Insurers Told to Ditch Project Teams for Product Model

A new industry analysis argues that insurance companies should replace project-based technology teams with product teams organized around shared capabilities such as underwriting and claims.

The report, published by an insurance technology consultancy, says organizational silos start with structure rather than communication. When carriers arrange teams by business unit, technology and data practices follow the same vertical pattern. Each unit builds its own systems for similar problems, creating fragmentation that is hard to reverse.

The recommended fix preserves the deep expertise each line of business needs – specialty carriers rely on that depth to attract brokers and clients – while building shared infrastructure underneath. Core processes like underwriting, the report notes, are similar across most segments. A shared team focused on underwriting as a capability can build common tools while still accounting for the unique needs of each business unit.

From a technology perspective, the better model is to build once and deploy many times. The report contrasts this with the traditional project-based approach, where a team assembles for a single initiative, disbands, and the next project starts fresh. A product-based model keeps teams in place over time, owning a platform or business capability. They understand the backlog, the technology environment, and the outcomes they are responsible for.