuse existing requirements reduces the risk of project failure, achieves cost savings, and ultimately increases customer satisfaction and return on investment. With standardized requirements, team members who need to review and respond to the requirements can perform their roles more effectively and efficiently.
• Centralization of Requirements: Effective collaboration in the development of insurance products is vital to successful product development, and having your requirements in a central place to quickly find and use is key to effective collaboration.

DOWNLOAD THIS ENTIRE WHITEPAPER HERE:
Bridging the Gap in Insurance Product Development: How Jama Connect^® Can Streamline Requirements Management

What is a Software Factory?

A software factory is not a physical factory; instead, it’s a metaphorical one, signifying a structured, systematic approach to software development. It’s based on the principles of manufacturing, where standardization, automation, efficiency, and quality control are paramount. In a software factory, software is produced in a manner akin to an assembly line, where each stage of development follows a well-defined process, ensuring consistency and scalability.

RELATED: Loram Rides the Fast Track to Software Safety with Jama Connect^®

Key Components of a Software Factory

• Standardization: Standardized procedures and equipment are the foundation of a software factory. Because of this standardization, the development process is more predictable and controllable since every piece of software is produced using the same set of procedures.
• Automation: The software factory model’s foundation is automation. Automation tools are used to speed up development, minimize errors, and reduce manual labor from code generation to testing and deployment.
• Modular Architecture: Software factories employ modular architecture in a similar way to physical factories that use interchangeable parts. Reusable components are made possible by this method, which speeds up and simplifies the development of new features or apps.
• Quality Control: A software factory must employ continuous integration and deployment (CI/CD) techniques. By using these procedures, code modifications are automatically tested and released, upholding strict dependability and quality criteria.
• Collaboration and Communication: Coordinating the efforts of the various teams participating in the development process requires the use of effective collaboration tools and processes. By doing this, it is made sure that everyone is in agreement and that the result meets the intended goals.

Benefits of a Software Factory

• Increased Efficiency: By automating repetitive tasks and standardizing processes, a software factory significantly increases the efficiency of software development.
• Consistency and Quality: Standardized processes and automated testing lead to more consistent and higher-quality software products.
• Scalability: The modular approach and automation make it easier to scale the development process, accommodating more features or higher volumes of software production without a proportional increase in resources or time.
• Faster Time-to-Market: With streamlined processes and automation, software factories can significantly reduce the time it takes to bring a software product from concept to market.
• Cost-Effectiveness: Although set up requires an initial investment, the long-term benefits of increased efficiency and reduced manual effort result in significant cost savings.

RELATED: Traceable Agile – Speed AND Quality Are Possible for Software Factories in Safety-critical Industries

How Can Jama Connect^® Help?

Jama Connect^® aids leaders by providing robust requirements and test management, ensuring clarity and alignment throughout the project. With Jama Connect’s Live Traceability™, teams can manage requirements and tests through the systems development process for proven reduction in cycle time and improved product quality.

With the advent of the software factory, software development has undergone a paradigm change from an artisanal, handcrafted approach to one that is more methodical, efficient, and scalable. Organizations can create software more effectively, more cheaply, and with higher quality by adopting the concepts of standardization, automation, modular architecture, quality control, and effective teamwork.

Note: This article was drafted with the aid of AI. Additional content, edits for accuracy, and industry expertise by Steven Meadows, McKenzie Jonsson, and Decoteau Wilkerson.

In part 3 of this three-part blog series, we will overview our whitepaper, “Software Defined Vehicles: Revolutionizing the Future of Transportation” Download the entire thing HERE and click here for part 1 and here for part 2.

Software Defined Vehicles Part 3: Revolutionizing the Future of Transportation

Future Trends and Considerations in Software Defined Vehicles

Evolution of Software Defined Vehicles

Software Defined Vehicles (SDVs) are continually evolving, driven by advancements in technology and changing consumer expectations. Several future trends and considerations will shape the future of SDVs:

• Increased Autonomy: SDVs will continue to progress towards higher levels of autonomy, with advancements in sensor technology, artificial intelligence, and machine learning. Fully autonomous vehicles that can operate without human intervention in specific environments and conditions will become more prevalent.

