Direct Insurances Product Development Procedures

Direct Insurances

Product Development Procedures

Direct Insurances –

Product Development

Procedures

> strength >>

> expertise

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Table of Contents

1. INTRODUCTION ......................................................................................................................................... 5

1.1. PURPOSE OF THIS DOCUMENT ........................................................................................................... 5 1.2. ABOUT THIS PROCEDURE MANUAL ..................................................................................................... 5 1.3. PRODUCT DEVELOPMENT PROCESS - OVERVIEW .............................................................................. 5 1.4. PROJECT MANAGEMENT FRAMEWORK ................................................................................................ 5

2. PRODUCT DEVELOPMENT PROCESS ................................................................................................ 6

2.1. VARIATION TO THE STANDARD PROCESS ............................................................................................. 6 2.2. PROCESS - CONSIDERATIONS ............................................................................................................. 8 2.3. PRODUCT DEVELOPMENT PROCESS MAP (REFER TO APPENDIX 4.4 FOR CHECKLIST).................... 9 2.3.1. PRODUCT DESIGN ......................................................................................................................... 10 2.3.1.1. DEVELOP PRODUCT CONCEPT ..................................................................................................... 10 2.3.1.2. DEVELOP PRODUCT SPECIFICATION............................................................................................. 11 2.3.1.3. SEEK PROJECT FUNDING .............................................................................................................. 12 2.3.1.4. ASSESS PRODUCT RISK ................................................................................................................ 12 2.3.2. PRODUCT DEVELOPMENT ............................................................................................................. 14 2.3.2.1. DESIGN AND BUILD SYSTEMS ....................................................................................................... 14 2.3.2.2. DEVELOP MANDATORY DOCUMENTS ............................................................................................ 15 2.3.2.3. DEVELOP MARKETING DOCUMENTS ............................................................................................. 15 2.3.2.4. DESIGN AND PRINT ........................................................................................................................ 16 2.3.3. LAUNCH ......................................................................................................................................... 18 2.3.3.1. DISTRIBUTION ................................................................................................................................ 18 2.3.3.2. ROADSHOW/ TRAINING .................................................................................................................. 18 2.3.3.3. IT SYSTEMS RELEASE .................................................................................................................... 18 2.3.3.4. POST LAUNCH ................................................................................................................................ 18

3. GLOSSARY ............................................................................................................................................... 19

4. APPENDIX ................................................................................................................................................. 20

4.1. THE GENERIC PROJECT LIFECYCLE (GPL) ....................................................................................... 20 4.2. PRODUCT PRICING APPROVAL PROCESS (PPAP) GUIDE ................................................................ 22 4.3. PRODUCT DISCLOSURE STATEMENT ISSUE AND MAINTENANCE PROCESS ..................................... 22 4.4. PRODUCT DEVELOPMENT PROCESS – CHECK LIST .......................................................................... 23

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Information Sheet Version Control

Version Author Date Changes

1.0 G.Bajpe/ T.Nelson/ P.Geeves

9/11/ 2009 Initial Draft

Various Amendments

Review and Sign-Off This Guide has been reviewed and signed off by the following persons: Name Position / Title Date

Direct Insurances Executive Team

Craig Harrison Head of product

Tony Nelson Senior Product Manager – CCI

Pip Geeves Senior Product Manager – Direct Life

Ganesh Bajpe Senior Product Manager – GI

Sonia Anand DI Risk and Compliance Manager Document Ownership The document owner, the Head of Product has responsibility for:

Maintaining / updating of this document

Document Review Timetable

This document will be reviewed and updated annually or earlier as required.

Updates to this Guide will follow requests from the business, as a result of industry, economic or market changes, or in response to changes in INGA strategy.

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1. INTRODUCTION

1.1. Purpose Of This Document

The purpose of this document is to outline the Product Development Procedures (PDP) to be followed by Direct Insurances product management team for new and existing products.

The processes, models and procedures contained in this manual are to provide a guide for product development activities. This is a living document which will be updated from time to time, to reflect new and improved practices, changes in the market environment, ING Australia (INGA) organisational imperatives and changes in legislative requirements.

This document contains all the necessary steps and tools to develop and enhance products and covers Direct Sold Life, General Insurance and Consumer Credit Insurance Products.

