Way2know: Business Analysis-Chapter 14: Case Study 2: Insurance Project

Chapter 14: Case Study 2: Insurance Project

Assume that a life insurance company intends to launch a term insurance product. As a business analyst you need to gather and document the business requirements for launching this product.

Let us write the business requirements for the above project in step by step manner.

1.Introduction

Insurance company planning to launch new insurance plan named “Term Life Plan”. This product needs to be setup in life insurance core application, online sales portal, Sales illustration application. This BRS will provide details of the product that enables development teams to develop and setup this new product in above mentioned applications.

2. Acronyms, Terms and Definitions

CA-Core Application OSP- Online Sales Portal SIA- Sales Illustration Application CP- Customer portal

3. Scope

3.1 In Scope

1. Product development and setup in CA, OSP, SIA and CP. 2. Day 0, Day 1…..Day n functionalities

3.2 Out of Scope

All other applications

4. Assumptions, Dependencies and Constraints

4.1 Assumptions

4.2 Dependencies

4.3 Constraints

5.Business Requirements

Set-up the product in the below applications for NB login and Issuance.

Also provide the day 2 and day 3 functionalities set-up in CA.

Product Code: TL11

Policy Term

Plan 1 - 15 years
Plan 2 - 20 Years
Plan 3 - 25 Years

Premium Calculation

Minimum Entry Age:18
Maximum Entry Age:60
Maximum Maturity Age:75
Minimum Sum Assured: 10 Lac
Maximum Sum Assured: 1 crore

Premium Payment Modes

Online
Cash
Direct Debit

Age Calculation

Illustration

Modal factors are as mentioned below

Monthly : 1
Half-Yearly : 5.66
Annual : 11.0

GST : 15%

Stamp duty: 1% for first premium, NIL thereafter for renewal premium

Commission Rates

First Premium: 10%
Subsequent Premium : 2%

Rider Benefits

Additional premium to be charged for rider benefits. All available rider benefits can be attached to this product.

Surrender Benefits

No surrender benefits payable.

Freelook Period : 15 days from date of issuance of the policy documents.

Grace Period: - 30 days for Half early and annual modes and 15 days for monthly modes.

Reinstatement: - Within 2 years from the due date of payment of unpaid premium. The reinstatement fee calculation and reinstatement process same as existing process for other plans.

Loan - Not Available

Beneficiaries / Nominee – Policy owner need to register his/her family member as nominee. Minimum one nominee should be given, maximum 4 nominees are allowed.

Premium frequency change – Allowed. Once changed waiting period is 6 months to change again. Maximum 4 changes are allowed during policy lifetime.

Accounting Entries: As per the existing Term plans

6. Functional Requirements

Please refer to the functional requirement document.

Note: Generally functional requirement documents are written by developers based on business requirement document.

7. Reports

Daily Report of sales Weekly Report of sales Monthly report of sales

8. Impacted Systems

9. Traceability Matrix

10. Non-Functional Requirements

11. Performance Requirements

12. Security Requirements

13. Checklist

Below Check list of questions are for impact analysis.

Questions for Analyzing Impact	System	Answer-Yes/No	If yes, please mention the Details
Impact to the sales team because of the change ?		No
Is there an impact on the payment gateway applications due to this change?	Payment Gateway	No
Is there any impact on the customer care center due this change? Should the personnel be informed / trained of this change?	All	Yes	New product training to be provided
Is there any change in the commission or agency hierarchy modules? If yes is there any impact on downstream applications ?	CA	No
Are there any changes to the existing emails and SMS Communications due to the current changes?	CA	No
Are there any new emails and SMS communications that are involved?	CP	No
Are there any reinsurance requirements that need to be taken care of?	CA	No
Are there are any vendors or external entities involved for any activities? If so, has the dependencies been mentioned and the development / testing approach updated accordingly?	ALl Applications	No
In case of new status codes has the impact on other downstream applications considered?	All Applications	No
In case of introduction of new status codes, has the actuarial team been included as a stakeholder? If there is any impact on any valuation or reports have these been documented?	CA	No
Are there new status codes introduced? If so has the impact on all the transactions across CA been considered?	CA	No
In case of new transactions are the eligible entry statuses and exit statuses defined and documented?	CA	No
Are there new transactions that are introduced as part of this change? If Yes, has the authorization matrix and groups been defined?	CA	No
Are there any new jobs introduced ?	CA	Yes	Batch1, Batch2
Are there any changes to existing batch job sequences?	CA	NO