Image courtesy of SAE International, SAE J3016™ Update

• Connectivity and V2X Integration: SDVs will further integrate with Vehicle-to-Everything (V2X) communication, allowing vehicles to interact with other vehicles, infrastructure, and pedestrians. This connectivity will enable cooperative driving, efficient traffic management, and improved overall safety and efficiency on the roads.
• Edge Computing and Cloud Integration: The integration of edge computing capabilities in SDVs will enhance real-time data processing and decision-making at the vehicle level. Additionally, cloud integration will enable seamless access to services, personalized settings, and advanced analytics for vehicle performance monitoring and predictive maintenance.
• Advanced User Interfaces and Experiences: SDVs will feature enhanced user interfaces, including augmented reality displays, natural language processing, and gesture recognition. These interfaces will provide more intuitive and immersive user experiences, allowing drivers and passengers to interact seamlessly with the vehicle’s software features and services.

Regulatory and Legal Considerations

The development and deployment of SDVs bring forth a range of regulatory and legal considerations that need to be addressed:

• Safety Regulations: Governments and regulatory bodies are actively developing safety regulations specific to autonomous vehicles and SDVs. These regulations aim to ensure the safety of occupants, pedestrians, and other road users, covering aspects such as system performance, emergency response protocols, and liability frameworks.
• Data Privacy and Security: As SDVs generate and process vast amounts of data, protecting user privacy and ensuring data security become paramount. Legislation regarding data collection, usage, and storage will need to be in place to safeguard user information and prevent unauthorized access.
• Liability and Insurance: The shift towards autonomous driving and SDVs raises questions about liability in the event of accidents or system failures. Clear guidelines and legal frameworks must be established to determine liability and insurance coverage in autonomous driving scenarios.
• International Standards and Harmonization: Harmonization of standards across different regions and countries is crucial for the widespread adoption and interoperability of SDVs. Collaborative efforts among governments, industry stakeholders, and standardization bodies are necessary to establish common standards and facilitate global deployment.

Ethical Considerations

The development and deployment of SDVs also raise several ethical considerations that require careful consideration and discussion:

• Decision-Making in Critical Situations: SDVs may encounter critical situations where split-second decisions need to be made, potentially involving the safety of occupants, pedestrians, or other vehicles. Determining ethical guidelines and frameworks for decision-making in such situations is essential to ensure responsible and ethical behavior.
• Job Displacement and Economic Impact: The advent of autonomous driving technology may impact various industries, including transportation, logistics, and ride sharing. It is important to address the potential job displacement and economic impact of SDVs and explore strategies to mitigate any negative consequences.
• Social Equity and Accessibility: SDVs should be designed and deployed in a manner that ensures accessibility and social equity. Considerations should be given to individuals with disabilities, elderly populations, and those who cannot afford traditional modes of transportation, ensuring that SDVs contribute to inclusivity and equitable access to mobility.

RELATED: The Software Factory: A Modern Approach to Software Development

Decision-Making in Critical Situations: SDVs may encounter critical situations where split second decisions need to be made, potentially involving the safety of occupants, pedestrians, or other vehicles. Determining ethical guidelines and frameworks for decision-making in such situations is essential to ensure responsible and ethical behavior.

The Road Ahead for Software Defined Vehicles

The future of software defined vehicles holds immense potential for completely transforming the way we commute and interact with transportation systems. Several key areas will shape the trajectory of SDVs in the coming years:

• Shared Mobility: SDVs will more than likely play a significant role in shared mobility services such as ride sharing and carpooling. Autonomous SDVs will enable more efficient utilization of vehicles, reduce traffic congestion, and provide cost-effective transportation options for individuals and communities.
• Smart Cities Integration: SDVs will be integral to the development of smart cities. Through V2X communication, SDVs will interact with smart infrastructure, traffic management systems, and other vehicles, optimizing traffic flow, reducing emissions, and enhancing overall transportation efficiency.
• Electric and Sustainable Mobility: The integration of SDVs with electric and hybrid powertrains will push the adoption of sustainable mobility solutions. Electric SDVs will contribute to reducing greenhouse gas emissions and dependence on fossil fuels, fostering a cleaner and more environmentally friendly transportation ecosystem and mindset.
• Mobility as a Service (MaaS): SDVs will be a cornerstone of the Mobility as a Service concept, where transportation is viewed as a service rather than individual vehicle ownership. SDVs will be seamlessly integrated into multi-modal transportation networks, providing on-demand mobility options and personalized travel experiences.