1.2. About This Procedure Manual

This manual should be read and adhered to by all product managers within Direct Insurances and cross functional teams involved in product development initiatives. This manual will be reviewed and updated periodically to ensure it reflects the most efficient work practices.

The sequence of tasks can vary from project to project and, in the interests of brevity, a streamlined approach has been taken in documenting most activities. In certain situation some of the activities may be undertaken in parallel depending on the project approach. Repetitive tasks generally have only been covered once.

For example, planning is an on-going activity which occurs from start to finish in every project, with updates to project management plans, project schedules, Cost Benefit Analysis, communications etc. Likewise, status reports are required fortnightly for identified projects.

1.3. Product Development Process - Overview

The diagram on the following pages provides an overview of Product Development Process and key activities / milestones in the development of Direct Insurances products. The product development process documented here is applicable to all product development activities within the Direct Insurances business unit.

Whilst an attempt has been made to capture the correct sequence of tasks, the sequence may vary from project to project, depending on special prevailing circumstances. These are explained further in later sections of the document.

1.4. Project Management Framework

This manual contains links and references to the Project Management Framework. This framework is a business focused subset of the Generic Project Lifecycle (GPL), the project management methodology used throughout INGA.

GPL templates have been referenced throughout this manual, as these are required deliverables as part of the product development process.

All projects requiring involvement by IT must use certain templates conforming to GPL standards and all these procedures have been structured accordingly. An overview of the PMF is provided in Appendix 4.1.

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2. Product Development Process

2.1. Variation to the standard process

The nature of product development falls into the following broad categories:

1. New product development,

2. Significant change or enhancement to existing products, and

3. Cloning an existing product that is, white labeling existing products. This may also include some non-material product changes.

Generally the activities listed in the process are common across all products and product development categories listed above with varying degree of work effort for certain activities depending on the nature of the development. For example, the process of product concept development and approval may involve significant amount effort for new products but may not be the case for simple product changes.

The variation to the process will arise with respect to the following approval process:

Approval of product concept and changes – Direct Insurances Executive Team (DIET) versus Project Governance Board

Approval of project funding - Direct Insurances Executive Team (DIET) versus Project Governance Board

Approval of product by pricing committee – ALCO approval, Product Approval Report, Product Pricing Memo, Product Risk Assessment and PDS verification

The nature of product development falls into 3 generic categories:

1. New product

A ‘new" product is a product that is not currently offered by either by ING or ANZ brand. The ’new’ product is subject to the full Product Pricing Approval Process (PPAP), which will require compliance with the INGA Generic Project Lifecycle methodology for project management, a Product Approval Report (PAR) and a Product Risk Assessment (PRA) to be completed.

Note: For a non-INGA manufactured product a Product Pricing Memo (PPM) and a Product Risk Assessment is to be completed.

2. Changes to existing product

Where an existing product has an update to features or benefits, or pricing (for example), there is a requirement for some level of development and approval, but generally this does not require a full project lifecycle or full approval.

If an existing product has had a Product Approval Report (PAR) and a Product Risk Assessment (PRA) previously completed, and a ‘new’ product feature is being added (for example full building replacement cover added to the existing Home Insurance product) then a Product Pricing Memo (PPM) and a Product Risk Assessment (PRA) are to be completed.

Price reviews:

Where a product has not had a PPAP and the product is being re-priced then a PAR and Product Risk Assessment (PRA) are required.

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Where a product has been subject to a PPAP process before (i.e. PAR and PRA), then there is no need to complete the full PPAP documentation for each price change, provided that there is no material change in the product design, conditions or administration. A Product Pricing Memo (PPM) is required.

3. Cloned or cloning of product Changes within the agreed framework of a product fall into this category. An example is where a specific product offer has limited maximum sum insured benefits offered to customers. A product name change may also fall into this development aspect. White labeling an existing product for a specific distribution channel with no change to the product features and benefits would be another example.

Where there are non-material changes in product design, conditions or administration (e.g. re-branding) then a Product Pricing Memo (PPM) is to be completed.

Otherwise the changes are to be subject to the full PPAP process (i.e. PAR and PRA) unless PRA and PAR already exist for these products in which case they do not need to be completed .

The Chief Actuary will make the determination if the planned changes are of a non-material nature or not.

Note: Where an existing product is replicated (i.e. cloned) and the features, pricing etc., are altered, then the Chief Actuary will determine if these changes constitute a material change.