Innovation and Collaboration

The realization of the full potential of SDVs requires innovation and collaboration among various stakeholders:

• Industry Collaboration: Collaboration among automotive manufacturers, technology companies, and other industry players is essential for advancing SDV technologies. Partnerships can facilitate the sharing of expertise, resources, and best practices, accelerating the development and deployment of SDVs.
• Research and Development: Continued investment in research and development (R&D) is crucial to drive innovation in SDV technologies. R&D efforts should focus on areas such as sensor technology, artificial intelligence, cybersecurity, and human-machine interfaces to further enhance the capabilities and safety of SDVs.
• Regulatory Frameworks: Governments and regulatory bodies play a pivotal role in fostering the growth and safe deployment of SDVs. Regulatory frameworks need to strike a balance between safety requirements, innovation encouragement, and flexibility to accommodate evolving technologies and business models.
• User Acceptance and Education: User acceptance and education are vital for the successful adoption of SDVs. Public awareness campaigns, educational programs, and interactive demonstrations can help familiarize people with SDV technologies, address concerns, and build trust in autonomous and software-driven systems.

Challenges and Considerations in Implementing Software Defined Vehicles

The implementation of Software Defined Vehicles comes with a set of challenges and considerations that need to be addressed for successful integration and deployment into the world. This chapter explores key challenges and provides insights into addressing them effectively.

Safety and Security

• Safety Assurance: Comprehensive testing, validation, and verification processes should be in place to assess the functionality, reliability, and performance of SDV software and hardware components. Rigorous safety standards and protocols must be followed throughout the development lifecycle.
• Cybersecurity: SDVs are susceptible to cybersecurity threats, including hacking, malicious attacks, and unauthorized access. Robust security measures, such as encryption, intrusion detection systems, and secure communication protocols, should be implemented to protect SDVs from potential vulnerabilities.
• System Failures and Redundancy: SDVs should incorporate redundancy mechanisms and fail-safe systems to handle unexpected software or hardware failures. Redundant sensors, backup power sources, and fail-over mechanisms can enhance the robustness and reliability of SDVs.

Data Management and Privacy

• Data Collection and Usage: SDVs generate vast amounts of data that need to be collected, processed, and analyzed. Clear guidelines and policies should be established regarding data collection, usage, and retention, ensuring compliance with privacy regulations and protecting user data.
• Data Sharing and Interoperability: SDVs should have the ability to securely share relevant data with other vehicles, infrastructure systems, and service providers to enable efficient traffic management, cooperative driving, and enhanced situational awareness. Common data formats and interoperability standards should be developed to facilitate seamless data exchange.

Infrastructure and Connectivity

• Communication Infrastructure: Robust communication infrastructure is crucial for the successful operation of SDVs. Reliable and high-bandwidth connectivity, including 5G networks and dedicated V2X communication channels, should be available to support real-time data exchange and enable effective communication between vehicles and infrastructure systems.
• Infrastructure Readiness: The deployment of SDVs requires appropriate infrastructure readiness, including road markings, signage, and intelligent transportation systems. Governments and city planners need to invest in infrastructure upgrades and adaptations to support SDVs and ensure a smooth transition to an autonomous and connected transportation ecosystem.

RELATED: Traceable Agile – Speed AND Quality Are Possible for Software Factories in Safety-critical Industries

Conclusion

It’s clear that the emergence of Software Defined Vehicles represents a transformative shift in the automotive industry and the way we perceive transportation and possibilities. SDVs have the potential to improve safety, enhance mobility, reduce congestion, and contribute to a more sustainable and connected future.

However, the successful integration of SDVs into our society requires concerted efforts from various stakeholders. Addressing technical challenges, developing robust regulatory frameworks, investing in infrastructure, and building public trust are crucial for realizing the full potential of SDVs.

As we navigate the complexities and opportunities presented by SDVs, it is essential to prioritize safety, inclusivity, ethical considerations, and public engagement. By fostering collaboration and embracing innovation, we can shape a new future.

This has been part 3 of a three-part blog series overviewing our whitepaper, “Software Defined Vehicles: Revolutionizing the Future of Transportation”
Download the entire thing HERE and click here for part 1 and here for part 2.

In part 1 of this three-part blog series, we will overview our whitepaper, “Software Defined Vehicles: Revolutionizing the Future of Transportation” Download the entire thing HERE and visit part 2 HERE and part 3 HERE.

Software Defined Vehicles Part 1: Revolutionizing the Future of Transportation

Introduction

Software Defined Vehicles (SDVs) are a revolutionary approach to transportation that leverages software integration and virtualization technologies to enhance vehicle functionality, connectivity, and autonomy. SDVs are designed to adapt and evolve through the use of software updates, enabling new features, capabilities, and improvements without requiring extensive hardware modifications.

The concept of SDVs emerged from the increasing complexity and reliance on software in modern vehicles. Traditionally, vehicles relied on dedicated, hardware-based components for specific functions such as engine control, braking systems, and infotainment. However, with the rapid advancements in computing power and connectivity, the integration of software has become pivotal in transforming vehicles into intelligent, connected machines.

Advantages and Benefits

The adoption of SDVs brings forth a wide range of advantages and benefits for both manufacturers and consumers.

1. Flexibility and Adaptability: SDVs allow manufacturers to introduce new features and functionalities through software updates, eliminating the need for extensive hardware modifications. This flexibility enables vehicles to keep up with emerging trends and technological advancements.

2. Enhanced Connectivity: SDVs facilitate seamless connectivity with other vehicles, infrastructure, and external systems, enabling Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), and Vehicle-to-Everything (V2X) communication. This connectivity opens up opportunities for improved safety, traffic management, and optimized driving experiences.

3. Autonomous Driving Capabilities: SDVs play a crucial role in the development of autonomous vehicles. By integrating Advanced Driver Assistance Systems (ADAS), machine learning algorithms, and sensor data, SDVs can achieve various levels of autonomy, ranging from partial to fully autonomous.

4. Improved User Experience: SDVs provide enhanced user experiences through interactive cockpits, personalized infotainment systems, and seamless integration with mobile devices. Users can access a wide range of services, entertainment options, and customized settings to make their driving experience more enjoyable and convenient.

RELATED: Collaborative Planning, Validation, and Alignment for Cybersecurity with Jama Connect^® for Automotive

Historical Background and Evolution

Early in the 21st century, when the automotive industry first began adding software for numerous vehicle operations, SDVs began to take shape. Electronic Control Units (ECUs) were invented, opening the door for the use of software in crucial systems including brakes, transmission control, and engine management.

The industry observed a shift towards centralized software architectures as computing power increased and networks advanced. This change made it possible to combine several ECUs into a single central processing unit, which decreased complexity and enhanced communication between various systems.

The development of SDVs was also expedited by improvements in virtualization technology and software-defined networking (SDN). By allowing many functions to execute on shared hardware resources, virtualization made it possible to create virtual instances inside of cars, improving efficiency, and ultimately cutting costs.

The day of completely autonomous vehicles is approaching as software, connectivity, and artificial intelligence come together. SDVs will continue to be essential in determining how transportation develops in the future, ushering in a new era of mobility and connection.

The Role of Software in Modern Vehicles

Traditional Vehicle Architecture

As mentioned above, traditional vehicle architecture relied heavily on dedicated, hardware-based components for various functions. Each function, such as engine control, braking systems, and infotainment, had its own dedicated hardware module or Electronic Control Unit (ECU). These ECUs operated independently, with limited communication between them.

While this architecture served its purpose, it posed challenges in terms of scalability, flexibility, and adaptability. Adding new features or making significant changes required physical modifications to the hardware, resulting in longer development cycles and increased costs.

RELATED: Traceable Agile – Speed AND Quality Are Possible for Software Factories in Safety-critical Industries

Rise of Software Integration

The development of processing power, the shrinking of electrical components, and greater communication choices have all made it easier to integrate software into automobiles. In order to reduce the number of ECUs and simplify the overall architecture, vehicle makers are now able to conduct several operations on a single central processing unit.