Regardless of the type of change, all product developments do require some level of approval, as well as a risk management and due diligence framework. The table below illustrates the approvals required for each type of development:

A. New Product

B. Changes to existing product

• Features

• Price

• Re-insurance

C. Cloned or Cloning of product

• New name

• New issue date

• Small ancillary benefits

• DIET product approval

• PGB approval if >$500k

• ALCO approval (PPAP)

• PRA

• PAR

• PDS Verification – Legal & RM

• DIET product approval & BAU funded

• Product Pricing Memo (if PRA, PAR exist)

• PR, if no prior PRA exists

• PAR if no prior PAR exists


• DIET product approval & BAU funded

• Product Pricing Memo (if PRA, PAR exist)

• PR, if no prior PRA exists

• PAR if no prior PAR exists


Material changes

Non-material changes

Existing parameters (within existing pricing,

communications or

feature boundaries)

Minor enhancements (small ancillary benefits

Or promotional offers)

Chief actuary

decision

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2.2. Process - Considerations

The following points to be noted in relation to the process activities listed in the process map:

Activities being performed simultaneously: Some of the streams of work may be performed in parallel, for example, Development of Mandatory and Marketing Documents; commencement of systems design while the details of product specification are being finalised.

Variation to the sequential order of tasks: Some of the process tasks may not follow the same sequential order indicated in process map depending on the project circumstances. For example, Product Risk Assessment may be preformed after the Design and Build Systems activity. Whilst an attempt will be made to capture the correct sequence of tasks, the sequence may vary from project to project, depending on special prevailing circumstances.

Variation to tasks: The tasks and their details may vary depending on the product, the nature of product development, the distribution channels impacted and the business entities involved (includes distribution and insurance partners). These requirements will be determined as part of the project management activity.

Stakeholder engagement:

o Stakeholders from all impacted areas need to be considered for engagement in the product development process (product, service/operations, marketing, IT, legal, compliance, underwriting, re-insurance, corporate finance, corporate communications, sales, distribution partners, insurance partners and the Executive Board).

o The key stakeholders and the process of engaging these stakeholders may vary depending on the product, the nature of product development, the distribution channels impacted and the business entities involved (includes distribution and insurance partners). These requirements will be determined as part of the project management activity.

o Stakeholders from Underwriting and Legal/Compliance will need to be engaged in all types of product development activities.

Approval process: The product development process is underpinned by the following guidelines for effective project risk management

o The Generic Project Lifecycle (See Appendix 4.1): The Generic Project Lifecycle (GPL) is INGA's methodology for managing projects.

o This Product Pricing Approval Process Guide (See Appendix 4.2): The Product Pricing Approval Process (PPAP) guide provides an oversight of elements relevant to the pricing, financial and risk analysis process.

o Product Disclosure Statement (PDS) Issue and Maintenance Process (See Appendix 4.3): This Policy sets out INGA’s requirements for issuing, publishing and on-going use of the PDS for all Financial Products offered by INGA or any of its subsidiaries.

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Field Code Changed

2.3. Product Development Process Map (Refer to Appendix 4.4 for checklist)

Develop Product

Concept

Seek Project

Funding

Generate Idea Conduct Feasibility Study Seek Input from key stakeholders – Underwriters, distribution, Customer Service, technology, Legal & Compliance, Reinsurers Seek Input from Partners (External Underwriters / Distributors) Prepare Concept Brief (Incl. High Level Product / Business Specifications and Governance Model) Prepare DIET Submission Stakeholder approval

Prepare Project Initiative Brief Est. IT and Business Costs (Level 1 Est.) Final Business Requirements Refine IT & Business Costs & develop solution design (Level 3 Est.) Prepare CBA (Cost Benefit Analysis) Develop Project Plan Prepare DIET or PGB (if costs is > $500k) Submission Stakeholder Approval

Design

Define Marketing Documents (Training, Underwriting manuals,Sales Brochures, Scripting, Customer Comm’s, Campaign Material, Web Content) Develop Content for Marketing Documents Distribute Marketing Documents for Stakeholder Review and Comments Update Marketing Documents Stakeholder Approval

Define Product Features / Benefits & policy T&C Establish Underwriting Requirements Establish Pricing & Reinsurance Models Establish marketing & training requirements (incl updates to underwriting manuals) Prepare Business requirements

Stakeholder approval

Define Requirements for Offer Documents (PDA and Fulfilment Documents) Develop Content for Offer Documents Prepare Stakeholder Verification Form Distribute Offer Documents for Stakeholder Review and Comments Update Offer Documents Stakeholder Approval

Develop “Proof” Version of Offer and Marketing Documents Stakeholder Review & Sign-off Complete Stakeholder Verification Form (PDS Only) (& Quarterly Assurance Report to the Board) BU Executive Director approval Print Upload to Intranet & Internet

Product Concept Approved

Product Specification

Approved Mandatory Documents

Signed Off

Marketing Documents Signed off

Documents approved &

printed

Product Launched

Funding Approved

Develop Product

Specification

Develop

Mandatory Docs

Develop Marketing

Documents

Design &

Print

Development Launch

May be performed in parallel

Despatch to Distribution Points Conduct Road Show Deliver Training Release IT systems into production Complete systems Post Verification Testing Sign off by product manager Lodge in-use notice with ASIC File all documentation

Distribute &

Launch

Design & Build Systems

Prepare detailed functional specification (both for POS and mainframe) Develop detailed technical design Develop test strategy and plan Build Systems Perform testing – Unit, Systems and UAT Sign off by product manager Production support handover

IT Systems build completed

Establish product approval requirements Determine approving authorities (BU-ED, pricing committee, ALCO, Board) Complete product approval documentation

PPM – Prod Pricing Memo

PAR - Prod Approval Report

PRA - Prod Risk Assessment

Submit documentation Stakeholder Approval

Assess

Product risk

Risk assessed & Product

approved

LEGEND: Approvals

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2.3.1. Product Design

The Product Design function encompasses key activities of Product Concept, Project Funding and Product Specification Approval which is critical in the development of new and existing products.

Set out below are the key sub activities and suggested topics that should be covered and included in presentations to key stakeholders (Including DIET, Direct Insurances Executive Team) in order to make informed decision whether to proceed with the development of new and existing products.

2.3.1.1. Develop Product Concept

The following key topics to be considered (as appropriate) in the preparation of concept brief:

Business situation and challenge

o Market/industry trends

o Customer requirements / demands

o Competitor activity

o Legislative requirements

o Financial performance

o Profit hurdles

o New Business Premium and Policies

o Retention

o Claims and underwriting experience

New product concept or proposed enhancements

Feasibility

o Product pricing

o Claims and underwriting

o Distribution

o Financial performance (as outlined above)

o Customer service and operations

o Marketing communications

o Technology implications

o Competitive position

o Compliance and risk management

Project governance

o High level implementation plan/approach

o Project organisation

o Key issues and risks

o Resourcing

Engage key stakeholders from product and underwriting (including underwriting partners), distribution, customer service and operations, technology, legal and compliance, and reinsurers.

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2.3.1.2. Develop Product Specification

Key areas to be considered (as appropriate for the project):

Product or enhancement description

Strategic Fit

Scope of change

Key Areas of Risk

Commercial Analysis

Economic Environment

Competitors

Target Market

Distribution Strategy (Incl. IT)

Sales

Service

Claims

Support

Marketing

Communication to stakeholders – internal and external

Product

Product Features / Benefits / Exclusions

Pricing

Reinsurance

Commission Structure

Branding

Profit Sensitivity Analysis

Business Requirements:

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2.3.1.3. Seek Project Funding

The business requirements document will be distributed to all business areas impacted by the project to enable them to plan for the development phase, including:

IT – detailed analysis of the requirements to develop work effort estimates. This may require convening workshops as necessary to obtain business responses to technical design issues etc. to help with the development of functional specifications.

Underwriter/distributor system – similar analysis of the product specification, usually in conjunction with IT to assess the various business impact areas eg. systems, procedures, training and customer service, within their particular operational areas.

Product will engage with key stakeholder groups to initiate the necessary sub-projects within each of the affected business units, to successfully deliver the project end to end.

Stakeholder areas will be requested to provide product with key milestones for their sub-projects and to attend regular project meetings to report and review progress.

Sample documents/ templates:

Project or Concept Brief:

Business Requirements Document: At this stage of the process the business requirements document needs to include key requirements but not the complete detailed requirements. (See Develop Product Specification for template)

Cost Benefit Analysis

2.3.1.4. Assess Product Risk

The outcome of product risk assessment is the approval of product by the relevant approving authorities. This product risk assessment and approval process may take a number of different forms, depending on the nature of the product development. The guidelines provided by INGA’s Product Pricing Approval Process will be followed (See Appendix 2).