Key Software Components in Vehicles

Modern vehicles incorporate many key software components that enable advanced functionalities and connectivity, including:

1: Operating Systems: Cars now feature sophisticated operating systems that manage and coordinate various functions within the car. These operating systems provide a platform for running applications and managing hardware resources.

2: Middleware: Middleware acts as a bridge between the operating system and the applications, facilitating communication and data exchange. Middleware enables the smooth integration between different software components and ensures interoperability throughout the vehicle.

3: Application Software: Application software in vehicles includes a wide range of features, such as connectivity services, ADAS, entertainment systems, and engine management. These programs make use of user inputs, communication protocols, and sensor data to offer a positive and rich user experience.

4: Connectivity Modules: Many vehicles now come equipped with connectivity modules, such as Bluetooth, Wi-Fi, and cellular networks. These modules enable communication with external systems, including smart phones, cloud services, and other vehicles, facilitating data exchange and access to various services.

5: Sensor Integration: Sensors play a critical role in modern vehicles, collecting data related to things like the vehicle dynamics, environment, and driver inputs. Software algorithms process this gathered data to enable advanced features like adaptive cruise control, lane-keeping assistance, and collision avoidance. This is all setting the foundation for autonomous driving capabilities.

RELATED: The Impact of ISO 26262 on Automotive Development,

Fundamentals of Software Defined Vehicles

Overview of Software Defined Networking (SDN)

Software Defined Networking (SDN) is a key technology that underpins the concept of Software Defined Vehicles (SDVs). SDN decouples the control plane from the data plane in networking infrastructure, enabling centralized control, and programmability of network functions.

In the context of SDVs, SDN allows for the centralized management and control of vehicle networks, facilitating efficient communication and coordination between various software components. SDN provides a flexible and scalable framework for routing and managing data flows within the vehicle architecture.

By leveraging SDN principles, SDVs can dynamically allocate network resources, prioritize data traffic, and adapt to changing network conditions. This flexibility is crucial for enabling real-time communication and coordination between vehicle subsystems, external systems, and the cloud.

Virtualization and Containerization Technologies

Virtualization technologies play a vital role in the implementation of SDVs. They enable the creation of virtual instances or virtual machines (VMs) within vehicles, allowing multiple functions to run on shared hardware resources.

Virtualization provides several benefits like resource optimization, improved scalability, and simplified management. By utilizing virtualization, manufacturers can consolidate functions onto a single hardware platform, reducing hardware cost and complexity.

Containerization technologies like Docker and Kubernetes are also gaining popularity in the automotive industry. Containers provide a lightweight and portable method for packaging applications and their dependencies. They also enable the isolation of applications, allowing for efficient resource utilization and simplified deployment across different vehicle platforms.

Containerization further enhances the flexibility and agility of SDVs, enabling the seamless deployment and management of software components within the vehicle ecosystem.

Centralized and Distributed Architectures

SDVs can be implemented using either centralized or distributed architectures, depending on the specific requirements and design considerations.

Centralized Architecture: In a centralized architecture, a central processing unit (CPU) or a powerful computing platform acts as the brain of the vehicle. It hosts the control logic, manages software components, and coordinates communication between different subsystems. The centralized approach simplifies hardware complexity and facilitates efficient resource utilization. However, it also poses challenges related to single points of failure and potential performance bottlenecks.

Distributed Architecture: In a distributed architecture, software functions are distributed across multiple computing platforms or ECUs within the vehicle. Each ECU handles specific functions or subsystems, such as powertrain, chassis, or infotainment. Distributed architectures offer improved fault tolerance and performance optimization. However, they require robust communication protocols and coordination mechanisms to ensure seamless operation.

The choice between centralized and distributed architectures depends on factors such as the complexity of the vehicle’s functions, performance requirements, scalability, and safety considerations.

This has been part 1 of a three-part blog series, stay tuned for parts 2 and 3 of this series. Click HERE to download the “Software Defined Vehicles: Revolutionizing the Future of Transportation” whitepaper.