The Product Pricing Approval Process (PPAP) guide provides an oversight of elements relevant to the pricing, financial and risk analysis process. In situations where this Guide does not provide specific guidance, the Chief Actuary will provide that guidance. The PPAP is aimed at improving the management of INGA product portfolio by ensuring:

o Clarity in task ownership and transparency

o Compliance with regulatory requirements

o Consultation with relevant subject matter experts

o Understanding of the related processes by stakeholders

o Identification of dependencies and related constraints

o Alignment of product initiatives with the overall INGA strategy

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o Product pricing meets INGA hurdle rates (i.e. minimum return on investment)

o Mitigation of risks from inadequate internal processes, people and systems or from external events

o Timely introduction of new products and modification of existing products

Product Risk Assessment (PRA) template

Product Approval Report (PAR) template:

Formatted: Default Paragraph Font

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2.3.2. Product Development

The Product Development function encompasses key sub activities of Design and Build Systems, Develop Mandatory Documents, Develop Marketing Documents, Design and Print and Risk Assessment in the development of new or existing products.

Set out below are the key sub functions and the topics that should be covered and included in presentations to key stakeholders (Incl. DIET) in order to make informed decision whether to proceed with the development of new and existing products.

2.3.2.1. Design and Build Systems

This activity focuses on the design and build of IT systems and INGA project management and systems delivery methodology will be adopted. The delivery of systems is a key driver for planning a product release. At times, IT systems design may run parallel with product specifications development.

The key activities to meet project milestones are:

Precursor activities to execution

Completion and signoff of business requirements

Development of solution design

Final cost estimate

Fit to release schedules & compatibility review

Resource availability and planning

Activities within the execution phase

Preparation of detailed functional requirements, an output of business process and systems analysis based on the product specification

Develop technical/solution design

Develop test strategy and plan

Build systems (both point of sale and mainframe)

Perform testing – unit test, systems test and UAT (and load\performance if required)

Product support handover once the system is successfully delivered.

Functional Requirements (template):

Solution design: (template)

Test strategy and plan (template):

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2.3.2.2. Develop Mandatory Documents

In the development of existing or new products key consideration should be given to the changes or development of the following documents;

Product Disclosure Statement

Supplementary PDS

Policy Document

Financial Services Guide

Quotes

Welcome letters

Policy schedules (Certificate of insurance)

Endorsements

Cancellation / Lapse

Statement of Advice

Claims Form

Direct Debit Authority

Application Form

Renewal letters

In this step, the deliverable is the development of the product content for mandatory documents and getting approval by stakeholders. Product content development involves creating the content in a word document (in the case of a new product) or marking up the changes on the existing document. The approach will be agreed in consultation with marketing (design team) and relevant stakeholders. Once the content is signed off, the documents are handed over to Marketing (Design) for design and development of the artwork.

2.3.2.3. Develop Marketing Documents

In the development of existing or new products key consideration should be given to marketing materials required, in consultation with the Marketing Team.

Consideration should be given to the type of documents listed below the development of existing or new products in order to identify whether they are required to be developed or changes need to be made to existing material.

Customer Product Brochures

Multi-product brochures – eg. Insurance omnibus or Credit Card brochure

Web content (Internet and Intranet)

Visual display materials - eg. Posters, web banners

FAQs

Sales and customer service scripts

Training modules - eg. eTrain, INSURE program

Staff guides - eg. quick reference guides, FAQs, Staff briefing documents

Marketing will manage the creation of marketing documents and are responsible for gaining sign off of document content with the following stakeholders. The stakeholders would be determined depending on the nature of the project and which entities would be impacted.

Phase 1

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ING Product Managers

ING Legal

Claims or customer service department where required

ANZ (one ANZ sign-off is to be received by ING. ANZ marketing is to ensure that this includes ANZ Product, Legal and marketing sign-off)

Brand

Phase 2

QBE (one QBE sign-off is to be received by ING. QBE account manager is to ensure that this includes QBE Product, Legal and marketing sign-off)

BUPA or other external organizations as needed. (The point of contact within the organization is to ensure that this includes QBE Product, Legal and marketing sign-off)

As a general rule, once sign-off of content has been achieved no further content changes would be made.