In many ways, 2021 was a continuation of the changes brought about in 2020, a year that’s been described as “unprecedented” and “unparalleled.” In a unique way, 2021 has offered us an idea of evolving innovations and technology on the horizon for teams across industries. These changing conditions will present a variety of new landscapes and will offer unique challenges, opportunities, and more than likely, many surprises.

As we enter a new year of further changes, Jama Software asked select thought leaders – both internal and external – across various industries for the trends and events they foresee unfolding over the next year and beyond.

In the final part of our five-part series, we ask Alan Demers, President of InsurTech Consulting, LLC, to weigh in on product and systems development trends he’s anticipating for the insurance industry in 2022 and beyond.

Read our other 2022 Industry Predictions here: Part One – Engineering Predictions, Part Two – Medical Device Predictions, Part Three – Automotive Predictions, and Part Four – Aerospace & Defense Predictions.  

Insurance Predictions 

Design Trends

Q: What are the biggest trends you’re seeing in the insurance industry right now?

Alan Demers:

There are several noteworthy trends to consider and I think it may be helpful to divide them into insurtech related and general insurance ecosystem categories. The sustained emergence of insurtech is driving and inspiring growth in a variety of concepts like telematics usage-based auto insurance, use of geo-spatial, 3-D modeling and social data for underwriting and automation and digitalization of insurance are a few trends already underway. Artifical intelligence for predictive uses and conversational AI for services are gaining momentum while image analytics for virtual inspections has really taken off and is being broadly adopted by insurers and their customers. The ambition for insurers to automate and lower costs was met with an obvious surge in touch-free services because of Covid 19 which only added fuel to a burning fire. These are just a few examples among dozens of insurtech themes with countless solution providers joining the ranks each quarter, whether a startup or incumbent.

Overall, property and casualty insurance (P&C) ecosystem trends include; mergers and acquisition (M&A) activity among independent agency distribution and growth in direct channel sales among auto, home and small business. Post-pandemic return to miles driven and changing driver behaviors resulting in higher frequency of accidents and automobile technology, inflation and supply chain influences raising severity or cost of repairs. Insurance carrier legacy system transformational and cloud migration efforts are broadening. Cyber and climate /weather exposures, and social inflation (e.g., jury awards) are among the top trends as well.

Q: How will they impact insurance product, systems, and software development?

Alan Demers: Many of these trends are creating new and different product demand for changing exposures, like cyber risks, or to address competition and differentiation agendas. Consumer demand for ease of doing business will make concepts like embedded insurance models more popular, especially at point of purchase. Similarly, car manufacturer and insurance carrier partnerships will take usage-based-insurance, connected car features including on-board payments and services to a new level.

With respect to system development, insurer’s legacy core system transformations are separating carriers. Those carriers which have completed a policy administrative system transformation may be better positioned to accelerate product development. For example, taking advantage of new data feeds, API’s and partnership integrations that were previously on the back burner. Those carriers have not yet or are just beginning to address their core systems will be playing catch up because of the enormous costs, internal resources, and time required.

Overall competing priorities and deciding which areas to invest (core systems, insurtech development, new products, or automation choices) will continue to challenge insurers in terms of cost and deployment of finite resource availability.

Biggest Challenges

Q: What are some of the biggest challenges you think the Insurance market will be working to overcome in 2022?

Alan Demers: I think it is helpful to look at current year challenges understanding that the insurance industry tends to take the long view, both retrospectively and projecting forward. So far in 2022, talent competition is intensifying on top of managing remote and hybrid work teams. Given the industry is so traditionally people centric, sustaining employee productivity and collaboration will be put to the test as “return to the office” elongates and evolves.

In addition to changing workforces, cost reduction or expense ratio pressures because of the highly competitive marketplace will remain a priority. This means more automation and other areas of cost cutting focus. Profitability, in select areas like commercial auto and trucking lines which have been problematic over the last several years.  Weather related risks and recent increasing reinsurance costs cause insurers to balance higher premiums and policyholder retention during a time when catastrophic events are increasing. Prioritizing exploration of new automation and insurtech investments while making gains through implementation and scaling other concepts already underway will remain a hurdle in 2022.