2.3.2.4. Design and Print

Once mandatory document and marketing content has been approved, marketing will then manage design and print as required.

Key marketing tasks include:

Developing the design proof

Managing stakeholder review and feedback on first design proof

Developing proof and ensuring necessary changes are made

Ensuring Product Management team have completed Stakeholder Verification Form if the document is a PDS

Managing sign-off on final proof for Print, including gaining brand approval using

o Brand approval signoff form

o Direct Insurance Compliance authorisation form

Managing printing of document. Best practice allow 7 days for printing

Managing distribution of document. Best practice allow at-least 2 weeks for distribution

Key Product Management tasks include:

Use the stakeholder verification form to ensure that all stakeholders have reviewed appropriate sections and provided their approval on. INGA’s “Product Disclosure Statement – issue and maintenance process” will be the basis for content verification and approval.

Ensure CARM sign off prior to ED approval; once ED has approved then send documents to print

Completing Product risk assessment

Print sign off:

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PDS verification:

Product Disclosure Statement (PDS) Issue and Maintenance Process (See Appendix 3): This Policy sets out INGA’s requirements for issuing, publishing and on-going use of the PDS for all Financial Products offered by INGA or any of its subsidiaries.

Key tasks include:

Define requirements for offer documents - Structure/format of the PDS and organisation of content

Determine key stakeholders to be engaged – Legal, compliance (CARM), product, distribution (branches, call centre), design, brand, corporate communications, printers and mail house

Assign responsibilities for review

Review and confirm the content and /or changes with Product

Develop a project schedule for document design, printing and mailing

Develop the artwork (“proof version”) of the documents

Review and proof read the documents – ensure that they are of the required standard and quality

Engage stakeholders to review and approve the artwork

Use the stakeholder verification form to ensure that all stakeholders have reviewed appropriate sections and provided their approval as per the guidelines outlined in the INGA’s “Product Disclosure Statement – issue and maintenance process”

Obtain approval from CARM

Obtain ED approval

Go to print

Review printed documents

Send copies of the documents to key stakeholders

Liaise with key business stakeholders to arrange for documents to be uploaded to the Intranet / Internet as required.

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2.3.3. Launch

2.3.3.1. Distribution

Marketing team to distribute mandatory documents and marketing documents to the appropriate channels (Stream, POS systems, distributor’s web sites or distributors’ intranet site).

2.3.3.2. Roadshow/ Training

Deliver roadshows - key stakeholder communication, executive briefing, BDM communication

Deliver training – BDM training, call centre training, test run call centre scripts

Training may involve presentations and / or system demonstrations

2.3.3.3. IT systems release

Release all systems changes into production

Conduct Production Verification Testing – appropriate business stakeholders to test and approve

2.3.3.4. Post launch

Brief key business stakeholders on the launch – executives, board

Lodge In-Use notice with ASIC

Retain and file all documents (during product development/approval, final PDS/Policy document, signed verification form, ED approval and a copy of in-use notice lodgement) in due-diligence file

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3. GLOSSARY

ACRONYM DESCRIPTION

ALCO

Asset & Liability Committee The ALCO provides ownership, accountability, monitoring and transparency around product pricing, investment risk and investment performance.

BAU Business As Usual; For funding purposes, BAU refers to the business unit’s opex budget.

CARM Compliance & Risk Management

CBA Cost Benefit Analysis for the project.

DIET

Direct Insurances Executive Team Comprises the Direct Insurances Business Unit’s Executive Director and their direct reports (functional heads and other direct reports)

GPL Generic Project Lifecycle This is INGA’s methodology for managing projects.

PAR

Product Approval Report This report is an outcome of the Product Pricing Approval Process. The Product Approval Report documents the PPAP outcomes. The Product Approval Report inclusions are intended to be the minimum requirement and further information is to be provided if relevant. The Chief Actuary may specify additional documentation where appropriate. A Product Approval Report template has been created as a guide for the minimum requirements.

PDS Product Disclosure Statements

PDP Product Development Procedures, the title of this document.

PGB Project Governance Board; INGA executive board that reviews and approves any project spending over $500k.

PPAP

Product Pricing Approval Process The Product Pricing Approval Process (PPAP) guide provides an oversight of elements relevant to the pricing, financial and risk analysis process.

PPM Product Pricing Memo. The PPM provides minimum details of the product (e.g. product profitability, pricing assumptions, key dependencies, risks, etc.).

PRA Product Risk Assessment The PRA documents the key risks for the product. The outcome of the PRA is included in the PAR or PPM.

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4. Appendix

4.1. The Generic Project Lifecycle (GPL)

The Generic Project Lifecycle (GPL) is INGA's methodology for managing projects. The use of GPL is mandatory for IT and strategic projects. It can be applied to internal business projects as appropriate.

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Project Management Framework:

(P3)

Definition\ Approval & Planning

(P4) Development (Design, Build, Test)

(P6)

Project Close

(P5)

Implement

(P1)

Idea

(P2)

Concept

Project Overview Approval by DIET to proceed with Definition phase

Submit Bus case/CBA to IT Project Office & Obtain IT Approval

Assess Needs – Procedures, Training & Non- Mandatory Documents

Develop User Procedure and Training Manuals

Complete & Initiative brief with Business Engagement, Obtain Level 1 cost estimate

Engage Stakeholders [ Rules of Engagement ]

Complete BR Secure PM

Detailed Project Plans

Review Project, Implementation Plans, Risks, Issues

Initiative Brief & Level 1 Estimate Approval by DIET

Initiate Project – Schedule, Communication & Quality Plan, Issues & Risks

Final Estimate & Solution design Secure resources & do compatibility review

Develop Detailed Test Cases, Communication Tools

Start CBA, Business Case & Updated estimates

Design and Develop PDS & Mandatory Documents

Develop Functional Specifications Define User Test Plans, Secure Resources

Conduct Post Implementation Review (PIR)

Review Project, Implementation Plans, Risks, Issues

Prepare Lessons Learned Report

Publish & Store Project Documentation

Release Project Resources, Close Project

Deliver User Training, Procedures, Product Information

Implement Solution & warranty period

Provide Post Implementation Support

Start Detailed Business Requirements / Product Specifications

High Level Business Requirements / Product Specifications

Feasibility, Strategy & Product Review, Business Case Approval

Establish Project Governance – Biz Project Manager & Sponsor

Conduct Project Kick-off Meeting

Project Delivery Plan, including Business Operational Support Needs

Define User Test Strategy and Scenarios, Test Cases & Data Needs

Perform UAT, Validate Procedures & User Training

Finalise Procedures & Training Docs, Sign-off Solution

Transfer Ownership To Business Operations & IT Production Support

Review Delivery of Business Benefits

Direct Insurances - Project Management Framework

On-Going Status/Phase Reports, Issues Logs, Risk Logs, Meeting Agendas, Minutes

Management Approval / Decision Points. Some activities may not be necessary in all instances and may be skipped.

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4.2. Product Pricing Approval Process (PPAP) Guide

4.3. Product Disclosure Statement Issue and Maintenance Process

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4.4. Product Development Process – CHECK LIST

Process step Deliverable Approving stakeholders

Completion date

Develop product concept Product concept paper

DIET, Distribution partners, Underwriters

Develop product specification Business Requirements Specification

Seek project funding Project brief

DIET for <$500k PGB for >$500k

IT Cost estimates (Level 1 & 3)

Project CBA

Project Plan

Assess product risk Product Risk Assessment (PRA)

Product Approval Report (PAR)

Product Pricing Memo (PPM)

Design and build systems Functional Requirements Specification

Solution design

Test strategy and plan

UAT completed Product Manager, Project Manager, …

Handover to production support

Develop mandatory documents

Signed off product content in the form of: * Word document OR * Changes marked up in existing pdf versions

Develop marketing documents

Signed off content for marketing collateral in the form of: * Word document OR * Changes marked up in existing pdf versions

Design and print Proof version of all mandatory and marketing documents

Signed off PDS verification form

BU ED approval BU ED and Board

Printed documents

Documents uploaded to websites

Distribution Despatch to branches, call centres, and copies to stakeholders

Training materials - presentations, manuals, scripts, training systems (eTrain, eProtect)

Product Manager, underwriters, Legal/Compliance, Distribution, Training Manager

Deliver training

Launch IT systems in production & PVT Product Manager, …

Lodge in-use notice with ASIC

Product Manager or authorised representative

File documentation Product Manager

ANZ.801.098.0693

Date post:	12-Jan-2022
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