RELATED POST: The Top Challenges of Property Casualty Insurance Product Development

Regulations  

Q: What changing regulatory guidelines do you anticipate having an impact on companies in 2022?

Alan Demers: Individual state regulations are constantly changing and updating in an already complex legal environment. However, consumer privacy and info-security will continue to be top areas of regulatory focus as insurers adopt new technology and partner with more startups. Again, we should expect more of the same in an already highly regulated industry which feeds into creating and sustaining a risk averse climate which can impede insurtech progress.

Tool Innovation

Q; From an insurance market toolset perspective, what are some of the processes you think forward-thinking firms will be working to leverage or incorporate into their process and why?

Alan Demers: The “why” portion is fairly straightforward to answer and is related to the highly competitive insurance market itself. Specifically, tools that will help automate and thus lower operating costs, differentiate to retain or grow customers and capabilities which may avoid or reduce losses are all promising motivators.

Insurers are working to advance self-service tools and greater digitization of process maturity to increase adoption. This has come a long way with much more room to improve, particularly when insurance services are compared to other industries like e-commerce or banking in terms of both adoption and satisfaction. Application of artificial intelligence (AI) for conversational, predictive, and computer vision applications are still early on and insurers are making investments and striving to apply them effectively. Doing so, will make insurance personalization, better pricing accuracy and also speed up, quote, bind and underwriting steps benefiting consumers while gaining efficiency in tandem.

RELATED POST: Customer Story: Farm Bureau Insurance Selects Jama Connect to Reduce Time-To-Market

Predictions

Q: What do you think will remain the same in your industry throughout 2022?

Alan Demers: In auto and homeowner lines the fight for market share gain within the top 10, especially the top five will remain. Expect to see more insurtech advancement due to high venture capital investment levels and as startups move through maturity cycles or get snatched up by insurers. The insurance ecosystem and large solution provider market places are expanding and will add partners making it somewhat easier insurer access. Overall, expect to see a relatively conservative, slow moving industry despite moving quicker than ever before. Like it or not, the US insurance industry is mainly a 100+ year conservative space.

Q: What do you predict for regulation in the Insurance market in 2022?

Alan Demers: One of the more talked about regulatory threats is the use of credit scoring which could be banned beyond states like CA, and recently in WA.  Credit scoring is a heavily relied upon rating variable and predictive of future losses, despite growing concerns about fairness. Elimination of credit scoring could further pressure pricing and segmentation accuracy as carriers have come to rely upon credit scoring models for many years. Some carriers are better positioned with other rating variables and telematics and driver behavior programs.  It is possible that some insurers could involuntarily reduce credit scoring and replace with driver scoring instead.

Q: Will those trends still be prevalent 5 years from now? 10 years?

Alan Demers: The way P&C insurance has changed since 2015 makes the next 5-10 years exciting to think about. For example, autonomous/connected/electric vehicles will be more advanced and prevalent in market and will further shape liability, insurable risks and insurance products themselves. Many of the other trends such as automation efforts, AI solutions, sensor technology for loss avoidance and detection and cyber crime exposures are likely to be in the insurance forefront in 2027-2032.

Thanks for tuning into our 2022 Predictions Series!

To see some of the incredible products, software, and systems our customers are building with Jama Connect, visit our CUSTOMER STORIES PAGE.

READ MORE

This post is part of a series written by Alan Demers, founder of InsurTech Consulting and author of Insurance Thought Leadership. Stay tuned in the coming months for more.  

The Top Challenges of Property & Casualty Insurance Product Development   

Today’s P&C Insurance landscape is both vibrant and facing major disruptive change.  With the top 10 carriers commanding well over 70% of the personal lines, auto and home insurance market and hundreds of additional carriers making up the balance, things were already highly competitive.  Growth in digital channels has altered insurance shopping and buying behaviors adding to the commoditization trend of insurance products, making it easier than ever to switch carriers, especially for auto insurance. Telematics for auto, IoT, and smart home technologies are engaging consumers differently and offer the benefit of avoiding and mitigating losses as the industry shifts towards risk prevention from traditional sole protection and indemnification models. These are just a few noteworthy trends among a host of automation efforts, new insurance models and products – all happening throughout the recent insurtech movement. 

Commercial lines continue to become more vertically specialized, particularly in small business lines. New insurtech entrants tend to focus on disrupting select product lines where larger, multiline established carriers may underserve certain business owners and markets. 

The P&C industry is moving through a broad range of innovation with over $15 billion during 2021 in venture capital investment and scores of outside influences converging on this 100+ year industry like never before. Meanwhile, established carriers are pushing through multi-year legacy system transformations, heavily investing in innovation while striving to modernize core processes which have historically been manual and people centric. 

Each of these variables are pressuring insurers to lower operating costs while automating and launching new products to differentiate and compete in protecting market share with only a handful of carriers capable of gaining share. New products and revisions to existing insurance products demand calls for rapid speed to market vs. traditional launch times that typically span up to a year or longer. The insurance product development process is highly dependent on effective requirements management and constant cross-functional team collaboration, which is vital to avoid costly delays, defects, and premium refunding due to undetected errors. 

RELATED POST: A Guide to Requirements Elicitation for Product Teams

Challenging Remote Workforce Barriers

Insurers are highly people driven organizations and are well-known for having siloed organizations given the pervasive scale and specialized work teams. When it comes to developing and launching a new insurance product – it truly takes a village. Stakeholders and contributors span from several highly specialized areas, including actuarial, pricing, underwriting, legal, claims, marketing and distribution to name a few. Thus, collaboration does not always come naturally nor easily.  Associate engagement and company culture are top priorities and having the right tools and technology can make a big difference given that much of insurance product development relies on, legal research, specialized rate making expertise, approvals and decisions often made through emails and organized via spreadsheet tracking.  Some use collaboration platforms and shared drives, which can be helpful but lack versioning, baselining, uniformity and most importantly change and impact analysis due to ineffective live traceability.   

While carriers are adopting automation, much of the attention is on gaining new customers, services, distribution, and overall efficiency gain. Digitization, self-services, and artificial intelligence for predictive analytics are a few examples. New data sources, such as geospatial and personalized data and image analytics are being leveraged from underwriting to claims management. Automation of internal processes such as pricing (ratemaking) and product development have seen lesser insurtech funding and focus and tend to be less obvious or viewed as more complicated areas to solve in comparison. Leading insurance companies have recognized these processes must receive greater attention to drive competitiveness and increased speed to market.

Speed to market and quickness to revise and modify products have many obvious benefits in today’s highly competitive P&C insurance marketplace.  Most would agree that the typical insurance policy itself is quite complicated. A look behind the scenes at the process of pricing, rate making and filings with respective state departments of insurance along with attendant policy administration and IT programming is where the real complications begin.  After all, insurance premiums are priced on an individualized basis by design. In other words, each consumer, or segment of customers more realistically, have differing risk profiles and thus different price points which can number in the thousands of different rates for a single product.  

RELATED POST: The Real Intent of Model-Based Systems Engineering (MBSE) – Keeping Up with Complexity

Industry Regulations

The US insurance industry is regulated on an individual state level through each respective department of insurance, responsible for approving products and regulating rates among other consumer protection focal areas. Additionally, each state has a bevy of insurance regulations, statutes and common laws and each insurer has differing marketing, regional considerations and so much more to balance when it comes to launching new products. With all of this in mind, it is easy to see how errors can be made or interpretations might differ, only to be discovered at a later time, which adds cost and increases regulatory scrutiny.  

 There is a lot to be said about doing things right the first time by being able to test, trace and apply impact analysis early and often. The consequences of product defects are most visible during so-called market conduct studies performed by departments of insurance which can result in penalties, fines, and premium refunds. Or, a carrier may self-discover a defect and proactively take measures. Either way, the amount of resources and efforts to identify root causes and deploy remediation measures are extremely costly and often harmful to the brand itself. Less visible scenarios can occur during product development cycles and simply result in time delays, re-work and fixes which account for the extra time to launch or altogether delay and avoid making revisions to existing products.  The stakes are high in terms of costs and missed opportunities. Insurers investing in tools and technologies to build insurance products better and more efficiently can enjoy a competitive advantage.